penegal
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I enjoy fresh produce. Many market stalls don't accept card, or are reluctant to do so for small transactions. I am usually cynical about such businesses, but given the card fees involved, I am happy to pay cash for small quantities of excellent quality fruit and veg (and it is usually cheaper than the two major supermarkets).
And dodgey places - I mean bars, pubs and clubs (especially when crowded and/or late at night). Without going into too much detail, there are numerous reasons to forgo points and have the peace of mind that your credit cards are safe in your wallet, rather than handed across a bar in the wee hours. (Think - losing your card, double pay pass taps, drinks going on the wrong tab, etc).
On the other side of the fence some proprietors I know are starting to prefer card payment as bar staff don't steal EFTPOS dockets, but they do steal cash... Of course chargebacks can be a problem, although with cameras, ID scanning on entry, ID checks for card payments, and forcing people to use the PIN, more venues are able to verify whether the person handing the card over is actually the card's owner.