Judged for using credit?

[taxi818]

Yes. 20 % is more than enough. And most are happy. However. Sometimes people click other. And out 2 dollars. Angry driver. Others bypass tip altogether. Citing they did not see tip button. Hehehe. But it's all good. Others make up for it.

[pipeguy]

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@mongstradamus wrote:

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@pipeguy wrote:

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snip (because the quotes are getting long)

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I am curious about how companies handle that issue, do they price in the swipe fees into the product ? I can see both sides of the coin. What will be the next step, will they be like gas stations that charge different prices for cash and credit ?

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Most merchant agreements don't allow a surcharge for using their card. I believe there was a court settlement recently (within the last year) that invalidated that clause and stated that merchant CAN charge a surcharge for credit card usage - however very few merchants are doing this - they have to post a sign saying they charge a surcharge for credit card sales - if I remember correctly.

Merchant fees are based on several factors, one the type of business you have, two if you are internet based or operate an actual storefront. The final rate is based and adjusted yearly on a) average sale and b) gross volume. My business operated on a high average sale and 80% plus of my business was credit card rather than cash. but that was before the current rewards/cash back rates (I closed my last business in 2007 after 18 sucessful years and 2 years of serious bleeding).

Most small business just ignore the not too often small or tiny sale, but not for too long. When average sale goes from $100 plus to under $10 their over all swipe fee rates will change from 2.75% to 4.75% which means ALL of their sales now cost them an extra 2 percent.

Issuers/banks are way ahead of the game and if they are offering you 1.5% back they are collecting billions of "extra" fees from their universe of merchants to send you a $50 check. Good for you and "who cares?" for them.

As far as "deducting" the cost of doing business from gross income, yes of course merchant fees are deductible, but there has to be a living income from a business to survive and where "CVS" can make it up pricing-over pricing or cost shifting other lines the small merchant can't if he wants to compete with CVS.

I really did not intend to get into the economics of survival for small business, since this thread deals with "a few cents of swife fees" when you buy a cup of coffee for $1.00. Just understand that the $1.00 coffee sales offset the price of something else and pretty soon that $1.00 coffee will go to $1.25 to cover the 2.75 cents plus 30 cents merchant fees to continue to allow coffee sales to offset the cost of sugar or cups or donuts. "Costs" be it health insurance, wages, or bank fees gets passed on until they become unsubstainable, at that point the business closes. If I don't like CVS, I don't shop there, but I personally will not contribute to killing a business I use.

Again, I don't expect many to agree with me on this subject. 

[taxi818]

At the most in can. Fees are 5%. Which is ripping off driver. From cab company. However. If you gave me 20% tip. I still get. 15. And that other 5 percent in the back end come tax time.

[plastic_man]

I know uber only takes cc.

[pipeguy]

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@Closingracer99 wrote:

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@mongstradamus wrote:

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@Closingracer99 wrote:

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@mongstradamus wrote:

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@taxi818 wrote:

Sorry iPhone. As the name suggest. And I do pay those merchant fees. However. Every cent I pay. I can write off on my taxes. So merchant is in fact not losing a dime. Unless he is hiding from Uncle Sam. And when you buy that two dollar coffee. You can be sure fee is added. So if customer ride and 5 bucks want to use credit card.  I say have at it. Fact from taxi guy view. 

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are most taxi drivers taking your point of view, because i heard some won't take CC at all. May sound selfish but i do want those 3x from my csp 

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Well in NYC they are forced to allow Credit card usage and they don't make us pay for the Fees 

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I know and i can tell the taxi drivers aren't all that happy about it. I took an taxi from GCT to Penn station , and i paid with CC i could see in taxi drivers face not too happy.

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I tell them I tip them 20% which then they seem fine with. I undertsand this is their living and tipping 20% or more would off set the fees no ? typically i would tip them around 16% if paid in cash

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So you pay an extra 4% (25% more) to get 1-2% back on your credit card rewards?

[taxi818]

It's against federal law to charge more for use of credit card. So no. Cash stations get away with it because they say cash discount. But they have it worst. Example. A gallon of gas 350. Per gallon. Station owner only snakes maybe 12 cents per gallon. So here comes credit card. He must pay 2.5 percent. That is per dollar not gallon. So he paid 7.5 for you transaction. Now he only made 4 cents per gallon. But if he did taxes correctly. He would be able to take that loss away from income. Profit loss statement. So he need to sell thousand of. Gallons to make money off gas. But he would make money off store sales. Coffee. Donuts. Etc...

