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Credit Card Companies raising rates on long time multi million dollar clients
June 13, 2024, 02:41 PM
DzozerCredit Card Companies raising rates on long time multi million dollar clients
I was at the Ford dealer today and when I went to pay they asked me if I was using Credit or Debit, as they now had to charge 3% to use Credit cards. I asked the guy why the sudden change - he said that Ford used to be charged .8 % due to their volumes, but that the CC companies are now upping the rates regardless of the volume. Ford considered the lower rate as just the cost of doing business, but now they have decided to pass it along to the customer directly instead of hiding it in pricing schemes. I like that as I would rather have the choice.
I wonder if all the fraud that the CC companies just seem to write off is catching up with them?
'veritas non verba magistri' June 13, 2024, 02:50 PM
nhtagmemberMy dentist is now charging about 3% to use either a debit or credit card.
So I had them do all the work yesterday and then gave them cash. It took them quite awhile to make the change. I’m hoping if enough people force them to bring their checkout system to a halt to make proper change then perhaps they will drop the nonsense.
The alternative is to take business elsewhere. But the medical industry seems to think they have everyone by the short curlies
June 13, 2024, 02:54 PM
WaterburyBobTen years ago I tried to pay $25K for the balance on a new car.
The dealer wouldn't do it - they didn't want to lose that much to the credit card percentage.
The most they would take on a card was $3K.
"If Gun Control worked, Chicago would look like Mayberry, not Thunderdome" - Cam Edwards
June 13, 2024, 03:30 PM
PASigEveryone is now charging extra for using a credit card it seems. 3-5%
I foresee a big smackdown of these credit card companies coming.
June 13, 2024, 03:31 PM
parabellumquote:
Originally posted by PASig:
Everyone is now charging extra for using a credit card it seems.
That's far from true.
June 13, 2024, 03:38 PM
frayedendsIt was my understanding that the big credit companies like Visa and Mastercard had rules that a vendor could not charge a fee to use the card. Some got around that by offering a "cash discount". I know my local gun stores do that.
These go to eleven.
June 13, 2024, 04:09 PM
V-Tailquote:
Originally posted by WaterburyBob:
Ten years ago I tried to pay $25K for the balance on a new car.
The dealer wouldn't do it - they didn't want to lose that much to the credit card percentage.
The most they would take on a card was $3K.
When my wife bought her RAV4, she was just going to write a check to pay for it. The paperwork guy at the Toyota dealer told her that she could put up to $5,000 on her cash-back card, so she did.
Similarly, when I bought my Escape, the Ford dealer accepted $7,000 on my cash-back card.
הרחפת שלי מלאה בצלופחים June 13, 2024, 04:15 PM
V-Tailquote:
Originally posted by frayedends:
It was my understanding that the big credit companies like Visa and Mastercard had rules that a vendor could not charge a fee to use the card.
That was true years ago, but I believe that policy has been rescinded.
I checked with VISA when a local Roadside Service company added an exorbitant credit card fee to a bill for changing a tire. VISA told me that the surcharge could not exceed the actual fee that VISA charged to the merchant. I emailed the merchant with that information from VISA and told the merchant that they needed to reduce the surcharge that they had billed me, to no more than the VISA fee in order to be in compliance with their merchant agreement. They gave me a nastily worded reply, but they refunded the complete surcharge; they didn't even retain the amount that they could have kept.
הרחפת שלי מלאה בצלופחים June 13, 2024, 04:22 PM
a1abdjquote:
It was my understanding that the big credit companies like Visa and Mastercard had rules that a vendor could not charge a fee to use the card. Some got around that by offering a "cash discount". I know my local gun stores do that.
2013 class action lawsuit changed all of that, and it's currently only illegal in a few states.
Outside of that, what's wrong with somebody who's accepting payment for goods or services adjusting those charges based upon your payment method? Restaurants are really good examples. You get your bill and pay with a CC including tip. The restaurant then has to pay 3% for what you owe them, 3% for the tip that goes to your waiter, and 3% for the taxes that go to the government (who by the way, also charges to use a CC to pay any monies owed to them).
