topic Re: Merchants Adding 4% Charge to their CC Customers in General Credit Topics

Merchants Adding 4% Charge to their CC Customers

Wavester64 — Mon, 26 Oct 2020 17:10:06 GMT

Around my town and State, many merchants are adopting the policy of adding 4% to the charge of their items (be it food, services, etc.) that the CC paying customer has to absorb because per the merchant, that is the cost they are charged for providing the convenience of using CCs to their customers and they are trying to get that back to sustain business.

Now because of the times we are in, one could argue that this is necessary so that the businesses being hurt have a chance to thrive.

Another argument could be that we the customers have been hit hard due to the pandemic as well, and we are trying to save as much money as we can to get by.

When I post something like this on Facebook in one of my local town groups, most of the replies are all PRO the merchant, that if we the customer don't like it, TOO BAD, PAY CASH & save money. One needs to keep in mind that most of these who reply like this are not into the CC game like we MF'ers are on this forum.

Now I'll ask it here since we are in the CC game to save money. Do you feel its right that merchants add a 4% charge to your total? If you feel its OK, would you feel the same way if there was no COVID?

I mean, yeah, I feel for the businesses, I was a business owner for MANY years and had my struggling times. But as a consumer/customer, where does it end? I mean we as consumers are getting these CCs, or looking for coupons, or buying Groupons to save money, just for the merchants to charge more anyway?

You see what I mean? Curious to see your take on this.

I mean this topic for all - but going to add a few buddies below to get their attention and hear their thoughts on this subject too.

@Gmood1 @Anonymous @Anonymous @M_Smart007 @coldfusion @Anonymous @JNA1 @cashorcharge @AllZero @Anonymous

Re: Merchants Adding 4% Charge to their CC Customers

Brian_Earl_Spilner — Mon, 26 Oct 2020 17:22:10 GMT

Last I checked it was against the credit card agreement to charge a surcharge to offset the fee. There's a specific law for gas stations to be able to charge more for taking a card, but I don't remember what it is.

As for the fee itself, I really don't care about 4%. My problem is people become used to it and it doesn't go away. Prices and fees always go up and are added, but never lowered and removed. It just becomes a way of life.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 17:37:12 GMT

@Wavester64 wrote:
Around my town and State, many merchants are adopting the policy of adding 4% to the charge of their items (be it food, services, etc.) that the CC paying customer has to absorb because per the merchant, that is the cost they are charged for providing the convenience of using CCs to their customers and they are trying to get that back to sustain business.

Now because of the times we are in, one could argue that this is necessary so that the businesses being hurt have a chance to thrive.

Another argument could be that we the customers have been hit hard due to the pandemic as well, and we are trying to save as much money as we can to get by.

When I post something like this on Facebook in one of my local town groups, most of the replies are all PRO the merchant, that if we the customer don't like it, TOO BAD, PAY CASH & save money. One needs to keep in mind that most of these who reply like this are not into the CC game like we MF'ers are on this forum.

Now I'll ask it here since we are in the CC game to save money. Do you feel its right that merchants add a 4% charge to your total? If you feel its OK, would you feel the same way if there was no COVID?

I mean, yeah, I feel for the businesses, I was a business owner for MANY years and had my struggling times. But as a consumer/customer, where does it end? I mean we as consumers are getting these CCs, or looking for coupons, or buying Groupons to save money, just for the merchants to charge more anyway?

You see what I mean? Curious to see your take on this.

I mean this topic for all - but going to add a few buddies below to get their attention and hear their thoughts on this subject too.