[barbaralee]

I work at a company that services financial institutions, mostly credit unions but banks as well. I see credit card statements all day, everyday, and to judge that someone using a credit card is in debt is (in my experience) not a far off assumption. The vast majority of the accounts that I pull up the people are not only in debt, they are barely making the minimums, and immediately charging it back up. We were looking at a statement the other day for training purposes and the cardholder's interest to date was close to $600. 

A few years back when I worked in credit cards for USAA I would say it was an almost even ratio of people in debt vs those who pay off. One thing that was pretty consistent across the board:

If the member was older or retired they were usually a PIF'er.

If they were younger/middle aged they were in debt. 

Of course there are always exceptions... I spoke with a judge once that I tried my darnest to get his credit line increased. He was grandfathered in from years ago and had 50k credit line, which was maxed. He was needing his credit extended to pay his taxes. I spoke with three underwriters on his behalf, it was a no go.

Another young man I talked to was so paranoid about how having a credit card affected his credit that he would use the card and pay it off as soon as it posted. But like I said... these guys were the exceptions to the general rule, imo. 

And yes, I do believe a few of my friends think I am in debt, lol. I don't blame them! If I see people using credit cards I often wonder how much debt they are in as well. 

[Closingracer99]

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@pipeguy wrote:

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@Closingracer99 wrote:

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@mongstradamus wrote:

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@Closingracer99 wrote:

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@mongstradamus wrote:

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@taxi818 wrote:

Sorry iPhone. As the name suggest. And I do pay those merchant fees. However. Every cent I pay. I can write off on my taxes. So merchant is in fact not losing a dime. Unless he is hiding from Uncle Sam. And when you buy that two dollar coffee. You can be sure fee is added. So if customer ride and 5 bucks want to use credit card.  I say have at it. Fact from taxi guy view. 

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are most taxi drivers taking your point of view, because i heard some won't take CC at all. May sound selfish but i do want those 3x from my csp 

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Well in NYC they are forced to allow Credit card usage and they don't make us pay for the Fees 

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I know and i can tell the taxi drivers aren't all that happy about it. I took an taxi from GCT to Penn station , and i paid with CC i could see in taxi drivers face not too happy.

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I tell them I tip them 20% which then they seem fine with. I undertsand this is their living and tipping 20% or more would off set the fees no ? typically i would tip them around 16% if paid in cash

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So you pay an extra 4% (25% more) to get 1-2% back on your credit card rewards?

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na while that is nice I do think  that making them take Credit cards and they have to pay for Fee's is hurtful specially when it how they make a living. Some and if not a lot of Taxi drivers here work for a company which gives them the car and licence to drive a Taxi since medallions cost a lot of money so some of the money they make goes to them and the rest is for Fees and the driver. Also I knew quite a few people who tip terribly and I had to tell them to tip a decent tip whenever we are doing something.  I just feel the need to offset the Fees they pay and giving them a 20% tip is me telling them I am sorry for using a Credit card.  Honestly I don't take cabs a lot so never carry cash unless I need it and the few times I take a Cab is because of Train issues 

[taxi818]

Great comment. Well according to stats from credit .com. They show your debt vs your age group. It's not pretty. Hehehe

[Closingracer99]

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@barbaralee wrote:

I work at a company that services financial institutions, mostly credit unions but banks as well. I see credit card statements all day, everyday, and to judge that someone using a credit card is in debt is (in my experience) not a far off assumption. The vast majority of the accounts that I pull up the people are not only in debt, they are barely making the minimums, and immediately charging it back up. We were looking at a statement the other day for training purposes and the cardholder's interest to date was close to $600. 

A few years back when I worked in credit cards for USAA I would say it was an almost even ratio of people in debt vs those who pay off. One thing that was pretty consistent across the board:

If the member was older or retired they were usually a PIF'er.

If they were younger/middle aged they were in debt. 

And yes, I do believe a few of my friends think I am in debt, lol. I don't blame them! If I see people using credit cards I often wonder how much debt they are in as well. 

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Well I am 23 and not really in "debt" I am carrying a $394 balance on my Chase Freedom because it is 0% APR and rather just float it.. to make the assumption a person is in debt is wrong.   All my friends who have Credit cards aren't in debt either