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A lot of servers prefer cash because it's easier to tip back (to table bussers, the kitchen, the hostess) and they can do it more quickly. Some also like it because they don't claim all their tips on their taxes. Cab drivers prefer cash for the same reason (that and they may not report your fare/claim that entire fare on their taxes, but if you pay with a card they will have to, as well as not being able to turn over so quickly).
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