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Higher end places saying they will insert a 3% surcharge for credit cards

Posted on 3/4/24 at 1:21 pm
Posted by Y.A. Tittle
Member since Sep 2003
101322 posts
Posted on 3/4/24 at 1:21 pm
This strike anyone else as rather trashy?

Seems like this was previously restricted to sort of mom and pop type takeout places, but I was sort of shocked to see it at a higher end New Orleans restaurant recently. Just struck me as sort of cheap and tawdry to see that on the menu.

Am I offbase here?
Posted by LNCHBOX
70448
Member since Jun 2009
84065 posts
Posted on 3/4/24 at 1:25 pm to
Do they advertise that their menu prices are cash prices? If not, tip would be lowered by 3%. Servers can pass along their displeasure with management.

Also, why not just name the place?

Posted by GoCrazyAuburn
Member since Feb 2010
34877 posts
Posted on 3/4/24 at 1:30 pm to
quote:

Do they advertise that their menu prices are cash prices?


Sounds like they advertise credit cards will incur a 3% surcharge.
Posted by Mr. Curious
Chocolate City
Member since Aug 2004
642 posts
Posted on 3/4/24 at 1:45 pm to
I've noticed some bars on Bourbon street charging an 18% service fee if a credit card is used.
Posted by Y.A. Tittle
Member since Sep 2003
101322 posts
Posted on 3/4/24 at 2:04 pm to
quote:

Do they advertise that their menu prices are cash prices?

I don't know what you mean by "advertise." I didn't know about this policy when I made reservations. I learned about it when I looked down at the menu, and saw where it specifically indicated they would be levying 3% surcharge if paying by credit card.
quote:

Also, why not just name the place?

I was sort of trying to see if this is something becoming more prevalent (whether others have had similar experiences at other places) before trashing one place in particular. However, if you must know, it was Domenica downtown in the Roosevelt.
Posted by LNCHBOX
70448
Member since Jun 2009
84065 posts
Posted on 3/4/24 at 2:11 pm to
quote:

However, if you must know, it was Domenica downtown in the Roosevelt.


I wonder if that's a recent policy. I don't recall them doing that in the past. I find the practice trashy since it's 2024 and almost no one pays cash. Mark your prices for what is now standard payment and offer a discount for cash if you so choose. Don't tack on 3% after I'm already seated. That is trashy
Posted by tke_swamprat
Houma, LA
Member since Aug 2004
9756 posts
Posted on 3/4/24 at 2:13 pm to
Higher end places make huge margins from the wine, martinis, and mixed drinks that they shouldn't have to insert a 3% surcharge.
Posted by Midget Death Squad
Meme Magic
Member since Oct 2008
24495 posts
Posted on 3/4/24 at 2:15 pm to
Unfortunately this is becoming standard practice. I feel as if most places are adding that surcharge to me now when I pay. They are passing their CC charge for each transaction on to us.
Posted by Y.A. Tittle
Member since Sep 2003
101322 posts
Posted on 3/4/24 at 2:15 pm to
quote:

Mark your prices for what is now standard payment and offer a discount for cash if you so choose. Don't tack on 3% after I'm already seated. That is trashy



I just sort of feel like going into any sort of accounting minutia, while I'm just trying to have an enjoyable meal, rather tawdry and ticky tacky.

I GET that places that don't say anything about it are building in such costs however they do. I don't need to see the sausage being made, though.
Posted by LNCHBOX
70448
Member since Jun 2009
84065 posts
Posted on 3/4/24 at 2:18 pm to
quote:

I just sort of feel like going into any sort of accounting minutia, while I'm just trying to have an enjoyable meal, rather tawdry and ticky tacky.
I wouldn't make a big deal out of it with my group or anything. But my tip will be adjusted accordingly and I won't return. This isn't the OT, I'm not made of money
Posted by Sixafan
Member since Aug 2023
573 posts
Posted on 3/4/24 at 3:19 pm to
Many states have laws that allow them to charge up to 4-5 percent for use of a credit card BUT only if it’s disclosed by a sign at the register.
Posted by Sixafan
Member since Aug 2023
573 posts
Posted on 3/4/24 at 3:25 pm to
Businesses in Louisiana are allowed to charge up to 4% of your total bill when you use a credit card.
The only way to avoid this charge is to pay by cash, pay with a check, or tell the business to run your card as “debit” and enter your pin number.

