Charges for using credit cards?

[saden1]

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?).

Retailers score in swipe fee fight with credit card giants - Jun. 23, 2010

p.s. Visa and MasterCard are ripe to be supplanted by something like Google Wallet through Paypal or Google checkout. I hope it takes off.

[Slingin Sammy 33]

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.

[firstdown]

Originally Posted by Slingin Sammy 33

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.

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

[MTK]

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

[firstdown]

Originally Posted by Mattyk;807869[[B

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

Kids now days.

[Ruhskins]

Originally Posted by Mattyk

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

Agreed.

[Daseal]

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!

[Ruhskins]

Originally Posted by Daseal

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!

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

[Daseal]

Originally Posted by Ruhskins

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

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...

[mredskins]

Originally Posted by Mattyk

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

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.

[Monkeydad]

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

[firstdown]

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.

[NC_Skins]

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

[Monkeydad]

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.

[mredskins]

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