Credit card fee
 

My golf ladies went to Arnold Parker’s yesterday for lunch. We knew it was pricey but the food and service are usually good. When given our checks we put our credit cards to pay the bill. When the server returned with the copy to sign, we noticed the bill was higher. I called the server over and she stated that it was a 3.75% service charge for using a credit card and this was on the bottom of checks. We don’t usually look at the bottom of the check unless it has the gratuity suggestions on it. Beware of this on your checks.

I always pay cash in a restaurant. I won't allow my credit card to be taken into the back room where it can easily be photographed.

If restaurants start charging a fee to use a credit card, I think they will lose money because customers who pay with a credit card typically spend more money. 3.75 percent is too high. The average fee that businesses pay is about 2 percent, depending on their average transaction amount and the type of card used.

Takes away the advantage of the cash back rewards feature of our credit cards, and some. I got no problem with the charge as long as it is obviously disclosed, I’ll just pay cash since it would be cheaper after the charge. If places charge this fee AND won’t accept cash as a payment, that’s a different story, they would loose our business.

Interesting. The credit card fee seems to violate this Florida law.

Update: Although this Florida law is still current, a Federal court ruled that it is unconstitutional. So, it may be legal to charge the fee. Go figure.

Fla. Stat. §501.0117

(1) A seller or lessor in a sales or lease transaction may not impose a surcharge on the buyer or lessee for electing to use a credit card in lieu of payment by cash, check, or similar means, if the seller or lessor accepts payment by credit card. A surcharge is any additional amount imposed at the time of a sale or lease transaction by the seller or lessor that increases the charge to the buyer or lessee for the privilege of using a credit card to make payment. Charges imposed pursuant to approved state or federal tariffs are not considered to be a surcharge, and charges made under such tariffs are exempt from this section. A convenience fee imposed upon a student or family paying tuition, fees, or other student account charges by credit card to a William L. Boyd, IV, Florida resident access grant eligible institution, as defined in §1009.89, or to a private school, as defined in §1002.01, is not considered to be a surcharge and is exempt from this section if the amount of the convenience fee does not exceed the total cost charged by the credit card company to the institution. The term “credit card” includes those cards for which unpaid balances are payable on demand. This section does not apply to the offering of a discount for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card, if the discount is offered to all prospective customers.

(2) A person who violates the provisions of subsection (1) is guilty of a misdemeanor of the second degree, punishable as provided in §775.082 or §775.083.

Interesting, so I looked it up. The best discussion of the issue is HERE which is updated to Aug 2021, so a year old.

It says that Florida is not enforcing the law against this practice, as above. It also gives the rules which define how a merchant must notify the customer. These rules come from the card issuer, eg VISA and M/C.

Importantly the store may NOT charge a fee if you use a debit card, only a credit card. They may not profit from this fee, they may only recover up to the amount they pay the bank. The consumer must be notified in advance of purchase that such a fee will be imposed. This may be a sign at the entrance or a notice on the menu. The first notification cannot be on the bill you received after the meal.

The merchant must notify in writing the credit card company of their intention to impose the fee.

It is an interesting article, I don't know how accurate the representation of the rules are in the story. I don't think as a customer we have any way of knowing what the actual fees the bank has charged the restaurant may be, although 3.5% is at the very high end of what a restaurant might be paying. I have no idea how one would know if the bank received the required prior notification. As a customer you should be able to know if you saw a posted notice of this fee. And if you have a debit card and want to use it in this situation you will save a few dollars.

The 3.75 percent fee would be about double what I paid when I owned a retail business. But, I don't know what the current bank fees are. It seems too high though. Their online menu doesn't seem to say anything about the fee. Also, I wonder if they are able to distinguish between a credit card and a debit card in all cases.

The surcharges seem to be popping up more and more these days. I don't like the practice at all though I'm also not going to start carrying cash. It seems like a convenient way for a business to increase their prices without taking responsibility for it - "we can't help it, accepting credit cards is just too expensive."

Back in 2015 the fees for our total monthly bill were 2.5% of the total. I have no idea what the fees are today though I'm skeptical that they have increased 50%.

