Charges for using credit cards?
 

Just started noticing this around town, a TON of small businesses here are now charging 5% to USE a credit card. Many of the gas stations also don't tell you, but the price increases after you put your card in. Is this something I'm just now noticing?

I rarely have cash and I understand that it costs the businesses money to have a machine, but sometimes you just have to get with modern times.

Re: Charges for using credit cards?
 

does that include debit cards? and good morning to you

Re: Charges for using credit cards?
 

GOOD MORNING. LOL, been a while on that.

And yes, it includes debit cards...

Re: Charges for using credit cards?
 

[quote=TheMalcolmConnection;807822]Just started noticing this around town, a TON of small businesses here are now charging 5% to USE a credit card. Many of the gas stations also don't tell you, but the price increases after you put your card in. Is this something I'm just now noticing?

I rarely have cash and I understand that it costs the businesses money to have a machine, but sometimes you just have to get with modern times.[/quote]

Its a combo. Its mostly the charge of Visa and Mastercard and then the lesser merchant services of a bank imposing fees to process electronic transactions. Most people assume the processing of trillions of electronic purchases should be as free as universal health care. The business is forced then to pass the rising cost to the customer. Remember all the legislation against credit card companies in the pass year? this is likely affect, remember just because laws changes companies' bottomlines do not.

Re: Charges for using credit cards?
 

[quote=Chico23231;807825]Its a combo. Its mostly the charge of Visa and Mastercard and then the lesser merchant services of a bank imposing fees to process electronic transactions. Most people assume the processing of trillions of electronic purchases should be as free as universal health care. The business is forced then to pass the rising cost to the customer. Remember all the legislation against credit card companies in the pass year? this is likely affect, remember just because laws changes companies' bottomlines do not.[/quote]

See, I've been wondering about this kind of information. Many of the businesses also have these giant signs up saying, "CREDIT CARD COMPANIES ARE KILLING US!"

It's just a little off-putting and I understand they have costs, but maybe I'd rather see it in the price where it's something that's just hidden, rather than right in my face. :P

Re: Charges for using credit cards?
 

[quote=TheMalcolmConnection;807826]See, I've been wondering about this kind of information. Many of the businesses also have these giant signs up saying, "CREDIT CARD COMPANIES ARE KILLING US!"

It's just a little off-putting and I understand they have costs, but maybe I'd rather see it in the price where it's something that's just hidden, rather than right in my face. :P[/quote]

i agree. I think 5% is excessive, mostly mom and pop shops are the people charging it. Its just so damn hard to carry cash these days.

Re: Charges for using credit cards?
 

[quote=TheMalcolmConnection;807826]See, I've been wondering about this kind of information. Many of the businesses also have these giant signs up saying, "CREDIT CARD COMPANIES ARE KILLING US!"

It's just a little off-putting and I understand they have costs, but maybe I'd rather see it in the price where it's something that's just hidden, rather than right in my face. :P[/quote]

If I pay cash why should I have to pay for the cost of people who use a credit card?

This is a direct result of all that legislation passed to reform credit card companies and banks. Enjoy. Wait until you buy a new house and everthing that is associated with your closing has also gone up because of those same laws.

Re: Charges for using credit cards?
 

[quote=Chico23231;807827]i agree. I think 5% is excessive, mostly mom and pop shops are the people charging it. Its just so damn hard to carry cash these days.[/quote]

I have no problem carrying cash so please send me any money you have trouble carrying. I'm guess the 5% they are charging is on a small purchase and not a larg one.

Re: Charges for using credit cards?
 

But I think over the years that the number of people who pay with a credit card has gone up exponentially. In the end, I kind of think that it's the responsibility of the store to take care of the charges if they want repeat customers. There are places we don't eat at here specifically because they don't take credit cards.

Call it laziness or call it whatever you like, but I don't want to have to run to the ATM to take out twenty bucks to pay for my dinner.

It's not an issue of not liking to carry money, it's just an electronic age where my check is automatically deposited, my bills are automatically paid and my bank sends checks to anyone else who doesn't take cards.

Re: Charges for using credit cards?
 

[quote=Chico23231;807827]i agree. I think 5% is excessive, [I][B]mostly mom and pop shops are the people charging it.[/B][/I] Its just so damn hard to carry cash these days.[/quote]

Absolutely. I needed a new cable for my bass and I do like to support local business, so I went to the music store, and sure, I don't mind paying a few extra bucks to do that. But now with these 5% fees, they are REALLY not making it easy to support them. I can get it online for a quarter of the price... :(

Re: Charges for using credit cards?
 

