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Thread: Credit Card Surcharges... Again?

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    Credit Card Surcharges... Again?

    Developments in two cases in the last week have the potential to change pricing practices everywhere from big box retailers to corner coffee shops — but whether they actually do remains to be seen.
    An Easing of Rules on Charges by Amex - Yahoo Finance

    Here we go again.... and not for the good of the consumer. For those of us who use credit cards as a means of keeping track of expenses, our expenses possibly just went up. Me, I'll be favoring those merchants who don't implement the surcharge, at least not as a visible difference in pricing.

    Interestingly enough, most business accounts at banks also charge for the handling and depositing of cash into the account, so why would they single out credit cards?
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    Re: Credit Card Surcharges... Again?

    I'm not a large fan of the plastic in the first place. Only use it when there is no other option.
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    Re: Credit Card Surcharges... Again?

    I'd never used a debit card til this past year and was stunned to find out that it often has a surcharge. I guess it's only a matter of time before even accepting cash will cost extra because someone has to drive it to the bank. USA businesses are surely learning how to nickel and dime the masses. I'd have some understanding if the banks weren't still making so much, such that if anyone were to eat those extra charges, it should be the banks, not the merchants.
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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by GottaGo View Post
    An Easing of Rules on Charges by Amex - Yahoo Finance

    Here we go again.... and not for the good of the consumer. For those of us who use credit cards as a means of keeping track of expenses, our expenses possibly just went up. Me, I'll be favoring those merchants who don't implement the surcharge, at least not as a visible difference in pricing.

    Interestingly enough, most business accounts at banks also charge for the handling and depositing of cash into the account, so why would they single out credit cards?
    You were already paying more.

    When a retailer opens their merchant statement for the first time and thinks to themselves "Gee, I just got whacked 2.4% for letting people use credit cards!" Their next thought is pretty much always "Well, if I raise prices by 3% that will cover my margin".

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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by GottaGo View Post
    An Easing of Rules on Charges by Amex - Yahoo Finance

    Here we go again.... and not for the good of the consumer. For those of us who use credit cards as a means of keeping track of expenses, our expenses possibly just went up. Me, I'll be favoring those merchants who don't implement the surcharge, at least not as a visible difference in pricing.

    Interestingly enough, most business accounts at banks also charge for the handling and depositing of cash into the account, so why would they single out credit cards?

    Heya GG. Looks like it will be with all of them soon enough. I am glad I don't use them anymore.

    On Thursday, a group of small and midsize businesses reached a settlement agreement with American Express in a class-action lawsuit. Under the agreement, which a judge must approve, Amex will allow surcharges to its cardholders as long as the same amount is levied on other credit and charge card users. It agreed to drop a measure that required debit card surcharges at the same level, according to a lawyer representing the company.....snip~

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    Re: Credit Card Surcharges... Again?

    The difference between a credit/debit card surcharge and a cash discount is not worth discussing. These cards have both advantages and disadvantages, over cash/checks but it should certainly be left up to the business how they establish their prices, discounts and service charges.
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by iacardsfan View Post
    I'm not a large fan of the plastic in the first place. Only use it when there is no other option.
    As I mentioned, I use credit cards for record keeping purposes. They are paid in full each month.

    Seeing the expense of credit cards from the merchant's end of it, there are up charges for every imaginable type of card, corporate, international, rewards cards, private issue cards, etc. There are even up charges for debit card use, so I'm not seeing why they singled out credit cards for the 'surcharge'
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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by Lutherf View Post
    You were already paying more.

    When a retailer opens their merchant statement for the first time and thinks to themselves "Gee, I just got whacked 2.4% for letting people use credit cards!" Their next thought is pretty much always "Well, if I raise prices by 3% that will cover my margin".
    But that is across the board when they raise prices in general.

    2.4%? That must be the big retailers, based on dollar volume. Most credit card fees (including surcharges for all the different types) run closer to 4% for the merchant.
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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by ttwtt78640 View Post
    The difference between a credit/debit card surcharge and a cash discount is not worth discussing. These cards have both advantages and disadvantages, over cash/checks but it should certainly be left up to the business how they establish their prices, discounts and service charges.
    I agree whole heartedly, however I make it a point in my business and dealings with other businesses to NOT charge or pay directly fee's on top of what I already negotiated. I demand and get generally flat rates with all costs added into the price, anything less as far as I am concerned is bull**** for me or my customers. I make it a point to deal with merchants and vendors whom practice transparent pricing, flat pricing for goods or services as practicable and with the exception of government mandated taxing which is made known upfront.
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    Re: Credit Card Surcharges... Again?

    Quote Originally Posted by GottaGo View Post
    But that is across the board when they raise prices in general.

    2.4%? That must be the big retailers, based on dollar volume. Most credit card fees (including surcharges for all the different types) run closer to 4% for the merchant.
    Yeah. The surcharge tends to go down with higher volume. I pay roughly 3.5% but if I have 500 transactions a year that's a lot. Most of my restaurant clients are in the low 2% range.

    As far as across the board price hikes...you bet! It's just good pricing policy because if you offer a lower price for paying cash then people will feel like they're getting screwed.

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