re: 3% Credit Card Fee

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Imagine charging 3% more to access a substantial amount of potential customers. Businesses around the world found a way to make ends meet and then some for decades without the fees, but now they’re required to survive? It’s a lazy cash grab under the woe is me umbrella.

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This is what gets me, has the processing fees increased with inflation? I get why prices have gone up due to increased goods and labor costs but has processing fees (genuinely asking)? Why is the model to build processing fees into the price of things no longer working after it did for decades?

In the end most places seem to be missing that pricing is and always has been psychological. Build the processing cost into every product and incentivize cash payments with a discount instead of offering a slimmed down price with a "penalizing" credit card fee. People probably wouldn't register a $.30 increase on a $10 item but they will never return to a business for charging a $.30 credit card fee.

quote:

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Imagine charging 3% more to access a substantial amount of potential customers. Businesses around the world found a way to make ends meet and then some for decades without the fees, but now they’re required to survive? It’s a lazy cash grab under the woe is me umbrella.

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when i was selling forklifts, we offered a cash price and had to dance around the credit card price. Our boss was very paranoid about the wording, i think there was a legal issue at one point. We couldnt expressly say that we had to adjust the price to cover the fee

The problem is that the margins are new lifts are pretty small. 7-15% for average run of the mill warehouse forklift. So we couldn't just blindly put 3% into every deal to cover the 5 or 6 people a year who wanted to use a credit card on a new lift

little easier to eat 3% for high margin stuff like parts and service