“One thing they do require, those businesses disclose to the consumer that there is a type of surcharge for using a credit card,” said Chris Babin of the Better Business Bureau.

Businesses are required to post a sign that says the 4% credit transaction fee is being charged, and it has to be on your receipt.
Posted by baldona
Florida
Member since Feb 2016
20418 posts
Posted on 3/4/24 at 3:25 pm to
Obviously restaurants don't do this, but what's also trashy to me is regular businesses offering venmo, cashapp, etc to pay. If you want to avoid a CC fee offer the ability to ACH a payment. Venmo or Cashapp, et all just seems extra trashy and untrustworthy.

But yes, I don't know the long term answer to this. Restaurants are fighting some major price wars right now and 3% off the top is extremely expensive at the end of the day no matter what anyone thinks.
Posted by LNCHBOX
70448
Member since Jun 2009
84065 posts
Posted on 3/4/24 at 3:26 pm to
quote:

Venmo or Cashapp, et all just seems extra trashy and untrustworthy.


What year is it?
quote:

Restaurants are fighting some major price wars right now and 3% off the top is extremely expensive at the end of the day no matter what anyone thinks.



It's not like CC fees magically appeared this year. That's a bullshite excuse.
Posted by baldona
Florida
Member since Feb 2016
20418 posts
Posted on 3/4/24 at 3:30 pm to
quote:

Venmo or Cashapp, et all just seems extra trashy and untrustworthy.


What year is it?


From a peer, absolutely. I'm talking I had a contractor ask me for a $10,000 payment. Why not a check or ACH? This is a different topic.

If you don't understand how 3% eats into a business's profit like a restaurant, then your argument is worthless. There's a reason they do it and many know people don't like it. I don't like it either, but what's the alternative?
Posted by LNCHBOX
70448
Member since Jun 2009
84065 posts
Posted on 3/4/24 at 3:34 pm to
quote:

If you don't understand how 3% eats into a business's profit like a restaurant, then your argument is worthless. There's a reason they do it and many know people don't like it. I don't like it either, but what's the alternative?


It's like you completely missed the point of the comment.
Posted by baldona
Florida
Member since Feb 2016
20418 posts
Posted on 3/4/24 at 3:48 pm to
quote:

It's like you completely missed the point of the comment.


Nah, I just figured again you are ignorant and only factoring in one expense.

Yes, CC fees have been around forever. But, restaurants up until a couple years ago had much more controlled labor, food costs, etc. But I'm sure you know I'm wrong on that also?
Posted by Y.A. Tittle
Member since Sep 2003
101322 posts
Posted on 3/4/24 at 3:51 pm to
quote:

Yes, CC fees have been around forever. But, restaurants up until a couple years ago had much more controlled labor, food costs, etc. But I'm sure you know I'm wrong on that also?




I know you're right, and still found it a bit offputting. Maybe it will become more prevalent, but it seems like more places just pass the addition on in increased menu prices, when I have to guess the vast majority of diners in such places are using credit cards.
Posted by tigersbh
Baton Rouge
Member since Oct 2005
10230 posts
Posted on 3/4/24 at 4:07 pm to
I just use cash now whenever I can. I don’t like to enrich the cc companies.
Posted by cgrand
HAMMOND
Member since Oct 2009
38679 posts
Posted on 3/4/24 at 4:42 pm to
3% of a 100 dollar check is…3 dollars
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