[alwann]

Originally Posted by DAVES

Never know what you will learn here. Why charge me 3% when you are not charged 3%. Business, you go into business to make money. Restaurant expenses cost of ingredients, staff, rent, insurance, equipment etc etc etc.

I used to sell to retail stores. Not an expert bust USED TO BE your contract with a credit card said you could not offer a discount for CASH. Expense of taking a credit card can be a huge part of the profit. REMINDER, you are in business for the profit not turning money. Yes I am aware of washing money and yes I was aware some were doing that. Not sure but seems it has changed. I see people offering to sell products and charging SHOWING plus 2-3% if you use a credit card

DEBIT CARD? Truth I've never had one, We have good credit and never carry an unpaid balance.

You learned a lesson and thanks others did as well. Three percent of a hundred dollars is three dollars. Ben Franklin said watch the pennies and the dollars will take care of themselves. Irony? He never knew. Pennies have been discontinued-they had half cents
Interesting but sort of off topic.

What's your opinion about this? I'm a dermatology patient at a practice that demands a 3% surcharge if I use a credit card to pay my co-pay. I don't know what the health insurance people would say about this, but it sure seems unethical if not illegal.

[retiredguy123]

Originally Posted by alwann

What's your opinion about this? I'm a dermatology patient at a practice that demands a 3% surcharge if I use a credit card to pay my co-pay. I don't know what the health insurance people would say about this, but it sure seems unethical if not illegal.

It is not illegal. Also, not unethical, in my opinion.

Lake Eye charges the same fee.

[Pugchief]

Originally Posted by alwann

What's your opinion about this? I'm a dermatology patient at a practice that demands a 3% surcharge if I use a credit card to pay my co-pay. I don't know what the health insurance people would say about this, but it sure seems unethical if not illegal.

What makes it "unethical"? The practice eats the same ~3% fee as a restaurant.

[retiredguy123]

Originally Posted by alwann

What's your opinion about this? I'm a dermatology patient at a practice that demands a 3% surcharge if I use a credit card to pay my co-pay. I don't know what the health insurance people would say about this, but it sure seems unethical if not illegal.

Interesting. If the merchant pays a 3 percent fee to accept a credit card, 2 percent goes to the customer as a reward or cash back, and 1 percent goes to the bank. The merchant benefits because they are guaranteed a payment even if the customer fails to pay the credit card bill. The bank makes money by charging a high interest rate to customers who pay late. If all merchants start charging a 3 percent fee to the customer, the banks will need to rethink the credit card rewards because customers with a good cash flow situation will stop using credit cards, and the only customers left will be the deadbeats who cannot make the monthly payments. As I see it, the only winner here is the merchant who is getting guaranteed payments for free even if the customer stiffs the bank. It really is not fair for the merchant to collect their bank fee from the customer because they are getting guaranteed payments at no cost to them.

[Pugchief]

Originally Posted by retiredguy123

If the merchant pays a 3 percent fee to accept a credit card, 2 percent goes to the customer as a reward or cash back, and 1 percent goes to the bank.

Basically, yes, except most customers don't get 2%. Wild speculation is that the average is closer to 1% (some have zero rebate, some have 2%, some might even be as high as 5% on select purchases). So the bank probably makes more than 1% on average.

The merchant benefits because they are guaranteed a payment even if the customer fails to pay the credit card bill.

Nothing is guaranteed. Customer can dispute the charge, or the bank can do a chargeback for any number of reasons.

The bank makes money by charging a high interest rate to customers who pay late.

This is the largest source of bank revenue. Late payment fees and interest on balances that aren't paid in full at the end of the cycle.

If all merchants start charging a 3 percent fee to the customer, the banks will need to rethink the credit card rewards because customers with a good cash flow situation will stop using credit cards, and the only customers left will be the deadbeats who cannot make the monthly payments.

Maybe, but doubtful IMO. We've all been trained to use cards and now with ApplePay/GooglePay, it's just too convenient not to carry cash.

It really is not fair for the merchant to collect their bank fee from the customer because they are getting guaranteed payments at no cost to them.

Even if we stipulate that cards "guarantee" the payment, so does cash. So I'm not sure your argument carries water.

[retiredguy123]

Originally Posted by Pugchief

Basically, yes, except most customers don't get 2%. Wild speculation is that the average is closer to 1% (some have zero rebate, some have 2%, some might even be as high as 5% on select purchases). So the bank probably makes more than 1% on average.



Nothing is guaranteed. Customer can dispute the charge, or the bank can do a chargeback for any number of reasons.



This is the largest source of bank revenue. Late payment fees and interest on balances that aren't paid in full at the end of the cycle.



Maybe, but doubtful IMO. We've all been trained to use cards and now with ApplePay/GooglePay, it's just too convenient not to carry cash.




Even if we stipulate that cards "guarantee" the payment, so does cash. So I'm not sure your argument carries water.

Just a few points:

If you are not getting 2 percent on all purchases, get another card.

If they start charging a 3 percent fee to use a credit card, I will stop using the card.

If a customer uses a credit card, the bank guarantees the payment as long as the merchant complies with the transaction requirements.

You cannot demand cash from a customer who doesn't have cash. That is another benefit to the merchant.

I have not been trained to use cards.

[shut the front door]

Originally Posted by alwann

What's your opinion about this? I'm a dermatology patient at a practice that demands a 3% surcharge if I use a credit card to pay my co-pay. I don't know what the health insurance people would say about this, but it sure seems unethical if not illegal.

My PC won't let me pay a $10 copay with cash. Only charge.

[Pugchief]

Originally Posted by shut the front door

My PC won't let me pay a $10 copay with cash. Only charge.

Anecdotal.

[Pugchief]

Originally Posted by retiredguy123

If you are not getting 2 percent on all purchases, get another card.

Not everyone has your requirements or your savvy. I get 2-5%, but we are the minority.

You cannot demand cash from a customer who doesn't have cash.

No merchant is forced to accept cards. You can demand cash, but you may lose a customer.

[retiredguy123]

Originally Posted by Pugchief

Not everyone has your requirements or your savvy. I get 2-5%, but we are the minority.




No merchant is forced to accept cards. You can demand cash, but you may lose a customer.

I agree. I think that, if merchants stopped accepting credit cards, they would lose so much business that many of them would go out of business. But, instead of thanking the banks, they are demanding that the customers pay a surcharge to cover their bank fees. It seems backwards to me.

I read that, when McDonalds first started accepting credit cards, their average transaction amount increased by 50 percent because people were inclined to spend more money.