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re: Has it started to become normal to pass off the CC Service Fee to the Customer?
Posted on 4/30/21 at 1:57 pm to DiamondDog
Posted on 4/30/21 at 1:57 pm to DiamondDog
quote:
it just seems greedy if you’re making 30% off goods sold.
Do you know how I know you have never owned a small business?
0
Posted on 4/30/21 at 1:58 pm to DiamondDog
Little shop in our office building has a $5 minimum on credit cards. If I just want a breakfast sandwich, I tell them to add the service fee and they have no problem with that. I don't want to see them get beat down with fees.
Posted on 4/30/21 at 2:03 pm to armsdealer
quote:
I didn't pay NEAR 3%, much less 5% unless someone swiped an AMEX, which was rare. Our card fee average was less than 1%,
Did your company have a high volume of credit card sales? Credit card companies charge lower fees to businesses with higher credit card sales. 90% of my business is on 30 day terms, so our credit card sales are somewhat low.
Example: 3.5% process fee + 3.3% interchange fee = 6.8%
https://www.fool.com/the-ascent/research/average-credit-card-processing-fees-costs-america/
quote:
The typical credit card processing fee ranges from about 1.3% to 3.5%, plus the payment processor's cut, which varies depending on the card processor and plan you choose.
To accept credit card payments, merchants must pay interchange fees, assessment fees, and processing fees. These fees go to the card's issuing bank, the card's payment network, and the payment processor.
Payment processing fees are the only negotiable credit card transaction fees.
American Express cards have the highest average fees, while Visa tends to be the lowest.
quote:
Average credit card interchange fees: 1.5% to 3.3%
quote:
Merchant category: Every merchant has a merchant category code (MCC) corresponding to its business type. Payment networks charge different interchange fees based on the business's MCC. For example, a supermarket has different fees than a restaurant.
This post was edited on 4/30/21 at 2:21 pm
Posted on 4/30/21 at 2:03 pm to YumYum Sauce
quote:
Cash is and will always be king. You dont realize how much money you can save by paying for things with cash.
Cash has its advantages and disadvantages.
Cash can be a problem if theft is an issue.
Then you also have the added costs of counting and reconciling tills then you have to have someone bring the cash to a bank. Then you also have to have a supply of coins which can add to the costs.
Some places even hire out for bringing cash to and from a bank. The 1-3% fee you pay per transaction can pay for itself if you take only plastic.
Posted on 4/30/21 at 2:04 pm to DiamondDog
Not everywhere but some places.
If they make you aware of this beforehand, that is one thing. I got pissed at one particular restaurant doing this without saying anything until the check arrived and didn’t go back until that changed.
If they make you aware of this beforehand, that is one thing. I got pissed at one particular restaurant doing this without saying anything until the check arrived and didn’t go back until that changed.
Posted on 4/30/21 at 2:07 pm to Demshoes
quote:
Little shop in our office building has a $5 minimum on credit cards. If I just want a breakfast sandwich, I tell them to add the service fee and they have no problem with that. I don't want to see them get beat down with fees.
That is also wrong. We had a similar little shop in the bottom of our building. Cards/Gifts type place, but they also stocked snacks and drinks. They had a $5 minimum for debit cards, but not on credit cards. I usually bought about $10-20 worth of stuff when I went down there. I'd just grab a few snacks and a drink, maybe a couple packs of gum. But if I'm only buying a coke and some chips and it is under $2, they'd ask me not to use a debit card. Real nice lady that I came to know over the years, and she said she would never turn someone away or make them spend the $5 for a debit card, but if we had another way to pay she preferred that. I always keep about 3 forms of payment in my wallet, so no big deal.
Posted on 4/30/21 at 2:09 pm to teke184
It’s in their merchant agreement, they are not allowed to pass the CC fees on to their customers. They can raise prices, but not penalize you for using your card. I know of only one business that had their merchant account closed bc someone reported them, and a few that were contacted by their processors letting them know that they were in violation of their agreement and re educated them on what they could and could not do.
