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re: Restaurants charging 4% for using credit card

Posted on 3/19/22 at 3:36 pm to
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
64664 posts
Posted on 3/19/22 at 3:36 pm to
Tax evasion.
Posted by SammyTiger
Baton Rouge, LA
Member since Feb 2009
67789 posts
Posted on 3/19/22 at 3:38 pm to
They probably pay for some kinda of CC running service that take a pit off the top instead of buying a full system.
Posted by Wipe Out
Member since Mar 2022
128 posts
Posted on 3/19/22 at 3:39 pm to
quote:

Thanks for the notice….looks like the tip gets cut by 5% when using a credit card from now on.
Right! Punish the server who has NOTHING to do with the policy.

Tightwad assholes like you should stay home. Get fat arse off the couch and have her make you a sandwich.
Posted by Horsemeat
Truckin' somewhere in the US
Member since Dec 2014
13594 posts
Posted on 3/19/22 at 3:40 pm to
quote:

looks like the tip gets cut by 5% when using a credit card from now on.
Why punish the server for the owners policy? It's not like it affected the work they put into your dining.
Posted by OKBoomerSooner
Member since Dec 2019
3150 posts
Posted on 3/19/22 at 3:41 pm to
quote:

My parents always tip in cash
No clue how or why they would know this but said the fee gets taken out the servers tip if it’s done on a card
No one in our family has ever worked in a restaurant so not sure who told them that

I always thought it had to do with traceability for tax purposes (not that the government is missing out on a lot of cash from unreported tips from a bunch of broke arse servers)
Posted by DandA
Mandevillian
Member since Jun 2018
835 posts
Posted on 3/19/22 at 3:43 pm to
Inflation impacts everyone. From customers, to the business owners, to the employees. You're paying more because the businesses are paying more. Jobs especially in the service industry that could be filled at $13 an hour 2 years ago are now damn near impossible to fill at $16-17 today, depending on where they are located. Food costs are soaring as stock is limited, shipping issues, etc. It's an unfortunate situation all around. The larger chain restaurants can afford to take profit hits for awhile, but the local privately-owned businesses are just trying to keep from going under.
Posted by Hangit
The Green Swamp
Member since Aug 2014
39582 posts
Posted on 3/19/22 at 3:43 pm to
quote:

Colorado, Connecticut, Kansas, Maine and Massachusetts have all passes legislation banning the practice of charging convenience fees.


Posted by tigersmanager
Member since Jun 2010
7582 posts
Posted on 3/19/22 at 3:44 pm to
It's a rip off none of these places are paying more than 1 percent per transaction unless a dumb arse handles their merchant services
Posted by LSUJML
Central
Member since May 2008
46987 posts
Posted on 3/19/22 at 3:45 pm to
That makes a lot more sense than what they said
Posted by tigerinthebueche
Member since Oct 2010
36791 posts
Posted on 3/19/22 at 3:47 pm to
quote:

Seems like a shitty thing to do without having something on the menu warning you in advance.



Business gets charged 4% for the transaction. They can’t afford to absorb it.
Posted by Ancient Astronaut
Member since May 2015
33366 posts
Posted on 3/19/22 at 3:48 pm to
I think cosinos in mandeville did this once and I’ve never gone back it’s bs
Posted by AbitaFan08
Boston, MA
Member since Apr 2008
26936 posts
Posted on 3/19/22 at 3:50 pm to
quote:

Business gets charged 4% for the transaction. They can’t afford to absorb it.


I understand how credit card transactions work. I’m just saying they should either be upfront about it or bake it into the cost of their menu items.

It’s only 4%, I get that it’s not a life-changing amount. It’s just the principle of it.
Posted by DandA
Mandevillian
Member since Jun 2018
835 posts
Posted on 3/19/22 at 3:53 pm to
quote:

Never heard or seen that anywhere. Pretty sure it would be unlawful.


It's pretty common. At my place, we have a 4% processing fee that comes out of credit card tips. The owner pays 2% and the bartenders pay the other 2%. For example, yesterday my morning bartender made $450 in credit card tips, so they only "paid back" $9. It's a relatively small amount based on how much they made in total. But, my bartenders pull in about $1500 a week so that 2% doesn't really impact them that much. It's completely different for servers/bartenders scraping by making $40 to 50 a shift who need every penny they can make. It's just one of those dynamics in the service industry. Not saying it's right or wrong, but it exists. Just like most servers making $2.13 an hour.
Posted by tigerinthebueche
Member since Oct 2010
36791 posts
Posted on 3/19/22 at 3:53 pm to
quote:

It's a rip off none of these places are paying more than 1 percent per transaction unless a dumb arse handles their merchant services


Serious question: how do you get the 1%? Cause my employer- who does very few CC transactions- always asks us to include and assess the 4-5% on a cash sale. Most every customer has a revolving account but we do occasionally get a cash sale and the service charge is a PIA.
I also know of two small businesses that get tagged for the 4%. How do they get out of it?
Posted by tokenBoiler
Lafayette, Indiana
Member since Aug 2012
4450 posts
Posted on 3/19/22 at 3:54 pm to
I always tip in cash because it's harder for the owner to steal it. I'm guessing if the tip goes in electronically, he'll have some say when it gets transferred to the server, if ever.

Posted by tigerinthebueche
Member since Oct 2010
36791 posts
Posted on 3/19/22 at 3:57 pm to
quote:

It’s only 4%, I get that it’s not a life-changing amount. It’s just the principle of it.



Oh I agree. I think it’s a load of shite too. But I understand why the business charges for it. I can also understand why they don’t add it to the cost of goods. It’s a horseshite charge that shouldn’t exist.
Posted by crimsonsaint
Member since Nov 2009
37280 posts
Posted on 3/19/22 at 3:58 pm to
It’s becoming normal. Several local restaurants in my area have stated that their menu prices are now cash prices. Rather than raise their prices for inflation they have kept the prices the same but charge 4% for credit card purchases.
Posted by BobABooey
Parts Unknown
Member since Oct 2004
14384 posts
Posted on 3/19/22 at 4:05 pm to
quote:

Why punish the server for the owners policy?

The only possible reason I can think of is the wait staff should ensure the customer is aware of the extra charge. If the owner chooses to hide the notification and you don’t tell the customer even after presenting the receipt, you’re just as “guilty” as the owner, especially if people tip based on the total bill including the processing fee.
Posted by tiger7166
Louisiana
Member since Dec 2007
2633 posts
Posted on 3/19/22 at 4:07 pm to
The card machine costs, either purchased or leased, at least 50/month the the transaction fees, BOA charges 50 per month plus 1-2%. The big expense is the intercharge fees. That what keeps going up and is the fees banks or processing companies charge and that is up to 4%. They charge each other and send the bill to the merchant. Just pay cash or check if it bothers you
Posted by notiger1997
Metairie
Member since May 2009
58541 posts
Posted on 3/19/22 at 4:13 pm to
I've seen it done at several places for years now. I don't mind it at the small mom and pop places as long as they have it shown. It sure isn't going to stop me from going.

When the typical places that do the higher average bills break it out like that, it looks silly on their part. Just price it into the cost on menu.

And if it's not known to you, some places have minimums that they allow you to use a credit card.
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