My card fees are now about 3.5% maybe because of all the cards giving cash back. I heard that in Canada and other countries the mechant fees are much less. Some small shops in Nashville will charge less if you pay with cash.

The dealership I typically use has done this for over a year. They have signs in the service and the parts area stating that they will do this to credit card transactions and they state it when you drop your car off for service.

Honestly, I wish more businesses would start doing this. As several members have stated they fees add up. Someone willing to pay cash shouldn’t have to subsidize people who want the convenience of paying by credit card.

Large places should be able to absorb that fee, I give a discount for cash when I sell firearms. With low volume CC fees are high for me. I do not recall the Toyota dealers I go to adding that fee. Which should be worded as cash discount since companies technically cannot charge more for CC use.

What's really crazy is that CC have this much return on their money. Think of the time it takes the mere mortal to gain 8% on their money in a retirement account! Here, the fee is an instant increase in their funds. Billions of transaction a day? There is a word for this.

The Toyota dealer near me doesn't charge a CC fee for service, at least not yet.

I put $10K down on the new truck.

I asked Dan-Dan the Finance Man "Check or Credit Card" for the payment and he said "Hey, you get points on your card, right? Go for it!"

No extra fee and $100 back on the card? You betcha.

Local mechanic and the Town Office do, but they're up front about it. Cash or check for them.

I’m pretty jaded when it comes to car dealers but I’ll still say it anyhow. The dealers must need another new house, vacation, boat, etc.

Must have been a coincidence that each time we (meaning employees) received pay plan reviews, a “temporary” suspension of a company benefit like the dealers contributing to our 401k’s, a change or suspension in employee discounts, the dealer would give himself another perk.

Both the motorcycle dealer and Honda car dealer charge 3% extra for cc and it makes perfect sense. Our cc companies skim 2-3% off each transaction for themselves and to offer us "cash back". Somebody has to pay for it.

In addition both dealerships are in city limits which have their own 1% sales tax in addition to the 6% state sales tax.

So you pay 10% extra for sales taxes and credit card fees. And don't forget the shop fee!

quote:

Originally posted by Anush:
My card fees are now about 3.5% maybe because of all the cards giving cash back. I heard that in Canada and other countries the mechant fees are much less. Some small shops in Nashville will charge less if you pay with cash.

Maybe I'll go back to writing 30-40 checks a month like in the old days...

I used to sit down and pay bills on a Saturday, mailing checks. Now, it's on line, and much of it auto-pay from the bank account.

It is convenient to have all of my spending on one card to review.

But, the CC companies aren't going to charge less to the merchants until a significant number of people push back by not using the cards. I'm happy to give up my 1% cash back in return for saving 3-4% on the purchase.

Lest we forget the bastard gas stations charge $.10 a gal. more for credit or debit card.

MANY places where we live charge the extra CC fee. Restaurants, retail, service types, etc. We have learned to ask before we pay if they charge the fee and if they do we pay cash.

This is something we started experiencing about 3-years ago when we moved to Arizona.

Many credit cards pay 2-3% cash back, or even more. So credit card fees to the merchant have increased. But American Express charged me 3% 40 years ago, and I still took the card.

What has really changed is the salesmanship of the credit card processors, who realized it was an easy sale to talk to an owner and say “we have a plan where you’ll no longer pay any fees”. Pretty easy sell for small businesses.

It’s still bullshit, as yes those fees add up, but so does my electricity, insurance, etc. I don’t charge my customers a line item for insurance, and I shouldn’t charge them for credit card fees either. People do it because they can get away with it, and it’s bullshit.

quote:

Originally posted by nosticks:
Lest we forget the bastard gas stations charge $.10 a gal. more for credit or debit card.

Especially when it’s their own branded Visa/Mastercard credit card. Ten cents a gallon plus finance charges if you carry a balance over on the card.

Only place I've run into this was, of ALL places, a Porsche dealership. Really? Do you SEE the prices on this invoice??

Just like everything from restaurants to appliances, just work that shit into the price and you wouldn't have pissed me off.

quote:

Originally posted by Anush:
My card fees are now about 3.5% maybe because of all the cards giving cash back. I heard that in Canada and other countries the mechant fees are much less. Some small shops in Nashville will charge less if you pay with cash.

Seems to be the SOP with the US vs the rest of the world. We have to pay more to make up for the countries that actually protect their citizens and don't allow this.

Same with prescription drugs. Hans in Germany only pays $10 for his heart pills because the German government won't allow the pharma company to charge him $100 like American Harry does for the same exact medication.

If I was a merchant, I think I'd just quietly raise prices to cover the fee.

When people write a check that gets verified through one of those services, that costs money too. If you don't use those verification services and a check bounces, the bank charges a returned check fee in addition to the money you lost.

When people pay cash, unless you're handing it to the owner of a small business, there are risks associated with that cash, along with more accounting and handling costs.

quote:

I don’t charge my customers a line item for insurance, and I shouldn’t charge them for credit card fees either.

All of your customers benefit from your insurance. All of your customers benefit from your electricity. All of your customers benefit from your website.

Only your credit card users benefit from your ability to take a credit card. Why should cash customers subsidize your credit customers?

quote:

Originally posted by RogueJSK:

With the last car I bought I went in expecting to write a check for the remainder after trade-in. The dealership asked if I was going to pay by check or credit card. It had never occurred to me to use a credit card, so I inquired further.

They said they'll do the first $5000 on a credit card with no fee

Similar here. Toyota dealer allowed up to $5,000; Ford and Cadillac dealers allowed $7,000.

Customers often think they are getting cash back, for "nothing". So they always use their card to pay. The merchant is getting burned, nothing is for free.

I blame the CC companies mostly, but also the clueless customers. I am self employed, and give a cash discount. A repair shop I know realized that they paid $35,000 in CC fees one year. Now they give a cash/check discount.

quote:

Originally posted by nosticks:
Lest we forget the bastard gas stations charge $.10 a gal. more for credit or debit card.

And some places, like Costco gas stations, don't offer an option to pay cash.