Convenience Fee for CC Use (1 Viewer)

[parasaurolophus]

When retail places do that, they're basically telling you they don't want homeless or low-income people buying their goods. I won't support a business that does that.

I highly doubt this has anything to do with it. 

Why did airlines do this for in flight purchases?

Why have high end trendy restaurants been the most common places to do this?

The next time I see a homeless person on a plane complaining that they cant buy a beer, will be the first. Ever. For anybody. 

 

[rockaction]

I highly doubt this has anything to do with it. 

Why did airlines do this for in flight purchases?

Why have high end trendy restaurants been the most common places to do this?

The next time I see a homeless person on a plane complaining that they cant buy a beer, will be the first. Ever. For anybody.

Your local coffee shop or gas station -- and they are starting to implement this policy -- only accepting credit cards has a whole lot to do with it. There's no tracing coffee nor any other reason for it. 

 

[parasaurolophus]

Your local coffee shop or gas station -- and they are starting to implement this policy -- only accepting credit cards has a whole lot to do with it. There's no tracing coffee nor any other reason for it. 

The only gas stations going cashless are places that don't have a c-store or plan to close their c-store. The benefit would be less staff with pay at the pump exclusively. 

I guess I could see a coffee shop with really high prices and margins doing it, but I dont think homeless people coming in and buying lattes is really a problem these places are experiencing. 

 

[pollardsvision]

I haven't seen this yet, though a few of my favorite restaurants are cash only.

The most popular burger joint and bar here in town does this. What's funny is the owner uses CC's for all his expenses for the rewards. Smart, even if a little slimy.

I understand there may or may not be bigger reasons a business might choose to go this route (I won't speculate how another man handles his business), but I still don't think it makes sense. CC fees for a restaurant do suck, but they are still so beneficial. People clearly spend more with cards than they do cash. And there is major value in someone swiping a card, and that money going straight to the business bank account. The smaller the restaurant, the less that matters, of course. 

We're small enough where a lot of people think we might be cash only when they first come, but that won't happen.Never would consider the CC convenience fee.  I ain't trying to make it harder for people to give me money. 

And using CC's for business expenses does help offset some. We recoup about 25% of our CC processing expenses through rewards on the other side. 

Dang, this thread is reminding me I really need to get around to raising some prices.

 

[pollardsvision]

Unfortunately, we the system is are grooming our kids to never touch cash anymore. (edited for clarity)

My kids elementary school has a lunch card that he swipes. Mommy sends in a check and it gets added to his balance. Kid has no idea how much or how little is on it...just swipe and eat. 

Also, look at video games at places like Dave & Busters, all card based. Swipe, play. Swipe, play. 

Gone are the days when you would sit at the table counting quarters out of a ziplok bag to see if you could get that extra cookie or go to the arcade. Kids dont have that physical connection to money anymore and I think it will be a huge detriment when it comes to their future spending and saving habits.  

I have to be careful around my kids and using my CC b/c a few times when my son wants something and I tell him "No, we don't have the money for that" he replies, "Can't you just use your credit card?" 

Yeah, I love Dave Ramsey. Don't totally agree on the CC thing, but for most people, he's on point. Kids not knowing cash is a dangerous thing. 

I like the way he explains how dangerous is that when you pay with a card, the cashier gives you the item, along with your card back. So, it's not like you really lost anything. With cash, you hand them the cash, they give you the item, but that cash is now gone forever. And it hurts a little. Many adults can use CC's responsibly and still make this connection, but surely, kids will need some help making the connection.

Now, of course, cards aren't even necessary as people can just wave their magic phone to make a purchase.

It's safe to say consumer debt will continue to skyrocket.

 

[GroveDiesel]

I wonder what the costs for a business are for taking credit card payments versus cash? With cash, you have costs associated with counting tills, security, sending someone to the bank for deposits and getting change, etc. I wonder what those costs look like as a percentage per sale for different businesses.

If a business owner has figured out that credit card fees cost him a lot more than customers paying in cash, I don't have a problem with them charging that to customers who use a credit card as long as it is made known well in advance. Why should they build that cost into their price and make folks who use cash pay for a service they're not using? 

 

[parrot]

I wonder what the costs for a business are for taking credit card payments versus cash? With cash, you have costs associated with counting tills, security, sending someone to the bank for deposits and getting change, etc. I wonder what those costs look like as a percentage per sale for different businesses.

If a business owner has figured out that credit card fees cost him a lot more than customers paying in cash, I don't have a problem with them charging that to customers who use a credit card as long as it is made known well in advance. Why should they build that cost into their price and make folks who use cash pay for a service they're not using? 

My company owns some convenience stores.  Our CC processing fees are our biggest expense after labor, sometimes surpassing 50% of our labor cost for the month.  We've never really analyzed what cash handling costs, but I would be shocked if it was anything close to that.  We don't charge a CC fee to our customers.  

