[JoMar]

Originally Posted by amassary

Just FYI, I own a retail store and the fees vary based on the card. All those rewards, the retailer pays them. So a bank card with no rewards may be 1% but a cash back rewards card may be as much as 3.5%. Even debit cards have a fee for the retailer.

Why complicate this thread with facts.......as you can tell by the posts those that know nothing believe their "opinion" is correct and the servers and owners should pay, or the guy down the street should pay, just not them

[Luggage]

It also goes against most credit card company policies by the Banks

[Ginnybugs]

Originally Posted by coralway

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

When I had a merchant account, I accepted Visa and MasterCard, and both charged a fee. I did not accept Discover because their merchant fee was much, much higher than Visa and MasterCard.

[The Mountaineer]

Originally Posted by Ral51Bjl

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.

Common practice for businesses all over America. Credit card company tacks on the 3.+% fee to transactions. Rather than absorb it, businesses tack on the transaction fee. Other businesses don't but simply charge you that much more for your food so that YOU and not them pay for YOUR credit card fee!

[retiredguy123]

Originally Posted by JoMar

Why complicate this thread with facts.......as you can tell by the posts those that know nothing believe their "opinion" is correct and the servers and owners should pay, or the guy down the street should pay, just not them

Should they also add a surcharge for the rent, the electric bill, washing the dishes, etc.?

I think it is good policy to not charge a credit card fee because it reduces crime by not requiring people to carry cash with them, and not requiring the employees to handle a lot of cash.

[retiredguy123]

Originally Posted by The Mountaineer

Common practice for businesses all over America. Credit card company tacks on the 3.+% fee to transactions. Rather than absorb it, businesses tack on the transaction fee. Other businesses don't but simply charge you that much more for your food so that YOU and not them pay for YOUR credit card fee!

Common practice? I use a credit card for almost everything I buy, and I can't remember ever paying an extra fee.

[golfing eagles]

Originally Posted by The Mountaineer

Common practice for businesses all over America. Credit card company tacks on the 3.+% fee to transactions. Rather than absorb it, businesses tack on the transaction fee. Other businesses don't but simply charge you that much more for your food so that YOU and not them pay for YOUR credit card fee!

It's not "your" credit card fee. It's the fee the credit card charges the merchant. The merchant can absorb it, pass it on, or build it into their price structure---all have their pros and cons. YOU can choose to use cash, or YOU can choose merchants who don't blatantly pass it on (but you won't know if it was already built into their price structure. Most fees are under 3%, some are higher. There are also laws governing these transactions as well as agreements between the merchant and the bank. Most of these appear to be poorly enforced, at best. Also, I'm not so sure how "common" it is---prior to the pandemic I rarely saw the fee added except at gas stations.

[Bill14564]

Originally Posted by tophcfa

Not true, if the price is the same for cash or credit card, it’s cheaper using our rewards credit card that gives us 2% cash back. If the establishment adds a fee of over 2% for paying with a credit card, it’s cheaper for us to pay with cash. It’s not that paying a percent or two more would make any difference to us, I just like getting the best value for our hard earned money.

If we eat the same meal then we should both pay the same price. Anything else is a penalty on the one who is made to pay more. The cost of accepting credit cards is a cost of doing business and should be factored into their advertised price.

Now, if they want to give me a discount for being 65+ years old, great! If they want to give me a discount for having a AAA card great! If they want to give me a discount for paying in cash, great! But all these are presented as discounts off the advertised price, not surcharges added onto the bill.

I like my points cards too but any benefit I get from using the card is between me and the bank. I wouldn't accept a store owner telling me that since I get 2% cash back he is going to add a 2% surcharge so that my bank account drops by the same amount as the guy paying cash.

I can think of three businesses that have added a credit card surcharge. I don't avoid them entirely but I don't visit them as often as I might without the surcharge. Is it legal? Maybe. Is it fair? Arguably. Does it improve the customer experience? No, it has the opposite effect. Is it a good idea? Who knows; some restaurants will say they cannot survive without the 3.5%, some customers will say they did not even notice the 3.5%, and some customers will take their business that don't have a surcharge. Business decision - we'll see how it goes.

[Bill14564]

Originally Posted by retiredguy123

Common practice? I use a credit card for almost everything I buy, and I can't remember ever paying an extra fee.

But you also regularly explain that you will NOT use a credit card in a restaurant. Since all the businesses where I can remember seeing this surcharge are restaurants it could explain why you've not seen it.

But no, it is not a common practice to add a surcharge. It seems to be popping up more frequently but still only fewer than five percent of the restaurants we patronize.

[retiredguy123]

Originally Posted by Bill14564

But you also regularly explain that you will NOT use a credit card in a restaurant. Since all the businesses where I can remember seeing this surcharge are restaurants it could explain why you've not seen it.

But no, it is not a common practice to add a surcharge. It seems to be popping up more frequently but still only fewer than five percent of the restaurants we patronize.

Correct. I would not know about restaurants. But, I use my credit card for everything else. Amazon, Publix, Walmart, Best Buy, Lowes, Home Depot, Walgreens, medical offices. No fee. I could go on and on. This is definitely not a common practice.

[Bonanza]

Originally Posted by retiredguy123

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.

If your credit card is indiscriminately used by someone, your credit card company stands behind you and you won't be charged. That is not a reason to not pay using your card.

If a restaurant begins charging a fee to use a card, I think it could be disastrous for them, particularly in a more expensive restaurant. They will quickly lose business.

[golfnut]

I think Arnold Parkers must be in Leesburg, it's not in The Villages.

Originally Posted by davefin

Where is Arnold Parker's anyway? LOL

[LynneH]

I just renewed my car's Florida license tag.
The payment options were:
Check in the mail- full price + tax
In person- full price + tax - 70¢
Credit card payment full price + tax + 2.75% surcharge

[CoachKandSportsguy]

So lets say, Visa charges 2%, Amex charges 4 % and less popular cards charge 6%. If the restaurant accepts all these, then lets say the average charge is 4%. So the restaurant charges 4% to cover a blend of card charges. .

Disclose it or not disclose it? If the restaurant tacks 4% onto every item, they don't have to disclose anything, everybody pays the same, like yesteryear. However, their published meal prices are higher, so in a very competitive environment, against a published meal price which doesn't include the cc markup, people will pick the cheaper meal. So now to combat published meal prices without the fee, the all in restaurant has to publish a lower price structure, and tack on the fee.

That is why the restaurants are saying everyone is doing it, because remember the United States' economic competitiveness: the cheapest advertised rates get the eyeballs and the customers.

Are the meals and dining experience the same? If i owned the business, i would be watching my overall
1) repeat customers
2) my meal per size per person
3) the menu items sold
4) my nightly specials success

but I like data analytics for competitive edge

[Bogie Shooter]

Originally Posted by Bill14564

But you also regularly explain that you will NOT use a credit card in a restaurant. Since all the businesses where I can remember seeing this surcharge are restaurants it could explain why you've not seen it.

But no, it is not a common practice to add a surcharge. It seems to be popping up more frequently but still only fewer than five percent of the restaurants we patronize.

Gotcha.............