Cashless / Credit Card Fee - A New One for Me

[tvguy]

I saw others mention that about their states. But in my case they are run and staffed by state employees.

We have both in California. State run offices. And there are private companies that are authorized to do most types of transactions. AAA Insurance being the biggest private company, but there others. They charge an additional fee. When I bought a classic car that had been off the road for 35 years, I discovered they are popular with people who deal in classic cars because they will allow you to transfer title on a car, without requiring you to register it, or pay a few to list it as Non-operational. I went to DMV to register it, and it has 35 years back unpaid registration. Various owners over 35 years bought and sold it with out registering it, or paying the $21 a year non-op fee. It wasn't have to clear up, as I have proof I had only owned the car for a few days, but the DMV clerk was trying to figure out how this was allowed to happen. Only later did I learn this is common with classic or collector cars.

 

[disneychrista]

All of the POS processors that we have talked with, had the option to charge a CC fee inside their program and it was up to us whether or not we wanted to pass the CC fee onto our customers. They hide it as a "Convenience fee", but it is in fact to pass on the CC fees.

In my experience convenience fees are paid directly to the CC processor, not the business. At least that is how it works for us. We don't charge a fee to use a credit card but our processor does. We do not see that money it goes directly to them. The term is STUPID but it is the term they use.

 

[Magical2017]

Maybe they charge a fee for credit cards only. I think it is illegal to charge a surcharge on debit cards. I try to avoid places with these fees but they are becoming more and more popular.

 

[LoveSpringsteen]

I’ve noticed more and more businesses in my area of Ohio are now charging a fee to use your credit card for payment. I’m assuming things have changed, but when I established credit card payments for my company about 20 years ago, our contract said we could not charge a fee to customers to use a card and we also couldn’t change pricing for cash-paying customers.

I would be annoyed if an establishment was cashless and charged a fee to accept card payments.

 

[Kathryn Merteuil]

It seems like quite the conundrum, yet I am not even surprised anymore.

 

[leebee]

It seems like quite the conundrum, yet I am not even surprised anymore.

Yup... we have become a "stick it to the little guy while the rich get richer" society, it seems. Nothing surprises me anymore.

 

[ronandannette]

None of the other electronic forms of payment appeared to be an option at this restaurant. At least nothing was mentioned on the menu nor mentioned by our server.

I've not seen a restaurant (at least not a normal sit down establishment) offer ePayment as an option so far (Venmo, PayPal, Zelle, etc.). Has anyone seen this at a restaurant?

No. Even here in Canada where e-transfer directly out of out bank accounts (with no special app or fee) is extremely common and takes only seconds, I’ve never been to any restaurant or retail store that accepts it at point-of-sale.

 

[AppleDumpling]

Some restaurants around here now list two prices for each item on the menu, one for cash and one for credit.

I’ve yet to come across a restaurant that doesn’t accept cash. In fact, I’ve been to a few that are the opposite; they only accept cash, and some have an ATM on the premises.

 

[tony67]

I don’t know anyone who charges their property taxes here, it would cost a lot in fees.

Yeah it can be ridiculous - that said I've been able to do some things around CC offers so it was more than worthwhile to pay that fee and come out well ahead.

But 90% of the time its not worth it.

 

[tony67]

some have an ATM on the premises.

Be very careful with this places - sometimes those ATMS are set up with a shady network and crazy fees - and even with some of those no fee cards they get you.

I've run into this in a few places in Europe where they don't tell you till the end of the meal they only take cash - and they are in places where everyone takes a CC. I saw many tourists at the end of the night dealing with this and being pretty annoyed - luckily I sort of expect these types of things from previous lessons and always carry some hidden cash to cover a meal just in case. Also in Europe they will have a very bad exchange rate so you have to watch for that as well.

 

[Mackenzie Click-Mickelson]

Also in Europe they will have a very bad exchange rate so you have to watch for that as well.

