Businesses charging 3% for using a CC

[unsungivy]

So, I'm ok with this for smaller mom&pop stores; they're expanding the type of payment they take on a razor-thin margin. I'm ok with my dentist doing this: they have a sign that spells it out on their counter and recommends using HSA/FSA directly.

I'm NOT ok with restaurants (especially sit-down for which 90% of customers would pay with a CC) doing this, and burying the lead. CC swipe fee is the "cost for doing business", and them having it in the corner of the menu (which you no longer have by the time the bill comes) and suddenly the bill differs from what they just ran on your CC without them actually saying anything to you... nope. You won't get repeat business.

It does seem like more places are fobbing off this swipe fee to the consumer rather than absorbing it as the "cost of doing business" or offering a DISCOUNT for using debit or cash.

I'm concerned about this basically ripping off people who don't pay attention, like my 80+yr old parents. They just want to use 1 or 2 cards for everything. For most people (who don't live on these forums) 3% back is hefty enough that they may not have any better in any category, much less as a flat rate. This means that they are either breaking even after more work, or actually spending more money using a CC. (This is where having a 1% debit card would actually trump CCs, but with no protections.)

Thoughts? Anyone else starting to get irate at this shadiness, especially the growing prevalence?

[Spotsy]

I agree that it is frustrating to have these "fee" being added to our checkout bills, but let's not stop at simple CC usage fees.  How about Target in CO or some other state charging a 1% or maybe it's .5% fee on all checkout bills for 'maintaining the property'.  Or how about tipping....tipping on everything it seems.

As a consumer, I would like to see a rule allowing the ability to write a check to avoid CC fees, or we must be given a discount for doing self-checkout, or tips are not allowed on a CC charge, just the product being purchased. Or we can simply refuse to patronage these places that charge fees at checkout.

Yes... it's only going to get worse....and more frustrating.

[redpat]

CC costs are mostly baked into the prices of the products or menu. 

For as long as I can remember this started at the gas pump, cash vs cc price.

For those who say they get 5% cashback on gas, it really isn't so if you are paying 5 - 10 cent more per gallon using a card, 18 gallons x $3.50 = $63 and cash price is $3.40 is $61.20 the difference is $1.95 or really 3% cashback, if it's 3% CB you are even.....

It's always, buyer beware out there.

[JoeRockhead]

I understand why people react to this. I'm a business owner and I also don't agree with the practice.  But to propose a question, doesn't it come down to how the cost is presented rather than the cost itself?

If prices were simply raised across the board to compensate for merchant fees along with everything else considered in the cost of doing business, would people even notice?  The end result would be the same. The only difference is that when it’s broken out as a separate line item, it’s more visible and that naturally draws attention, and people are upset about it.

Merchants have always tried to recover the cost of accepting cards one way or another. This just makes that cost explicit rather than implicit.

That said, clear disclosure matters. When customers know what to expect upfront, there’s a lot less frustration.  Unfortunately many businesses don't go out of their way to to be ultra transparent, but rather satisfy the minimum requirements for disclosure as deemed "sufficient" by their state laws.

[Vinjints]

Discounts for using self-checkout. That is something I can definitely get behind.

[Tdatb64]

I was particularly miffed when I went to pay my storage bill online last month and found they'd instituted a 2.1% credit card fee. I suppose I could pay with my debit card but I just got a Huntington Bank Cash Back card that gives 3% CB on everything the first year and .9% is still better than nothing, I guess...

[dfwxjer]

Convenience fees and surcharging are one of the top merchant topics these days. 

In theory there are pretty firm guidelines from the Payment brands but more and more merchants are just implementing these fees with little regard for following the rules. 

I'm with the OP in that I won't re-visit a restaurant that adds hidden fees, or runs the card for more than agreed upon. I also don't visit coffee shops, or any counter service place that expects tips for doing their job. It just makes my life easier. 

Funny enough, my FFL and my local liquor store both offer a 5% discount for using cash or debit which I am fine with because they're upfront about the difference. 

[redpat]

---

@dfwxjer wrote:

Convenience fees and surcharging are one of the top merchant topics these days. 

In theory there are pretty firm guidelines from the Payment brands but more and more merchants are just implementing these fees with little regard for following the rules. 

I'm with the OP in that I won't re-visit a restaurant that adds hidden fees, or runs the card for more than agreed upon. I also don't visit coffee shops, or any counter service place that expects tips for doing their job. It just makes my life easier.   

Funny enough, my FFL and my local liquor store both offer a 5% discount for using cash or debit which I am fine with because they're upfront about the difference. 

---

The days of covid tipping are long gone.  When they turn the screen to me for a tip I happily tap "No Tip".  I have been there many times for coffee and now they don't turn the screen anymore.

Don't be bullied into tipping.

[AndySoCal]

The link below gives an idea of the costs of a credit card

https://www.fool.com/money/research/average-credit-card-processing-fees-costs-america/ 

As long as the merchant or provider clearly state their policies I am fine with that. Family owned businesses or providers I am fine paying the fee if charged. 

[crystal626]

We decided to go to a new restaurant for Valentine's Day... Sat down, ordered our drinks, started eating our chips and salsa... Just to see a 3.85% "non-cash adjustment" in the back of the menu. We asked about it and they said they would charge this even if we used a debit card! Needless to say we won't be back and this is actually illegal here as our state bans charging surcharges on debit cards (they call it a cash discount on the menu but a cash discount would be putting higher prices on the menu and then discounting at checkout, this is definitely an illegal surcharge) so I really should report them.