June 13, 2024, 04:26 PM
1967GoatRight, but many also now don't want to accept cash. Cashless is the new "thing".

June 13, 2024, 04:30 PM
Rick LeeUnless they're giving you a cash discount, you are already paying the merchant fees. They're built into the prices for everyone. If they need to raise their prices, then raise the prices. I really don't care to read line items. I care about my out-the-door price.
Freewill Firearms
07 FFL, Class 2 SOT
June 13, 2024, 04:47 PM
MoosehornManquote:
Originally posted by 1967Goat:
Right, but many also now don't want to accept cash. Cashless is the new "thing".
If they don,t take cash and try to charge me 3% fee it will be the last time I go there.
“Let us dare to read, think, speak and write.”
John Adams
June 13, 2024, 04:55 PM
a1abdjquote:
If they don,t take cash and try to charge me 3% fee it will be the last time I go there.
They already are, they just aren't listing it as a separate charge.
quote:
merchant fees. They're built into the prices for everyone.
That's not exactly true. I'll generally accept a credit card without issue for a small charge up to a few hundred dollars. But let's say a get a customer that's spending $20,000. That's going to cost me $600. Why should I be expected eat that, or raise my prices for all of my cash/check customers to make up for it?
The credit card user is generating the expense, so why shouldn't the credit card user be responsible for it?
Let me give you another example unrelated to credit cards. When I do out of town work it is quoted at a rate plus expenses. Let's say there's toll roads to get to you. You pay those tolls, I don't mark up my rates to spread my toll expenses to all of my other customers.
June 13, 2024, 05:53 PM
220-9erIf I was a business doing a lot of smaller transactions and handling cash, I'd rather eat the three percent and have the money go straight into my account without the worries (mistakes & theft) and costs in employee time as that would be less costly to me.
In my business, I have many sales that are high dollar but low margin so I only take checks. The three percent would really hurt.
___________________________
Avoid buying ChiCom/CCP products whenever possible.
June 13, 2024, 06:07 PM
SW_SigIn July 2022, I charged almost $12,000 on my cash back credit card for a new motorcycle.
The price was the same for cash, check, or credit card.
June 14, 2024, 06:24 AM
bendablequote:
The price was the same for cash, check, or credit card.
From your perspective, as far as you know.
Safety, Situational Awareness and proficiency.
Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
June 14, 2024, 06:34 AM
bendableI watched a few you tubes that featured very very well healed people complaining that their banks wouldn't allow them to remove large sums of cash from their accounts.
Some wanted $60,000 some wanted $160,000.
So according to them,
Cash on hand has once again become a necessity .
When ever they go by their bank , they pull in and take out 7,8, or $9,000.00 and store it "someplace".
For future use sometimes once a week , sometimes four times a week at different locations.
Safety, Situational Awareness and proficiency.
Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
June 14, 2024, 08:12 AM
architectquote:
Originally posted by bendable:
I watched a few you tubes that featured very very well healed people complaining that their banks wouldn't allow them to remove large sums of cash from their accounts.
Some wanted $60,000 some wanted $160,000.
So according to them,
Cash on hand has once again become a necessity .
When ever they go by their bank , they pull in and take out 7,8, or $9,000.00 and store it "someplace".
For future use sometimes once a week , sometimes four times a week at different locations.
Banks don't usually store a lot of cash at each branch any more, just enough to cover an average day's withdrawals, plus what's in the ATM. If you wish to make a large withdrawal, the want you to arrange it ahead of time and (maybe) go to a particular branch to execute the transaction.
June 14, 2024, 08:36 AM
a1abdjquote:
Banks don't usually store a lot of cash at each branch any more
Imagine how interesting that will be the day China or some other terrorist group goes after the power grid or the internet.
The bank run will last 5 minutes before they're out of money and can't get any more.
June 14, 2024, 09:07 PM
1flynDOIt will be immediate. Not 5 min. No paper copies anymore. No passbooks. lol
Most of us keep cash at home