Credit Card Swipe Fee's - What Retailers Are Charging?

[lilmrsellis]

I read on another thread that Allegiant Air is charging the fee. I haven't tried to book with them personally, so can't say for sure.

Maggie

If Allegiant is charging a swipe fee, that's serious bull crap! The don't accept cash or checks anymore!

 

[Lewisc]

Allegiant can't charge a swipe fee since they do business in states which ban swipe fees.

Allegiant does offer a discount to passenger who pay with a debit card.

Most of us only care if the credit card price is the same as the cash (debit card) price. Does it matter if cash customers get a discount, credit card customers are shown a higher price or if there is a credit card surcharge (swipe fee) applied at the register?

 

[MrsPete]

I understand it's a double-edged sword for small business: If they don't accept credit, they risk losing your business. If they do accept credit, it eats into their profits. I don't see a good answer -- it's one of those unintended, mayhap unforseen side-effects of our society becoming a credit-culture.

However, I have to approach it from my own viewpoint: My loyalty lies first and foremost to my own wallet. Therefore, I do use credit whenever I can. Why? Because I'm not paying any interest, so it's free to me. And I'm getting rewards points as well as the convenience of not carrying cash.

An extension of that thought: If various stores start charging a fee, I'll continue to do what's best for my own wallet. I'll either stop shopping at those stores, or I'll plan to have cash on hand. I will not pay the fee -- not unless it becomes such "a thing" that all the stores are doing it and it can't be avoided; however, I don't see that happening. I think the general public is rather ambivalent about fees (how many people pay hundreds a year in bank transation fees?), and they'll not refuse.

 

[Lewisc]

Stores used to accept checks and offer house accounts. Credit card fees replaced having to write off bad checks and noncollectable house credit card accounts.

People who pay with a credit card tend to spend more money then people who pay with cash.

 

[princessbride6205]

Stores used to accept checks and offer house accounts. Credit card fees replaced having to write off bad checks and noncollectable house credit card accounts.

People who pay with a credit card tend to spend more money then people who pay with cash.

These are exactly the same points I was going to make.
I am all for requiring a minimum purchase to help small business. So if your annual sales are less than $X, you can require a minimum purchase of $5 or $10 to use credit. There is a cookie/coffee kiosk in my office building. He has a minimum purchase of $3 for CC. That seems totally reasonable to me - if I'm buying 1 homemade muffin, I wouldn't have a problem paying cash.

 

[plummer925]

I own a small business (we do live in a state that we can not charge a fee). I would NEVER charge a fee, nor have a minimum purchase. First - it is against the terms with V/MC to say there is a minimum (not against the law, but against the agreement). Second, the fee's really are NOT that bad - I get charged $0.25 plus 2% per transaction. Even on a $5 transaction it is only $0.35 total fee - if my profit margin is so low that I can't do that, then I have no right to be in business.

Over 35% of my business income at craft shows (not including online sales!) is from credit cards. I am SO happy to accept them. I would not make a profit if not accepting them. I welcome all cards and, honestly, businesses that do not have this same attitude, well, I shop elsewhere.

Do I offer my customers a cash incentive? Sure, if they ask and their order is large, but like I said, my fees are so low that even with a $50 order (which I've only had 3 customers go over that amount the entire year last year!) my fees are $1.25. If someone wants to pay cash and they have bought $50 or more, I'll give them a free $2 potpourri, but that's all I offer, and that is if they ask.

 

[jenndisney]

I own a small business (we do live in a state that we can not charge a fee). I would NEVER charge a fee, nor have a minimum purchase. First - it is against the terms with V/MC to say there is a minimum (not against the law, but against the agreement).

Actually visa says there can be a minimum....

"U.S. retailers may require a minimum purchase amount on credit card transactions. The minimum purchase amount must not exceed $10 and does not apply to transactions made with a debit card."
http://usa.visa.com/about_visa/ask_visa/index.html

And here is what MasterCard says...

"A merchant located in the U.S. region or a territory or possession of the United States in another region may set a minimum transaction amount to accept a MasterCard® card that accesses a credit account, as long as the minimum transaction amount does not exceed USD 10 (or any higher amount established by the Federal Reserve Board by regulation) and does not differentiate between issuers, or between MasterCard and other acceptance brands."
http://www.mastercard.us/merchants/support/transaction-amounts.html

They both brought their terms inline with the law back in 2010. Many people do no know that.

 

[Lehuaann]

A few days ago we encountered a small business charging 5% fee for cc, no fee for debit. I am pretty sure Allegiant is doing the same thing.

 

[Smiling Cheshire Cat]

A few days ago we encountered a small business charging 5% fee for cc, no fee for debit. I am pretty sure Allegiant is doing the same thing.

Doesn't Allegiant market this a discount for those who pay with a debit card, as opposed to calling it a credit card fee?

My cousin, who owns a pool supply store, and I were talking about this the other day. She has no plans to charge the fee. She says she tries to add this into her cost knowing that most of her customers are paying with ccs.

 

[plummer925]

Actually visa says there can be a minimum....

"U.S. retailers may require a minimum purchase amount on credit card transactions. The minimum purchase amount must not exceed $10 and does not apply to transactions made with a debit card."
http://usa.visa.com/about_visa/ask_visa/index.html

And here is what MasterCard says...

"A merchant located in the U.S. region or a territory or possession of the United States in another region may set a minimum transaction amount to accept a MasterCard® card that accesses a credit account, as long as the minimum transaction amount does not exceed USD 10 (or any higher amount established by the Federal Reserve Board by regulation) and does not differentiate between issuers, or between MasterCard and other acceptance brands."
http://www.mastercard.us/merchants/support/transaction-amounts.html

They both brought their terms inline with the law back in 2010. Many people do no know that.

The MERCHANT terms (not V/MC themselves) state that I can not have a minimum - if I do, then I lose my license with my processor.

 

[navywifetill2002]

The local place I get my car worked on has a $15 minimum or you pay a $2.50 fee. I think this is because we have a state inspection that costs $12 each year and they only make like $2 on it (all profit is to come from fixing the problems they find). I've never been charged but it's been posted for years.

 

[2manypets]

A local store swiped my debit card as a credit card and tried to charge me a $4.50 fee for a $17.99 purchase. I had them cancel the sale and re-swipe the card as a debit. He refused, said he no longer had the ability to do debits (which is BS). Won't be going back there and have turned them in to Visa.

 

[Callie]

A lot of major stores are going to be going away with accepting checks. There are just too many of them, and it costs them more than bad credit cards.

We've been trying to cut back on ours, and doing EVERYTHING we possibly can, but it's impossible.

 

[4HppyCamprs]

A local store swiped my debit card as a credit card and tried to charge me a $4.50 fee for a $17.99 purchase. I had them cancel the sale and re-swipe the card as a debit. He refused, said he no longer had the ability to do debits (which is BS). Won't be going back there and have turned them in to Visa.

That is total BS! Glad you turned them in. Maybe look at filing with the states attorney general. It is just wrong..

Sent from my iPhone using DISBoards