Ugly Hedgehog - Photography Forum
Home Active Topics Newest Pictures Search Login Register
General Chit-Chat (non-photography talk)
Charging Customers to use Credit Card
Page 1 of 2 next>
May 25, 2023 09:06:23   #
Bison Bud
 
There seems to be a new trend of passing on credit card charges to the customer in the order of 3%. While I don't much care for this, I can also see how and why some businesses feel the need to do so and have paid it when necessary. However, I came across a bit of a new take on this at a local restaurant the other day that really rubbed me wrong. They posted a sign at the checkout saying: "We have a built in discount in our prices for cash purchases. If you choose to use a credit card instead of cash, then you will not receive this discount and a 3.5% charge will appear on your bill." I realize that it's pretty much the same either way, but why couldn't they just say that they have to pass along the credit card charges rather than claiming that they have a "Built-In" discount for using cash? I'd much rather them call a "Spade a Spade" rather than try to disguise it as a discount for cash rather than a charge for the credit card. I guess that's just Marketing, but why the need to be deceptive about it? Frankly, it may be a good while before I return to this restaurant.

Reply
May 25, 2023 09:14:53   #
Warhorse Loc: SE Michigan
 
This practice is what has made me pay cash way more often than I used to.

Reply
May 25, 2023 09:15:22   #
Toment Loc: FL, IL
 
Tomato ๐Ÿ… etc

Reply
 
 
May 25, 2023 09:15:32   #
jerryc41 Loc: Catskill Mts of NY
 
Bison Bud wrote:
There seems to be a new trend of passing on credit card charges to the customer in the order of 3%. While I don't much care for this, I can also see how and why some businesses feel the need to do so and have paid it when necessary. However, I came across a bit of a new take on this at a local restaurant the other day that really rubbed me wrong. They posted a sign at the checkout saying: "We have a built in discount in our prices for cash purchases. If you choose to use a credit card instead of cash, then you will not receive this discount and a 3.5% charge will appear on your bill." I realize that it's pretty much the same either way, but why couldn't they just say that they have to pass along the credit card charges rather than claiming that they have a "Built-In" discount for using cash? I'd much rather them call a "Spade a Spade" rather than try to disguise it as a discount for cash rather than a charge for the credit card. I guess that's just Marketing, but why the need to be deceptive about it? Frankly, it may be a good while before I return to this restaurant.
There seems to be a new trend of passing on credit... (show quote)


Study after study has shown that credit cards make money for businesses. People spend when they wouldn't ordinarily spend; they spend more; they tip more. This new trend is being penny wise and pound foolish. In NY, the law says that there must be one regular price. Restaurants can give a discount for cash, but they cannot charge more for credit cards. For years, many gas stations have charged five or ten cents more per gallon for using a CC. I don't go to them. The big sign will say, "CASH $3.59." If you use a credit card, the price will be higher. Technically, that doesn't seem to be legal.

https://www.syracuse.com/crime/2015/10/in_ny_its_illegal_for_stores_to_charge_more_for_credit_but_theres_an_easy_fix.html#:~:text=Vestal%2C%20NY%20%2D%2D%20It%27s%20easy,surcharges%20on%20credit%20card%20purchases.

Reply
May 25, 2023 09:37:13   #
JBRIII
 
Bison Bud wrote:
There seems to be a new trend of passing on credit card charges to the customer in the order of 3%. While I don't much care for this, I can also see how and why some businesses feel the need to do so and have paid it when necessary. However, I came across a bit of a new take on this at a local restaurant the other day that really rubbed me wrong. They posted a sign at the checkout saying: "We have a built in discount in our prices for cash purchases. If you choose to use a credit card instead of cash, then you will not receive this discount and a 3.5% charge will appear on your bill." I realize that it's pretty much the same either way, but why couldn't they just say that they have to pass along the credit card charges rather than claiming that they have a "Built-In" discount for using cash? I'd much rather them call a "Spade a Spade" rather than try to disguise it as a discount for cash rather than a charge for the credit card. I guess that's just Marketing, but why the need to be deceptive about it? Frankly, it may be a good while before I return to this restaurant.
There seems to be a new trend of passing on credit... (show quote)


You will need a lawyer to check this out, but as I remember there was/is a fed law (old, maybe 70's, early 80's) about how to do this. Something like you could/can offer discounts for cash, but not charge extra for a credit card.