Posted on 4/30/21 at 2:10 pm to AUFANATL
A business doesn't sign a contract with a credit card. They
sign it with a processor, if they sign it. If you get a processor that passes fees onto the user, they are not in violation. How fair is it for cc companies to give money to it's users for using but send the bill to businesses?
sign it with a processor, if they sign it. If you get a processor that passes fees onto the user, they are not in violation. How fair is it for cc companies to give money to it's users for using but send the bill to businesses?
Posted on 4/30/21 at 2:15 pm to Tarps99
quote:
Cash can be a problem if theft is an issue.
Then you also have the added costs of counting and reconciling tills then you have to have someone bring the cash to a bank.
I know zero people that own businesses with registers that have a problem handling it
Not trying to be a dick, but 99.99999% of folks who own a cash register prefer cash. The implications are obvious, so I wont go there.
Posted on 4/30/21 at 2:16 pm to DiamondDog
Yep, it became legal to do so earlier this year.
This post was edited on 4/30/21 at 2:18 pm
Posted on 4/30/21 at 2:20 pm to gatorrocks
quote:
We spend about 30k per year on CC fees at 2.7%. shite adds up quick.
Do you operate under the assumption that your revenues would be the same if you stopped taking credit cards?
Posted on 4/30/21 at 2:22 pm to DiamondDog
quote:
Has it started to become normal to pass off the CC Service Fee to the Customer?
No but I'm seeing it more, especially in small businesses. It's yet another example of small businesses need to do the right thing and stop trying to nickel and dime people, if they want support.
If they have a competitor, I'd say take the charge off or I'm going to the other business.
There was a new restaurant near me that put "2.9% fee on all credit card orders" in the absolute tiniest print on the bottom of the last page of the menu. A lot of people complained and of course the owner was never there, so it meant a lot of wait staff got the burden of abuse. His business dropped like a rock, people blasted them on social media, and after about a month, he got rid of the fee.
Plus, people will buy more if they can swipe a card.
Posted on 4/30/21 at 2:29 pm to DiamondDog
I have only seen it with companies that rarely deal with the public...manufacturer, wholesalers, etc. Most of their customers pay via check or wire. As a result, they have so few cc transactions that it doesn't make sense increasing costs by 3%.
Posted on 4/30/21 at 2:36 pm to DiamondDog
I would if i charged cards. That stuff is like a 2-3% charge for the business on every purchase
Posted on 4/30/21 at 2:41 pm to jbgleason
quote:
Don't buy their products if you feel strongly about it. Private businesses should be able to charge and do what they want. The consumer should be able to buy or not buy as they choose. Free enterprise Baw.
I mean that also works with the credit card company's argument too. If they want the dollars that comes with credit cards, than they should follow the rules.
Posted on 4/30/21 at 2:43 pm to Fat and Happy
I bought $870 worth of goods. I could have saved $140 by going to Home Depot. My wife told me to drag everything back and go buy it at Home Depot but I can’t do that.
I’ll take it as a lesson learned. Be mindful of small businesses.
I’ll take it as a lesson learned. Be mindful of small businesses.
Posted on 4/30/21 at 2:46 pm to DiamondDog
Looks like the rules have loosened up since the last time I dealt with this, but it is not as simple as just deciding that you are going to charge a surcharge. It’s even still illegal in some states.
Recent article from Merchantmaverick on the surcharge rules.
Recent article from Merchantmaverick on the surcharge rules.
Posted on 4/30/21 at 2:51 pm to GoIrish02
quote:
It's against their agreement with the CC companies, Visa and MasterCard allow anyone to report a business that charges extra for using either card. Repeated charging of fees will get their license revoked from both companies.
How would you ever possibly know if it was simply baked into the price?
Posted on 4/30/21 at 2:52 pm to DiamondDog
I’ve worked at a restaurant that took it out of the servers tips. 
Posted on 4/30/21 at 3:00 pm to armsdealer
quote:
Our card fee average was less than 1%, this included debit transactions, for most months
quote:
armsdealer
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