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Senior Contributor
Open123
Posts: 3,972
Registered: ‎02-23-2011

Re: The death of reward credit cards?


drkaje wrote:

Open123 wrote:

drkaje wrote:

I'm pretty certain any establishment with a surcharge sign will not get my business.


Amazingly, for shopowners, all it'll take are a few people who leave or refuse to buy to sway them.

 

Last year, there was a restaurant I frequented who refused to take Amex.  When told of this, I just left (not to make a point, but I didn't have cash or any other cards with me).  It was a party of around 10!

 

A few months ago, I suddenly see the Amex blue banner at the same restaurant.  Maybe a coincidence, but no retailers enjoy losing out on revenue.  As consumers, our loudest voice is how and where we decide to spend our hard earned money.


I believe you're right.

 

We go to a few, small cash-only places. They've been around forever and have great stuff but it's still a pain because I rarely carry cash and have to plan spending in advance. We've been eating at one place so long the owner actually let us pay later (or the next day) one time when I forgot my wallet, LOL!

 


There are certainly "cash only" restaurants that are well worth the effort to pay the old fashioned way.  

 

Where I fail to understand are restaurants who take V/MC/Disc, but no Amex.  All for 0.5% - 1% more?  On my personal spending, this is fine since I usually have other cards; but, for my business spending, Amex is preferred by my firm.  

 

We won't host company events at establishments who don't or won't take Amex.  

Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: The death of reward credit cards?


Open123 wrote:


 


There are certainly "cash only" restaurants that are well worth the effort to pay the old fashioned way.  

 

Where I fail to understand are restaurants who take V/MC/Disc, but no Amex.  All for 0.5% - 1% more?  On my personal spending, this is fine since I usually have other cards; but, for my business spending, Amex is preferred by my firm.  

 

We won't host company events at establishments who don't or won't take Amex.  


It is more like 1.5 - 2% to accept them with can be a lot. I do not agree with surcharges, but at businesses just starting out, markup is not that much and every little bit helps.  American Express does not care about the merchant, only the cardholder. If you have a dispute with a Visa or Mastercard issuing bank, you have a chance of winning. If the American Express card is issued by American Express directly, no matter what evidence you send in that you are right and the customer is wrong, you lose. American Express also charges a lot more to accept their card; not just the percentage, but a monthly/yearly fee as well. They also usually require a credit report to be looked at can still deny you even if everything is in order. It really is a hassle to set up accepting them for not much of a difference. Most people would have another card besides American Express, and if not, oh well.

Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: The death of reward credit cards?

I realize it costs more to take Amex. In some instances I'll use MC/Visa to help the owner out but it really comes down to due dates and what level of rewards or cash back. I use a BCP for groceries, it's pretty hard to imagine anyone wanting cash bad enough to compete with Amex's 6% cash back.


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Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008

Re: The death of reward credit cards?

I doubt anyone is going to be posting signs about credit card surcharges.  (Gas stations excluded, they've already done it where I live, and for quite some time).

 

Prices will go up across the board instead.  No one wants to look like the greedy bad guy, so that's how the mechants will cover the processing charges...just like they already do, unless they're total idiots.

Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012

Re: The death of reward credit cards?

Open123,

 

I own a restaurant and I accept all 4 major cards. The rationalization that some of my non-Amex accepting colleagues offer is kinda lame:

 

"Chances are, if they have an Amex, they also have a Visa or MC lurking in their wallet. They'll use that instead."

 

Well, OK. But why fight people on this? If they prefer Amex, chances are they are the kind of people that I want coming in more often. I accept CC fees as part of doing good business. Heck, I even proactively went to Amex's Go Social site to offer promotions through the Amex Synced Card program (formerly known as link, like, love on FB.) And I advertise it through FourSquare as well. 

 

Some restaurant owners have a nickel and dime attitude and they are generally, in my experience, the more marginal establishments that aren't busy enough to not be so bothered by the fees. I also advertise heavily. Again, many I know personally do NOT do any of these things because they cannot prove to themselves in  concrete fashion that it led to more business. Foolish attitudes all the way around. You have to accept these expenses as a cost of increasing business and just KNOW they are correlated. 


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Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Re: The death of reward credit cards?

Requiring a surcharge equals no business from me...simple as that. There will be plenty of other places of business that will gladly accept my CC without requiring me to pay a fee. Our society has come to a point that for the vast majority carrying cash is inconvenient which is why most people have at the very least Visa/MC debit cards. I PIF my CC's 90% of the time so my swipe of the card is as good as cash and if my CC isn't charging me interest then no merchant will either.

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Frequent Contributor
isoldmyatlas
Posts: 341
Registered: ‎04-28-2012

Re: The death of reward credit cards?

Yeah, if I see a sign like that on a store's front door, they won't get my business.  I already avoid cash-only businesses for the most part.  There are a lot of them around me but I only frequent 2 of them.  I just don't like to carry much cash since I live in a city.

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Senior Contributor
Open123
Posts: 3,972
Registered: ‎02-23-2011

Re: The death of reward credit cards?

[ Edited ]

ztnjpv wrote:

Open123,

 

I own a restaurant and I accept all 4 major cards. The rationalization that some of my non-Amex accepting colleagues offer is kinda lame:

 

"Chances are, if they have an Amex, they also have a Visa or MC lurking in their wallet. They'll use that instead."

 


I'm sure this is true.

 

There have been times when I've used another card and just made a mental note to never return.  The only exception would be if the food is both unique and exceptional to the establishment.

Contributor
BearOSO
Posts: 96
Registered: ‎10-03-2012

Re: The death of reward credit cards?

I'm sure they'll sneak in the charges by raising the prices on the menu or product a few cents. I can see bars tacking on the surcharges late at night much like some restaurants tack on the gratuity fee after a certain time. 

 


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Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: The death of reward credit cards?


ztnjpv wrote:

Open123,

 

I own a restaurant and I accept all 4 major cards. The rationalization that some of my non-Amex accepting colleagues offer is kinda lame:

 

"Chances are, if they have an Amex, they also have a Visa or MC lurking in their wallet. They'll use that instead."

 

Well, OK. But why fight people on this? If they prefer Amex, chances are they are the kind of people that I want coming in more often.


I do not really understand this. Merchants are allowed to accept or not accept any card they wish. There are some places that do not take cheques, and they people that would rather pay with a cheque will either use something else, or not get what they wanted. For someone to only have an American Express card and refuse to patronise a merchant who does not accept, seems very odd to me. Sure I would prefer to get 2% with the Fidelity American Express instead of 1.75% with the PNC Visa, but I would not just walk out or complain about it. I swipe with PNC card and go on with life.


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