Speaking from the accounting/bookkeeping side of the issue...merchant services fees are becoming ridiculous. For a small business, it's tempting to forget the high monthly fees and just not accept cards, but a business can not survive like that any more. It's expected that you take plastic. I have seen smaller transactions where as much as a quarter of the funds taken in are immediately gone for merchant fees, it all depends on the fee structure in the business' contract. Credit Card Merchant fees are beginning to place a burden on smaller businesses and nonprofits who want to accept credit cards.

Plus on top of the c/c merchant fees, if the business wants to accept American Express, they're forced to sign an additional merchant services contract with AMEX Merchant Services, as they are seperate from VISA/MasterCard/Discover and make you pay extra on top of your other merchant fees. This is why many businesses do not accept AMEX...they can't afford to.

So, as for this fee, it's going to be a choice between raising their prices on EVERYONE, or just add on a share of the merchant fee to those using that service. Honestly, I prefer the fee for C/C users, instead of being penalized when not even using a card and paying cash.

Re: Charges for using credit cards?
 

I allways have $100 to $300 in my wallet or stashed away at home. I may only go to the bank once a month but when I'm there I cash a check so I always have cash. My friend who owns a tackle shop said if someone spends under $10 in their store and uses a charge card they don't really make any money off the transaction. That's been years back sense he told me that and I'm not sure how much that has changed over the years.

Re: Charges for using credit cards?
 

[quote=firstdown;807843]My friend who owns a tackle shop said if someone spends under $10 in their store and uses a charge card they don't really make any money off the transaction.[/quote]

That's what I was just saying about the smaller transactions. I know some convenience stores around here won't accept a card if the transaction is under $5.00 for that very reason....after fees, they'd be literally giving their products away for nothing.

Re: Charges for using credit cards?
 

[quote=Monkeydad;807846]That's what I was just saying about the smaller transactions. I know some convenience stores around here won't accept a card if the transaction is under $5.00 for that very reason....after fees, they'd be literally giving their products away for nothing.[/quote]

I saw your post right after I posted mine. She required a $10 purchase if using a credit card but that's not legal or maybe it was against the contract with the merchant. Can't remember.

Re: Charges for using credit cards?
 

The system use to be simple until Visa and MastarCard cornered the market and started demanding more and more percentage/fees from merchants. Of course, merchants like Wal-Mart and Safeway have negotiations power unlike the mom and pop shop so they get a more favorable deal. Small merchants no longer have a choice but to pass on the cost unless they want to give 2% to 3% of the cost of goods to Visa/MasterCard.

A legislation was put forth to limit Swipe Fees and passed last year but it is only for debit card fees (gee, I wonder why?).

[url=http://money.cnn.com/2010/06/23/smallbusiness/small_business_interchange_fees/index.htm]Retailers score in swipe fee fight with credit card giants - Jun. 23, 2010[/url]

p.s. Visa and MasterCard are ripe to be supplanted by something like [URL="http://www.google.com/wallet/"]Google Wallet[/URL] through Paypal or Google checkout. I hope it takes off.

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I'm so glad I got out of the small restaurant biz. But to TMC's point, I would've just raised prices slightly to cover the increase in fees.

Re: Charges for using credit cards?
 

[quote=firstdown;807848]I saw your post right after I posted mine. She required a $10 purchase if using a credit card but that's not legal or maybe it was against the contract with the merchant. Can't remember.[/quote]

I would think it would be the latter. It's not illegal that I am aware of, many businesses have a minimum credit card transaction amount. However, the credit card merchant companies are ruthless, they DO write things in their contracts to really rip their clients off and make it difficult to get out of their contracts with huge fees to get out early. I've seen merchant companies require businesses with separate locations all under the same Fed Tax ID and using the same bank account to register each location as a separate merchant ID, allowing them to charge extra fees as opposed to if it were properly set up as a single merchant # for the business as a whole. Separate locations do not merit separate accounts if the money is all going to the same place.

They're con artists. If you're not careful, they'll suck your business dry. Thankfully,you CAN negotiate the terms.

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Cash is so antiquated these days. I haven't experienced any of these new fees myself.

Re: Charges for using credit cards?
 

[quote=Mattyk;807869[[B]B]]Cash is so antiquated these days[/B].[/B] I haven't experienced any of these new fees myself.[/quote]

Kids now days.

Re: Charges for using credit cards?
 

Yeah, kids...using credit cards, Excel and Viagra for fun. Sheesh.

Re: Charges for using credit cards?
 

[quote=Mattyk;807869][B]Cash is so antiquated these days.[/B] I haven't experienced any of these new fees myself.[/quote]

Agreed.

Re: Charges for using credit cards?
 

I would gladly pay 2-3% more for items if I never have to stand behind someone writing a god damned check in the grocery store.

