@crystal626 wrote:
@DeeBee78 wrote:I own a dive bar, and I absolutely have to charge a fee for credit card usage because MY fees have gotten crazy. I was paying more than 3% with Clover until I switched to another POS system. Now I'm still at 2.8% but it's flat across all four payment networks.
I was losing $10,000-$15,000 a year in processing fees and I need that money just to keep the bar from falling apart.If those merchant fees are about to put you out of business, then opt out of taking cards. Oh yeah, you can't, because you would lose a ton of business and have to close up shop anyway. If the only thing keeping you afloat is raking credit card customers over the coals, you shouldn't be in business, sorry.
Ok great. Thanks for your input. I'll file it away somewhere I don't care.
I recently got involved in the family business and their previous payment vendor was charging a 4% "non-cash adjustment" and basically fleecing both the customers and the business (by means of charging a maintenence fee of 120 monthly + a 0.003% on the gross receipts). People rightfully complained and didn't give us repeat business. Now, I was shocked at that 4% as a credit card lover. First thing I did was find a better CC processor, we went with Chase that charges 2.6% flat across the board. Then as I got into all the rules regarding surcharging and convenience fees and most preferred nation treatment (amex) surcharging just became too complicated. So we had to options, increase the prices and have the cash paying customers (about 60% of our customers paid cash then) subsidize the credit cards customers or "provide a discount". We "increased" our prices by $3 and offer a cash discount for those paying cash and interestingly enough, credit card usage increased by 20% a year later. We noticed that repeat customers that use to always complain about having to get cash before coming were suddenly "okay" with paying the $3 dollars rather than 4% they were paying before. Complaints about credit card related cost from customers dropped to zero. ZERO. That was one of the highest friction points on the checkout process, with dozens complaints daily.
With the amount of transactions the $3 usually break us even with the fees, so I think we found a sweet spot.
Now, the reason I'm sharing this experience is because if a place is not surcharging they are accounting for that in the price you see, and they are probably increasing the prices to increase profits and cover the margin, which is worse for the consumer all around. No one is eating the processing fee, the only entity doing that was Wells Fargo and we saw how that turned out.
@ptatohed wrote:
@TrapLine wrote:Following on your post, the local Ford Dealer and I had two heart to heart conversations on what you just discussed. He told me that it was costing him over $100,000 a year for all the credit card expenses. Did mention about checks, cash and the like. I added nothing is ever inexpensive in a dealership and do you really believe after the Baby Boomers are gone that their replacement clients the Gen Zs and Mills are going to embrace the use of cash or checks (I do not believe it for a minute)? He seemed oblivious to my information.
The geo-area he is located in, is heavy industrial and Baby Boomers ... will note the local news is full of Obituary's every day ... need I say more?
The dealership has it displayed so we all can see it that they charge 3.9% on all non-cash or check transactions.
3.9%??? That would put me in the obituary!!! Amend
Best part, the local area Chamber's of Commerce organized this action and many small and medium service providers and gas outlets have adopted the same amount. So far, most have been fair about posting it. Some on the entry to the establishment and more often right by the cash register and many even say it to you before running the transaction. Don't like it but I do not write paper checks period!!!
