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re: 3% Credit Card Fee
Posted on 2/2/24 at 5:30 pm to lshuge
Posted on 2/2/24 at 5:30 pm to lshuge
That's usually against the ToS of their credit card processing provider
I know when I owned a gas station my processor was very clear that you aren't allowed to do that
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
I know when I owned a gas station my processor was very clear that you aren't allowed to do that
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
This post was edited on 2/2/24 at 5:32 pm
6
Posted on 2/2/24 at 5:37 pm to stout
quote:
That's usually against the ToS of their credit card processing provider
Some states have laws against it. Currently Louisiana does not.
quote:
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
A lot of businesses are doing it, especially restaurants, with margins getting tighter. So either they are going to hide it and have a price increase, while others choose to charge the client and be upfront about it.
Posted on 2/2/24 at 6:30 pm to stout
quote:
That's usually against the ToS of their credit card processing provider
I know when I owned a gas station my processor was very clear that you aren't allowed to do that
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
This is no longer the case. The VISA/MC agreements once prohibited the surcharge, in fact they would fine the bank of the merchant who surcharged to get the bank to come down on the merchant.
AmEx allowed the surcharges and VISA/MC followed them.
My problem with this is that the merchant is allowed to offer credit without having to have a credit and collection department. Accepting CC is outsourcing the credit function to increase sales, yet now the merchant does want to pay the outsourcing fee that helps them increase sales.
Payroll is another function that can be completed in-house that is often outsourced to a 3rd party provider, yet companies don't surcharge their employees for payroll processing.
I'm a 30 year bank auditor married to a 30 year veteran of the payment processing industry. We've seen the change and don't agree that it's good for the consumer. However the small business has a better lobby than the consumer and was able to get the change.
I avoid it whenever I can because it is a cost of doing business. I don't charge it to my clients, and avoid paying it at all costs.
I've seen many merchants take advantage of a 3% processing fee and surcharge 4.5%, blaming the banks, but the merchants have gotten greedy and don't want to incur legit costs of offering credit.
Posted on 2/2/24 at 9:53 pm to stout
quote:
That's usually against the ToS of their credit card processing provider
I know when I owned a gas station my processor was very clear that you aren't allowed to do that
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
The processing companies that provide the service are actively recruiting businesses to use their machines/services and enact these fees, and it is a kickback scheme. It is essentially a 3% bump for the business disguised as a fee paid to the CC processing company. What the business has been paying for the CC service doesn't change, the price a customer pays is just jacked up 3% on the back end and the profits are split based on the percentages in the contract.
Posted on 2/2/24 at 11:03 pm to stout
Them days are over. Any big ticket item that they need that % they will pass the cost to you. Times are tough and no one wants to eat that fee. Most services don't have a full 3% fee so they are actually charging you more which I'm not a fan of. If a retail wants to take the chance of passing their card swipe fee on to you so be it. But it they charge you more than that sucks.
Posted on 2/3/24 at 6:15 am to stout
quote:
That's usually against the ToS of their credit card processing provider I know when I owned a gas station my processor was very clear that you aren't allowed to do that Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
This has been a thing for a while. Best example i can give is calling utilities up to pay over the phone, they charge a fee if you use a card.
The gas stations or convenience stores I haven’t noticed charging a fee, but do the minimum amount to use a card thing.
Breesus hits it. They have put a choke on small businesses. All they are doing is selling lies about the economy. These costs to these businesses aren’t coming back down. So the cost to the consumer isn’t either.
This post was edited on 2/3/24 at 6:21 am
Posted on 2/3/24 at 12:24 pm to stout
quote:
Maybe things have changed or they don't care but it's a cost of doing business and seems petty to pass it down to the consumer
It gets passed to the consumer either way. Just like any other business expense.
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