NEW MERCHANT TAX/FEE?

[AQUAMAN]

On several recent occasions over the last 4-6 weeks while shopping for something from a private vendor, I was suddenly told a charge of 2% was being added to my purchase for the usage of a master card or visa credit card. WHAT? YES, the merchants I asked told me the charge was because I wasn't paying in cash or with a debit card. I quickly explained that the credit card means I am being trusted by the bank for paying on time and that's as good as gold, and I don't really carry that much cash, cause my credit cards do the cash talking for me, based on my credit limit. So, what's the DEAL? Well, all these years the merchant has had to incur bank charges of 2-3% for the option to their customers of using a credit card, it's not a big deal, never was, and was just considered a normal cost of doing business. Well, the merchants now are getting pretty darn zealous and greedy if you ask me. Not all are doing it yet, but as this thing snowballs, and more merchants pass on the habit to their competitors and friends, I think it will become the norm. Is anyone else experiencing this theft by vendors, and either way, what do you think of this new way to put a fee on everyone using a credit card? I certainly don't like it, but what can we do, cancel the sale, when you need something and don't have enough cash with you? Thanks.

[Sweater Cows!]

I have looked at the contracts from different service providers and figured that unless a person has a certain amount cleared in transactions each month then it will cost between $40 and 60$ a month just to have the service available, if there is not a single card used that month.. Plus from 1.6% every time a person runs a debit card up to 3.5% for an AMEX card, plus swipe fees if applicable.

I do not take cards now and have no interest in doing so in the future. It used to be that a business was not even allowed to tell customers about the card fees, why did the banks providing the service want the fees kept secret? That has recently changed but why was it so secret so long?

I had a guy one day try to tell me it doesn't cost anything to take the card, I explained the truth. He was surprised it cost a business money to take a card.

I will avoid the acceptance of cards as long as humanly possible as I only get 1 person every month or two who asks about using one and I have other personal reasons for being anti-card like it is a way to dig deeper in debt and by not taking them I help people not buy what they don't need.(a bit selfless for a business person but that is me)

[XLFD]

I would also explain to the customer that the money you save by not accepting cards get passed back to them in lower charges for goods and services.  Which is accurate, I'm sure.  Credit cards are a great option but if every merchant passed a discount onto cash-paying customers of 2-4%, you might see a migration back to checks, debit cards, and cold hard cash, which might not be a bad thing.

[Lisa O'Brien]

I'm curious how is gas advertised is Ludington, out here on the sign it states the cash price. It's generally .10c more a gallon for paying with a card. I know credit card merchants have been steadily increasing their fee's over the last couple of years. 

[AQUAMAN]

Thanks to all for the valuable input, and a special thanks to Larry for posting what I thought and have believed to be true all my adult life. These merchants then are breaking the rules/law by charging me that 2% fee, which like I and others see as a normal cost of doing business, and as such, should be in their profits to begin with. Thusly, I shall print what Larry's link states, and present this to the next vendors that try to rip me off. It's good to know this now, because I see it snowballing out of control, once one gets away with it, they all follow suit accordingly, and it's not in agreements for them to do this. I didn't think so either, but, the way things are changing fast and furious these days, I kinda let it slide, but with a sour taste in my mouth for that business. I like starting threads like this, they get more to the root of daily human problems, and give us Torchers a break from the political scene for a change too. Thanks all.

[Willy]

My solution is not to use a credit card only when it is absolutely necessary. A lot of people are so casual about using a card that they fail to recognize how deeply in debt they are going. It takes self control and maybe a credit card shredder.

[AQUAMAN]

Willy, for all intents and purposes, applying this logic to the masses, esp. those whom consume more than they ever produce, this holds true. However, I'm from the old school, where Pappy said if you don't have the money in the bank account ahead of spending it, you don't need it yet, be patient.  I don't need to carry hundreds, nor thousands of dollars around in my wallet, taking the obvious risk of being conked over the head, or worse, to get my money. When all is said and done, credit card company's hate me and my kind, cause they can't get that usurious interest on my account for their greed, and some of recent, have outright canceled my card for such reasoning, go figure, being timely and honest doesn't always pay off these days, but it's supposed to.

[Willy]

I have a relative that works in the credit card industry and they told me that people who keep a modest balance on their care and who pay on time to avoid late fees are called "deadbeats". Things have sure gotten twisted around. The card companies love all the extra charges they can rake in and if a customer is being responsible then the company isn't making a lot of money off them.