@Gmood1 @Anonymous @Anonymous @M_Smart007 @coldfusion @Anonymous @JNA1 @cashorcharge @AllZero @Anonymous

Thanks for the page @Wavester64 !

funny you should ask, I have friends who have local small businesses and I had to twist their arms to get them to add the 4% surcharge to help offset their costs.

you know it's a situation that I wouldn't pay the 4% surcharge. I would pay cash, but for the business owner, they are recouping their cost and maybe a little bit for the trouble. Because the inter-exchange fees run anywhere from ~2% to 3%+.

so how do I feel about it? Well if I'm the consumer, I don't like it and would pay cash. For the business owner, they are just recouping their cost and it's up to you whether to pay cash or credit, either way is the same to them.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 17:42:26 GMT

Yeah... merchants aren't supposed to do this and can be penalized by the card networks/payment processors

It's not likely that they dropped their prices by 4% and then added the 4% CC fee to match; they probably just want to grab more money and tacked on the additional fee on top of the same price that already included their CC txn fees

Re: Merchants Adding 4% Charge to their CC Customers

cashorcharge — Mon, 26 Oct 2020 23:22:39 GMT

I have never seen or been asked to pay a fee for using a credit card. It's interesting that I see a lot of advertisements for processors and even within my own organization, 4% seems HIGH considering I typically see 2 or 2.5% fees. I will add that I DO see a lot more of "We've gone Cashless" as a result of COVID and you're forced to use a card...and even then, those businesses aren't charging a fee on top of their pricing. I would likely not blink if my $4.00 fancy coffee was increased by $0.18 (4%) but then it would be less noticeable if the retailer just raised the price versus calling me out saying they're going to charge me more because I'm pulling out a card.

I should also add the guy that cuts my hair no longer takes credit cards...he's switched to Cash or Venmo or Apple Pay...but I tend to think that's more about skirting taxes than giving more money away for a credit card considering I've been paying him that way for years.

I am one of those people that doesn't really carry cash (CashorCharge irony right) because I hate dealing with change so I use a card for everything and then pay that. I tend to work the bonuses and % back where I can or extra points at specific places and I've been that way for a long time. It's more about convenience. If the ApplePay Wallet would allow more than 12 cards in the app, I would be REALLY happy!

I get people are struggling, I try to focus my spend on small business when I can, do what's right and help where it's possible. I don't know that I would stop going somewhere that passes the fee on...I would just be getting my 2% back on a greater purchase depending on what card I use. Over time it would certainly add up. I may have a different perspective if I saw it more. Fortunately, I haven't seen it yet.

Thanks for sharing!

Re: Merchants Adding 4% Charge to their CC Customers

coldfusion — Mon, 26 Oct 2020 17:52:55 GMT

https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter140d/Section28a

Re: Merchants Adding 4% Charge to their CC Customers

Brian_Earl_Spilner — Mon, 26 Oct 2020 17:56:07 GMT

@coldfusion wrote:

https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter140d/Section28a

There's one version. Maybe that's what the deal was with gas, they're not charging more for card, they're giving a discount for paying cash.

Re: Merchants Adding 4% Charge to their CC Customers

coldfusion — Mon, 26 Oct 2020 18:10:21 GMT

@Brian_Earl_Spilner wrote:
@coldfusion wrote:

https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter140d/Section28a

There's one version. Maybe that's what the deal was with gas, they're not charging more for card, they're giving a discount for paying cash.

Yep.

Re: Merchants Adding 4% Charge to their CC Customers

DaveInAZ — Mon, 26 Oct 2020 18:18:34 GMT

@Anonymous wrote:
so how do I feel about it? Well if I'm the consumer, I don't like it and would pay cash. For the business owner, they are just recouping their cost and it's up to you whether to pay cash or credit, either way is the same to them.

If I'm the consumer I don't like it but would NOT pay cash, I'd just take my business elsewhere. I think any surcharge on using a CC is pure B.S.. Every business has a bunch of expenses, and CC commissions are a fraction of many of their other expenses - rent/mortgage, labor, utilities, etc. Are you going to advertise a new battery for my car for $100 and then when I come on to buy it are you going to add a 25% surcharge for your rent, 20% for labor, 15% for electricity, and then 4% for my CC??? If they did they wouldn't stay in business very long.

And while they're absorbing an expense of 2.5-3% for a CC they're saving time of having to go to a bank for a deposit/change order, and avoiding the risk of having a large amount of cash on hand. And in the middle of a pandemic not having to handle cash avoids a risk of spreading the Covid virus. Most fast food places in my area are placing the CC terminal in the window so you can insert your card yourself, if you pay with cash they hand you a plastic tray to place you cash in and hand your cash back in the tray, and they wear gloves.

