No 7% isn't on the high end 7% is just a way to the merchant to pad his pocket.
The court decision limits surcharges to actual costs or a max of 4%. Any swiped merchant is going to pay <2% these days. Hell Joe Blow with 0 days business experience can get an account with Square (or a host of other providers) and swipe cards at <3%.
Topic: I was charged extra for using my credit card - page 2. (Read 2561 times)
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
This is normal. Businesses pay the credit card companies a fee when a card is used. Instead of absorbing the costs, it's usually passed on to the customer. Gas stations sometimes do the same thing.
A 7% increase does seem a little steep though...
7% isn't bad. Think about it, 1% on that purchase for the flat rate, plus 3% for the transaction fee. Then think about how much he has to pay in taxes when the cash just goes in his pocket. It costs him much more than 7% to have a paper trail.
I agree, 7% is on the high end of normal, but isn't out of reason. 4% is about average just for the interchange fees, not counting any other fees.
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
This is normal. Businesses pay the credit card companies a fee when a card is used. Instead of absorbing the costs, it's usually passed on to the customer. Gas stations sometimes do the same thing.
A 7% increase does seem a little steep though...
7% isn't bad. Think about it, 1% on that purchase for the flat rate, plus 3% for the transaction fee. Then think about how much he has to pay in taxes when the cash just goes in his pocket. It costs him much more than 7% to have a paper trail.
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
This is normal. Businesses pay the credit card companies a fee when a card is used. Instead of absorbing the costs, it's usually passed on to the customer. Gas stations sometimes do the same thing.
A 7% increase does seem a little steep though...
Theu used to do the same thing in the US in the 1980's and before. That ended with the vendor contracts I mentioned. We're likely to see it again soon, though. This is on reason that CC's are more popular with US citizens than in other countries, as much of the cost of useing a CC has been hidden from the consumer in the form of unnaturally higher prices.
This is good and healthy (in many ways). In my dayjob credit card purchases affect profits signifigantly, for example amex can take 4% off the top. Which is a lot when your working with goods where pricing is very competitive, for example groceries.
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
This is normal. Businesses pay the credit card companies a fee when a card is used. Instead of absorbing the costs, it's usually passed on to the customer. Gas stations sometimes do the same thing.
A 7% increase does seem a little steep though...
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
Yes, a group of retail businesses just won an anti-trust lawsuit against the CC companies, on the basis that the common practice that vendors must hide the 'interchange' costs from costumers amounted to market collusion. The court finally agreed. You'll see more of that going forward.
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
awesome, as they should. Why should consumers be forced to eat that cost in the form of higher prices. When everyone pays the same price no matter if they are paying with a card or with cash, this is effectively transfers wealth from credit card users and cash users to the credit card company in the form of higher prices for all (with the card user being partially or wholly compensated by how ever much utility he/she derives from using a card instead of cash). This form of discriminated on the part of store owners will help to foster an incentive structure that rewards efficiency and punishes waste, which makes everyone better off (except for the guy who owns the credit card company).
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
Was $37.50 the extra or was the extra the $2.50?
I went Kayaking the other day and rented a kayak.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
The charge was $35. But they said "if you're going to use a credit card we charge extra". I used my credit card and they charged $37.50.
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