Reply
May 25, 2023 09:39:43   #
Longshadow Loc: Audubon, PA, United States
 
Cards take a percentage of the store's net profit.
Who likes reduced profit?
Raise the price to cover the cost, then they make more on cash sales.
There's no chance of pleasing everyone with one single price,
But that's what people like, one price.
It's usually been one price for years all over, save gasoline, now people want to differentiate everything.

Reply
May 25, 2023 09:42:04   #
David Martin Loc: Cary, NC
 
jerryc41 wrote:
Study after study has shown that credit cards make money for businesses.

For some businesses, yes. Not for others, where the price is fixed for whatever reason. Think doctors' offices, health clinics, etc. The business loses 3-5% on every transaction with no way whatsoever to set prices higher. Why? because insurance will pay only what insurance will pay. Upping the price only punishes those without insurance.
jerryc41 wrote:
The big sign will say, "CASH $3.59." If you use a credit card, the price will be higher. Technically, that doesn't seem to be legal.

It is legal if the price is set to cover the extra 3-5% that goes to the credit card company.
So if an item sells for $10, the business will get $10 if paid by cash or check, but only $9.50 if paid by card.
Why not give a discount to those who pay cash? If you think about it, it's a more honest way of doing business. Passing the savings on to the cash-paying customer, rather than upping prices and keeping the extra 5% for the business.

Reply
 
 
May 25, 2023 09:48:57   #
Longshadow Loc: Audubon, PA, United States
 
Interesting that if the cost of resources goes up, they can pass that along with a higher price to cover the increased cost.
Isn't the card fee a resource that costs?

Reply
May 25, 2023 12:06:19   #
Linda From Maine Loc: Yakima, Washington
 
JBRIII wrote:
You will need a lawyer to check this out... Something like you could/can offer discounts for cash, but not charge extra for a credit card.
"Following a class-action lawsuit that businesses and merchants brought against Visa and Mastercard in response to such costs, in 2013 businesses won the ability to pass on the charge to customers."

One source is here. Google, not a lawyer

.

Reply
May 25, 2023 12:12:12   #
Longshadow Loc: Audubon, PA, United States
 
Carders v. cashers....
Another division.

Reply
May 25, 2023 13:59:50   #
jerryc41 Loc: Catskill Mts of NY
 
David Martin wrote:
If you think about it, it's a more honest way of doing business.


The rich didn't become rich by being honest. ๐Ÿ˜‹

Reply
 
 
May 25, 2023 14:37:25   #
Longshadow Loc: Audubon, PA, United States
 
jerryc41 wrote:
The rich didn't become rich by being honest. ๐Ÿ˜‹

Well, the ones that did took longer.

Reply
May 26, 2023 06:12:04   #
jerryc41 Loc: Catskill Mts of NY
 
Longshadow wrote:
Well, the ones that did took longer.



Reply
May 26, 2023 06:37:31   #
Canonuser Loc: UK and South Africa
 
In the U.K. legislation was introduced several years back prohibiting companies from adding any surcharge to the cost a buyer had to pay. Companies that increased the value of
Weโ€™re certainly moving quite rapidly to a virtually cashless society.
The big issue of course is that this change promotes the use of credit cards leaving many people with significant debts they often struggle to pay off.

Reply
May 26, 2023 06:54:50   #
jerryc41 Loc: Catskill Mts of NY
 
Canonuser wrote:
In the U.K. legislation was introduced several years back prohibiting companies from adding any surcharge to the cost a buyer had to pay. Companies that increased the value of
Weโ€™re certainly moving quite rapidly to a virtually cashless society.
The big issue of course is that this change promotes the use of credit cards leaving many people with significant debts they often struggle to pay off.


My son was in Manchester, England for two weeks, and he didn't spend a cent of cash.

Reply
Page 1 of 2 next>
If you want to reply, then register here. Registration is free and your account is created instantly, so you can post right away.
General Chit-Chat (non-photography talk)
UglyHedgehog.com - Forum
Copyright 2011-2024 Ugly Hedgehog, Inc.