Credit card commissions are a cost of doing business, get over it and price your goods appropriately to cover all your expenses and still make a fair profit.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 18:44:31 GMT

It’s not illegal and there’s a difference between a surcharge and a convenience fee. I’ll look it up and post the link but if I remember correctly your convenience fee can only be charged by the government or a school, payment channel, something like that, but a surcharge can be done legally.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 18:39:31 GMT

read this it’ll explain everything:

https://www.experian.com/blogs/ask-experian/how-to-avoid-credit-card-convenience-fees/

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 18:45:44 GMT

A surcharge is not giving a cash discount that’s a totally different thing. Convenience fees are only allowed due to the payment channel and surcharges can be charged in most jurisdictions.

what state are you in @Wavester64 ?

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 19:15:19 GMT

@Anonymous wrote:
read this it’ll explain everything:

https://www.experian.com/blogs/ask-experian/how-to-avoid-credit-card-convenience-fees/

Appreciate the good information! Will add the state I reside in charges a fee if you use credit cards but not if you pay by cash, check or other non fee bearing products. The state has the situation where they cannot cover non state charges. Also, many of the cities in the state accept credit cards and do charge for the card fee as they cannot justify spreading the credit charges over the utility base (legal matter) or other governmental related services.

Re: Merchants Adding 4% Charge to their CC Customers

M_Smart007 — Mon, 26 Oct 2020 19:11:41 GMT

If they add 4% to my orders, it would be the last time.

I will gladly tell them, I will take my bus. to a merchant who does'nt ~~Extort~~ charge the 4%.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 19:15:44 GMT

As a side note, it is pretty common in the restaurant/bar industry to remit CC processing fees from employees CC tips.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 19:21:21 GMT

My friend hasn’t had one person bat an eye at the surcharge at his business. But that’s what he was afraid of, that everyone would just go somewhere else, but they didn’t bat an eye.

As stated above the merchant can just increase the price of the good to offset the fee rather than adding a surcharge which a lot of people will find offensive.

As a consumer I don’t like the idea either. But I’ve been a business owner before and I could see the utility there. But I can also see some people getting offended, so that would have to be an individual business choice, I suppose.

Re: Merchants Adding 4% Charge to their CC Customers

Wavester64 — Mon, 26 Oct 2020 19:22:09 GMT

@Anonymous wrote:
A surcharge is not giving a cash discount that’s a totally different thing. Convenience fees are only allowed due to the payment channel and surcharges can be charged in most jurisdictions.

what state are you in @Wavester64 ?

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 19:23:04 GMT

That’s kind of comical if you think about it. In order to get more business they gave rewards cards and charge a higher interexchange fee. Then the merchant adds a surcharge fee to recover the rewards that we earn, so then we end up back at zero and so is the bank, but we feel like we gained something. We did, our own money, lol.

Re: Merchants Adding 4% Charge to their CC Customers

Anonymous — Mon, 26 Oct 2020 19:29:00 GMT

@Wavester64 wrote:
@Anonymous wrote:
A surcharge is not giving a cash discount that’s a totally different thing. Convenience fees are only allowed due to the payment channel and surcharges can be charged in most jurisdictions.

what state are you in @Wavester64 ?
NJ

@Wavester64 well then from the list at Experian, it doesn't look like your state prohibits it, but I wouldn't take that as gospel without looking it up.

Re: Merchants Adding 4% Charge to their CC Customers

gdale6 — Mon, 26 Oct 2020 19:54:15 GMT

One merchant in town here sent me a bill for 85.00 I called them to pay it and it ended up 87.98 when I called them they told me it was the banks automatically charging all CC customers 3.5%, that there was nothing they could do and if I wanted to complain to call my credit card company which I did do, they opened up a dispute for the 2.98 and I know whats going to happen its going to be charged back to them along with a 25 fee for the chargeback. I used to take CCs in my businesses and know banks dont make anyone do this...... Pure crap that they pass on the fees and the merchants or people that are saying pay cash, cash is going by the wayside its all going to be CCs/debit cards before long....