And than when they calculate a suggested tip for us will include that percentage.

AMEX charges them a fee, don't know about Visa or MC.

Needs to be properly disclosed on the menu or upon arrival. Just adding it without notice will invite legal action

No, it does not violate the law. It violates the agreement between the merchant and the credit card company as far as I can tell.

Same fee for debit cards???

Also I don't care when gas stations charge a different fee for cash over CC.
I sure it's posted some were, but if you miss it your SOL.

I'm calling Dan Newlin

All credit card companies charge the merchant fees for using their card, if the merchan.t passes these charges on it should be noted on your bill . The fee is based on the merchants volume of sales , higher sales lower fee .

They ALL charge a fee including diners club. I worked in retail and the percentage rate the card companies charge depends on how much business the retail store does....the higher the sales, the less they are charged. American Express charged the most. MC and Visa were the least 1-2%. Sounds like these businesses are trying to re-coup extra income.

Don't eat their or pay by cash which a lot of customer do.

We went to the Mexican restaurant on 441 and they did the same thing. Yet an other reason to carry cash

I've never seen a credit card fee on any check from a restaurant I've eaten at, just the meal tax, and we go out quite a bit. As far as Palmer goes, we haven't eaten at that particular restaurant in quite a while.

Cash helps the restaurant hide paying taxes.

Considering they now “for our convenience” suggest a minimum tip of 18%, have increased the meal cost and in some cases reduced the meal quality and selection, might as well do more cooking at home.

I went to a restaurant in Massachusetts that gave a 4% discount for paying with cash. Prices were the same as before they started offering the discount.

Actually, the amount the merchant pays is based on a complicated formula that includes the type of business, the sales volume, the average transaction amount, and the type of credit card used for each transaction. If a high percentage of customers use a rewards card, then the merchant's fee will increase. Low transaction amounts can also increase the fee.

The times are sure interesting.

Yes, and since 2008, banks are required to report the credit card activity of businesses to the IRS.

Even the IRS has said that many restaurants significantly underreport their income, especially independent restaurants who don't need to report income to a franchiser.

😂 😂 😂

Doesn’t it make more sense for a restaurant to up their prices for a credit card on the menu then off a “discount” to cash customers. That makes them look “better”!

Well Darrell’s Diner also has a “non cash” fee. We had a $22 breakfast bill with a $1.54 (7%) tax and then a $0.94 “fee”. Not a big thing. Dropped a $3.50 tip and walked out for under $30. Problem for me is that our “cashless society” gonna start costing us real soon.

I like it!! Discount sounds and feels a lot better than Surcharge!!

If they put it on the menu or post it prominently in restaurant guess it is ok but if the first time we see it is on the bill would bother me.

Perhaps dispute the additional charge with the credit card company and see where that gets you. If it's legal, at least they will be able to tell you how/why given the Florida statute that is 'not being enforced'.

Like telling a fat person that they are not fat. Their clothes are just too small.

The other related issue is the third party tip processors.

For example if you want to tip your hair dresser by credit card, the establishment runs your card through "tippy".....a third party processor. Tippy then charges 45 cents per transaction plus 2.5% of the total amount, against your card.

Hence the hair dresser does not pay the usual credit card transaction.....you do!!

Check the amount before you sign.

I don’t remember ever getting up charged there for using a cc

Another thing most places has Raised there food prices, and now pay for credit card fee,
Tips will go back to 15% ,

These tactics by any businessis poor business

Since credit cards are encouraging everyone to use their card and get cash back this must be the way businesses are trying to fight this? Banks are now even giving points or cash back on purchases using a debit card.

I have to pay my hair dresser an extra $5 if I use a credit or debit card. She owns the business. Another way of saying “I prefer cash” ?

Not for using a credit card.
Using a credit card to specifically pay the tip.

I’m willing to bet most businesses, especially restaurants, have these credit card fees already built into their prices so now they are just charging us double.

We went to Mom & Dads restaurant several months back. I went to pay the bill after the meal with a CC to find out after they rang it up that they added a surcharge…wasn’t aware of that. I did pay the bill but it should’ve been noted before they ran the CC.