Credit card "tax"

[Bravo1413]

I believe the best way for a business to handle the credit card fees is to build the fees into their cost of doing business. To make it fair for those who pay cash, a discount can be applied to cash sales, equivalent to what the credit card fees would be.

Transactions by check are handled just like a credit card or debit card payment and the check is generally handed back to the buyer(Some businesses retain the processed check.) as the transaction is completed via an Electronic Funds Transfer (EFT), via an Automated Clearing House (ACH), so no discount for paying by check.

Easy-peasy.

Woody

That’s the way is was when I was younger. It was illegal to charge a fee for using a c.c, so all gas stations (which is were I worked) instead included charges in pricing and gave a cash discount instead. Laws may have been changed, but I agree that it can be abused and actually a double charge in the fact that increases have already been added in pricing and then added again on ticket.… just pay cash for everything and make harder for gov. To bring out CBDC…. When you can’t even get decent internet in Oklahoma, image using CBDC and internet down, or power outage, or you pissed off the gov. And they block your account.

 

[Schlafftablett]

In average, I pay right around $150,000 annually in CC fees. My partner and I were discussing adding a surcharge as well.

It’s all well and good to say “just add it into the bill” but for the fact that we live in the age of internet and stupidity. it is very common for consumers to walk into my store looking for a gun and immediately pull out a phone with the same gun for $8 less and then inform me they’ll just buy it online. I can sit there and show them that by the time they order it, pay shipping, tax, and transfer it will cost them an extra $20 and more time and they still get indignant that they’re ”paying more for the gun”

 

[StLPro2A]

The misses and I were talking the other day how some businesses are now putting a fee on top of credit card payments. Buds has always done it but now we are talking local stores and services in our area. I remember back in college I was told this was against the credit card agreements to do so, yet that was in the 80s so maybe it has changed.

I get why they are doing it, yet the purpose of a credit card is guaranteed payment and more security for the seller and buyer. Seems like a short sighted business plan but my concern this may be a growing trend based on what I am seeing.

I will be honest, this makes a difference at where I shop and won't pay that fee out of principal. Anyone else have a thought on it?

GunBroker charges sellers a fee based on selling price. Additionally, most sellers on GunBroker charge 2.5-4.0% for using credit cards, and GB has become Big Brother by collecting sales tax. I quit buying on GB, using GB only as a price checking utility before I buy elsewhere, direct from seller outside GB.

 

[crapsguy]

The misses and I were talking the other day how some businesses are now putting a fee on top of credit card payments. Buds has always done it but now we are talking local stores and services in our area. I remember back in college I was told this was against the credit card agreements to do so, yet that was in the 80s so maybe it has changed.

I get why they are doing it, yet the purpose of a credit card is guaranteed payment and more security for the seller and buyer. Seems like a short sighted business plan but my concern this may be a growing trend based on what I am seeing.

I will be honest, this makes a difference at where I shop and won't pay that fee out of principal. Anyone else have a thought on it?

been that way for paying property or income taxes for a long time - I have not found many businesses who charge the extra 3% or so - I think most eating joints build it into their price and I expect their help gets better tips if on the card

 

[KOPBET]

So theoretically, if I raise a $50 menu item by 3% to $51.50 to cover the cost of the CC fees, then if I get charged 3% by the CC company on the $51.50 it costs me $1.54 to raise the price $1.50. What am I missing here?

 

[trekrok]

So theoretically, if I raise a $50 menu item by 3% to $51.50 to cover the cost of the CC fees, then if I get charged 3% by the CC company on the $51.50 it costs me $1.54 to raise the price $1.50. What am I missing here?

That they are .04 in the 'hole' instead of 1.50. Is that what you mean?

 

[SoonerP226]

So theoretically, if I raise a $50 menu item by 3% to $51.50 to cover the cost of the CC fees, then if I get charged 3% by the CC company on the $51.50 it costs me $1.54 to raise the price $1.50. What am I missing here?

You don’t raise it by the same percentage, you raise it by a percentage that will cover the lost percentage—f’rinstance, if you pay a 3% processing fee, you could raise the price by 3.1% to cover the fee and put you back at $50 for the menu item.
$50x1.031=$51.55
$51.55x0.97= $50.00
If you then offer a 3% discount for hard cashy money, you’ll come out at the same $50 price.

 

[CHenry]

What about Debt cards?

 

[roostermcbee]

A hot new local pizza place charged me 3% for using my card. I didn't notice until I got home. I was not happy. I won't be going back. I feel like the credit card fee is their part of doing business. I just bought a gun on GunBroker. The seller charged me a $8 GB fee. I argued, but he says he always passes the fee on to customers. I countered with, it's your fee for using GB. He wouldn't come off of it. If I didn't want the gun so bad, I'd have backed out of the deal. I think I'm done with GunBroker. Credit card fee, taxes, high shipping, now extra fees. I've had enough.

 

[Schlafftablett]

What about Debt cards?

Same. Sellers get hit with fees for any card. Debit are usually slightly less but it all averages out to @ 3%.