 

[GroveDiesel]

My company owns some convenience stores.  Our CC processing fees are our biggest expense after labor, sometimes surpassing 50% of our labor cost for the month.  We've never really analyzed what cash handling costs, but I would be shocked if it was anything close to that.  We don't charge a CC fee to our customers.  

That's crazy that it's that much.

But of course you charge a credit card fees, you just build it into your overall prices as part of your overhead.

 

[jon_mx]

That's crazy that it's that much.

But of course you charge a credit card fees, you just build it into your overall prices as part of your overhead.

Yes, but those costs are paid by people using cash also.   There is a reason credit card companies hardly care about fraud, they charge enough to cover those costs too.   Cryptocurrency solves a lot if these problems, which is part of the reason banks do not like them. 

 

[urbanhack]

My company owns some convenience stores.  Our CC processing fees are our biggest expense after labor, sometimes surpassing 50% of our labor cost for the month.  We've never really analyzed what cash handling costs, but I would be shocked if it was anything close to that.  We don't charge a CC fee to our customers.  

what are you paying 2, 2.5, 3%?

 

[urbanhack]

Yes, but those costs are paid by people using cash also.   There is a reason credit card companies hardly care about fraud, they charge enough to cover those costs too.   Cryptocurrency solves a lot if these problems, which is part of the reason banks do not like them. 

They don't any more that they pushed through PCI / PA-DSS - chip in card over the past 6 or 7 years.  The entire reason was to make them not liable for credit card fraud.  Everyone had to completely program their credit card integrations, etc.  We all spent millions and billions of dollars in upgrades to protect the credit card companies.

 

[GroveDiesel]

They don't any more that they pushed through PCI / PA-DSS - chip in card over the past 6 or 7 years.  The entire reason was to make them not liable for credit card fraud.  Everyone had to completely program their credit card integrations, etc.  We all spent millions and billions of dollars in upgrades to protect the credit card companies.

Except even chips aren't totally secure and with so many orders happening online now where the chip is irrelevant, fraud is still a huge issue.

 

[Gally]

Unfortunately, we the system is are grooming our kids to never touch cash anymore. (edited for clarity)

My kids elementary school has a lunch card that he swipes. Mommy sends in a check and it gets added to his balance. Kid has no idea how much or how little is on it...just swipe and eat. 

Also, look at video games at places like Dave & Busters, all card based. Swipe, play. Swipe, play. 

Gone are the days when you would sit at the table counting quarters out of a ziplok bag to see if you could get that extra cookie or go to the arcade. Kids dont have that physical connection to money anymore and I think it will be a huge detriment when it comes to their future spending and saving habits.  

I have to be careful around my kids and using my CC b/c a few times when my son wants something and I tell him "No, we don't have the money for that" he replies, "Can't you just use your credit card?" 

Agreed, but I have no control over how the school or D&B handles their cash-less system. 

I said "We' as in the way the world is set up now, not "me" personally. I fixed that in my postif it was confusing

Him answering me like that opened my eyes and now I'm very careful what I buy and how i buy it when he is around. 

I actually think this is a great way to start a conversation with your kid about how credit cards work and why you can't just buy what you want.  The world is going the way of the credit card and no cash so figuring out a way to explain how these things work, what the dangers are and how to properly manage your money.  Using the credit card and explaining to your kids as you are using it helps reinforce the right way. 

 

[ChainsawU]

Dude, just use cash. And let the vendor know you're using cash and you want to negotiate a better price. I negotiate that way all the time. Who seriously gets annoyed at CC processing fees? Sounds like the same person who gets annoyed at tipping a waiter. When you own a small business every fraction of a penny is crucial to your margin. And most likely you're working your ### off every day to make your business work. I totally get it. But I don't pay it. Use cash, bro. How can you be a grown man in America and not understand this concept. Also shows lack of empathy. Cash is king anyways.

 

[ChainsawU]

lol at "against the credit card's rules"

 

[Binky The Doormat]

My company owns some convenience stores.  Our CC processing fees are our biggest expense after labor, sometimes surpassing 50% of our labor cost for the month.  We've never really analyzed what cash handling costs, but I would be shocked if it was anything close to that.  We don't charge a CC fee to our customers.  

That's crazy that it's that much.

But of course you charge a credit card fees, you just build it into your overall prices as part of your overhead.

that would cut too far into their bath salts sales.  

 

[parrot]

what are you paying 2, 2.5, 3%?

It can depend on the card but roughly 2.25% overall.  

 

[parrot]

That's crazy that it's that much.

But of course you charge a credit card fees, you just build it into your overall prices as part of your overhead.

Yes, we recoup those fees, but like jon_mx pointed out we recoup them from everyone not just credit card purchasers.  We have no special credit card surcharges.