It's also something that you're better off if you use a CC to pay to have it converted at POS to the local currency (this is the same elsewhere not just Europe). We've only run into a one off situation where the machine defaulted to local currency whereas it's more common to either specify to the person doing the card machine or to press the button if the machine is in front of you to whatever the local currency is.

 

[tvguy]

Yup... we have become a "stick it to the little guy while the rich get richer" society, it seems. Nothing surprises me anymore.

Not really. The culprit in all this are all those rewards people get with their cards. The CARD company isn't paying those rewards, the MERCHANT is. And they got fed up. The reality is, if you have a card that pays rewards, you will get at least some of that fee back. There is no free lunch, as the saying goes.

 

[Turn the Page]

Some restaurants around here now list two prices for each item on the menu, one for cash and one for credit.

I’ve yet to come across a restaurant that doesn’t accept cash. In fact, I’ve been to a few that are the opposite; they only accept cash, and some have an ATM on the premises.

We have a large ski resort here that is totally cashless. Several accommodation types, ski hill, numerous bars and restaurants, a spa, water park. No cash at all. It's very odd

 

[tvguy]

We have a large ski resort here that is totally cashless. Several accommodation types, ski hill, numerous bars and restaurants, a spa, water park. No cash at all. It's very odd

But do they levee an additional fee for taking a credit card like is the case with the OP?

 

[tvguy]

Some restaurants around here now list two prices for each item on the menu, one for cash and one for credit.

I’ve yet to come across a restaurant that doesn’t accept cash. In fact, I’ve been to a few that are the opposite; they only accept cash, and some have an ATM on the premises.

Only restaurant I have encountered that was credit card only was in Monterey, California. They had it clearly posted on the door, around the restaurant, and on the menus and the server mentioned it when taking our order.
I have run into cash and credit pricing, fee for using credit cards and cash only.

 

[Turn the Page]

But do they levee an additional fee for taking a credit card like is the case with the OP?

I don't know. I was simply responding to the post I quoted where the PP said they had never seen a restuarant that didn't accept cash.

 

[kdonnel]

Not really. The culprit in all this are all those rewards people get with their cards. The CARD company isn't paying those rewards, the MERCHANT is. And they got fed up. The reality is, if you have a card that pays rewards, you will get at least some of that fee back. There is no free lunch, as the saying goes.

The merchant is not paying for the rewards.

There is no merchant in the world who has negotiated a credit card by credit card contract where they pay less for accepting a non rewards credit card.

The merchant is paying a contracted transaction fee/percentage of each transaction. It does not matter if the card is one with rewards or without, the cost of accepting the card is the same.

Merchants also pass on costs of business to the consumer.

Apparently some like to highlight specific business costs, calling them out on the menu which alienates some customers, while others treat credit card fees the same as any other business costs like labor and build it into the cost of their product.

 

[tvguy]

The merchant is not paying for the rewards.

There is no merchant in the world who has negotiated a credit card by credit card contract where they pay less for accepting a non rewards credit card.

The merchant is paying a contracted transaction fee/percentage of each transaction. It does not matter if the card is one with rewards or without, the cost of accepting the card is the same.

Merchants also pass on costs of business to the consumer.

Apparently some like to highlight specific business costs, calling them out on the menu which alienates some customers, while others treat credit card fees the same as any other business costs like labor and build it into the cost of their product.

The guy who owns the local gourmet hamburger stand says the fee he pays for taking a credit card varies depending on the card. Most are 3%, but some of the high rewards cards are as much as 6%.
According to this, it is called tiered pricing.
https://www.swipesum.com/insights/merchant-services-fees-explained

 

[kdonnel]

According to this, it is called tiered pricing.
https://www.swipesum.com/insights/merchant-services-fees-explained

No merchant should be using a processor that has a tiered pricing structure.

Originally invented to maximize profits for payment processors by confusing merchants with complex rate structures, tiered pricing is now widely avoided; it's best to steer clear of providers who still use this model.