Now, what's really ****ed up is my college charges 20% to use a credit or debit card to pay for tuition. Each class is $1600. That is a huge chunk of cash. Instead they'd rather I mail them a check, PAY SOMEONE to file the check, edit my file saying I've paid, take the check to the bank, make sure it doesn't bounce, etc etc. Get rid of these peoples jobs and the credit card fees don't seem too bad!

Re: Charges for using credit cards?
 

[quote=Daseal;807913]I would gladly pay 2-3% more for items if I never have to stand behind someone writing a god damned check in the grocery store.

Now, what's really ****ed up is [B]my college charges 20% to use a credit or debit card to pay for tuition.[/B] Each class is $1600. That is a huge chunk of cash. Instead they'd rather I mail them a check, PAY SOMEONE to file the check, edit my file saying I've paid, take the check to the bank, make sure it doesn't bounce, etc etc. Get rid of these peoples jobs and the credit card fees don't seem too bad![/quote]

WTF?! That sucks dude. Next time you should pay with pennies. LOL.

Re: Charges for using credit cards?
 

[quote=Slingin Sammy 33;807859]I'm so glad I got out of the small restaurant biz. But to TMC's point, I would've just raised prices slightly to cover the increase in fees.[/quote]


So we will know what % do they hit a small business for?

Re: Charges for using credit cards?
 

[quote=Mattyk;807869]Cash is so antiquated these days. I haven't experienced any of these new fees myself.[/quote]


I agree I hate using cash. Actually if I do have cash I tend to want to buy stuff more vs. just having my check card. When I use a check card silly purchases come back to haunt me when I do my budget at the end of the month and re-see the charge. When I pay cash I seem to forget it.

I usually keep ten bucks on me for walking around cash.

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This thread had me laughing at a customer. Mr stuck in the 60's with his long sideburns walks into the office to pay his bill by check then need's a receipt. He probably burned $10 worth of gas to get here and has a glove box of receipts. This guy does this about three times a month to pay his policies.

Re: Charges for using credit cards?
 

[quote=Ruhskins;807915]WTF?! That sucks dude. Next time you should pay with pennies. LOL.[/quote]

That's genius. try to get a bunch of people to pay in pennies.

3 Classes x1600 = 4800 dollars.

Not sure How i'd carry 4,800,000 pennies...

Re: Charges for using credit cards?
 

[quote=Daseal;807932]That's genius. try to get a bunch of people to pay in pennies.

3 Classes x1600 = 4800 dollars.

Not sure How i'd carry 4,800,000 pennies...[/quote]

Ok, do dimes.

Re: Charges for using credit cards?
 

[quote=Daseal;807932]That's genius. try to get a bunch of people to pay in pennies.

3 Classes x1600 = 4800 dollars.

Not sure How i'd carry 4,800,000 pennies...[/quote]

i know a chick that paid her last months rent in pennies because her landlord was a giant dick. they tried not to take it but it is legal tender and they had to take it. she went to the bank and got em there, i wanna say it was around $500 worth, she took them in in two boxes, pretty sweet.

Re: Charges for using credit cards?
 

Banks/Financial institutions ripping people and other businesses off again? SAY IT AINT SO. Nope. Business as usual. Nothing to see here. Move along.

Re: Charges for using credit cards?
 

I just remembered that a coffee shop by my office that I go to almost every day (I get coffee for free there actually) has a $2.00 minimum if using a card for the exact reason of merchant fees.

Every business/merchant contract will have a transaction amount that's a break-even point for profits. If a transaction is processed below that amount, the business will be losing money.

For a business selling goods/services at higher prices, this is not an issue, but for low-priced transactions, this must be found and addressed if the business wants to turn a profit. That's why you see a lot of coffee shops/convenience stores, etc with these extra fees or minimum transaction amounts for c/c customers.

Re: Charges for using credit cards?
 

the last place that I go to now that I know I need cash is my Barber shop.

Re: Charges for using credit cards?
 

[quote=mlmdub130;807944]i know a chick that paid her last months rent in pennies because her landlord was a giant dick. they tried not to take it but it is legal tender and they had to take it. she went to the bank and got em there, i wanna say it was around $500 worth, she took them in in two boxes, pretty sweet.[/quote]


Back in the day of paper boys on e of my teachers had a problem with her paper boy not wrapping up her paper and it would blow all over her yeard. This happened about 3 or 4 times and when he came to collect she took like 250 pennies and tossed them out in the yard. When the papper boy questioned her she told him thats how she got her paper.

Re: Charges for using credit cards?
 

[quote=firstdown;808051]Back in the day of paper boys on e of my teachers had a problem with her paper boy not wrapping up her paper and it would blow all over her yeard. This happened about 3 or 4 times and when he came to collect she took like 250 pennies and tossed them out in the yard. When the papper boy questioned her she told him thats how she got her paper.[/quote]

Bravo!


But, I bet she had some surprises when mowing that next time.