I thought that the price of using a credit/debit card was the interest payed.

[DWalt]

Getting your CC skimmed at a gas pump is bad. Having it happen to your debit card is way worse.

Precisely the reason I do not have nor want a debit card. No reliable way to prevent the balance in your bank account from being wiped out, and no recovery possible. Might be OK if you wanted to have a separate account for convenience debit card transactions while maintaining only a minimal cash balance in it, maybe kept at less than $500.

 

[Onomea]

FYI:

 

[gc70]

Here are VISA's Core Rules and Product and Service Rules (caution - 920 pages).
Here is VISA's U.S. Merchant Surcharge Q and A (only 3 pages).

Different rules apply to credit cards, debit cards, and prepaid cards. There is also a difference between a cash discount and a surcharge.

To make things more fun, the credit card networks (VISA, MasterCard, Amex, and Discover) have contractual relationships and interact with card issuers and processors. The networks define some transactional details, but issuers and processors define other details about interactions with merchants and consumers.

 

[rwsmith]

On Gunbroker, it is very common for dealers to say, "Price includes cash discount. Add 3% for credit card payments."

Yes, this I've seen and have paid the price for the security of a card purchase, not to mention getting sending a cashiers check.

 

[Kiwi cop]

Here in Kiwiland we started going cash free about 40 years ago with ATM’s and point of sale electronic transfers with cards.

Credit cards have almost always had a fee built in, around 3%. About 6 years ago a contactless payment was introduced with chip enabled cards with an $80 maximum and a 2.5% fee charged by the banks. This was mostly absorbed by the seller.

During Covid the maximum was raised to $200, and afterwards some started charging the fees, but not all.

Recently our Consumer Affairs organisation, a non-governmental organisation with investigative and prosecution authority, began pushing banks to abolish the contactless fee. They had previously managed to get both contactless and CC fees lowered from over 5% to the actual cost to merchants.

As for me, if a merchant charges the fee air just swipe the debit card and avoid it.

 

[sgabrie854]

But now they add 3% to that. I suppose that if we started rejecting card use and went back to paying cash, they'd charge for that, too.

Now? Some vendors charge 3 to 4% for many years as I can remember.

 

[CAJUNLAWYER]

Many places call it a "convenience fee"
I wrote about this some time ago. got hit with it at a Drs office
OK if they need to pay for the crediy card company use,OK but not a percentage. It doesn't cost more to process an $25 bill vs a $2,500 bill

Credit cards charge a percentage of the charge to te merchants using their card. That is off the top of pure profit for the merchant. Of course the merchant will build this into their charge. I do it when my clients pay with a credit card. I also tell them that if they pay check or cash they don't owe the up charge. Fair is fair. Generally since I don't do anything until I get the money, and the client usually doesn't have the money, they pay the fee. Just a cost of using a credit card. Pure and simple. FUll disclosure is the key. Tell the client/patient/customer up front why the fee is being charged (it is for client/patient/customer's benefit) and make sure they know they can avoid the fee if they are able to meet your payment reqilrements otherwise, ie have the wherewithall to apy upfront. The Dr should not call it a convenience fee but should call it what it is and give the patient an opportunity to make alternative payment arrangements, ie pay cash or check.. I ALWAYS inquire about paying cash and if the provider/merchant will not give a cash discount, then I go ahead and either pay with a credit card or go somewhere else. As far as restaurants, I ALWAYS pay cash mainly because the servers really appreciate getting their tips right there rather than wait for them to be processed and leave a paper trail.
Don't get mad, Just understand and deal with it.

 

[SMSgt]

What I hate is charging me that 3% credit card fee but not accepting cash.

If they are going to do that, then the 3% fee should have been built into their fee structure. They made it a non optional cost of delivery business. No different than property taxes, insurance, utilities, salaries… They don’t itemize those expenses on their bill.

It makes the accounting easier. Taxes, Ins, Untilities are all accounted for separately in the books.

 

[SMSgt]

Technically, cash free is illegal. Cash is "legal tender" and can be used for ALL debts. Most doctor offices are now cash free.

Tell the Doc you're out of cash and ask if he'll accept a few chickens instead.

 

[nll401]

A friend owns a local gun shop. He used to mark on the price tag a "credit card price" and a "cash price." The credit card company found out about it and threatened to stop his ability to deal with the card company. Don't know if this is a widespread practice or just because of the anti-gun focus of many companies?????

This was a common stipulation by the CC company that applied to all types of businesses. The agreement with the CC company forbade charging extra for use of the CC. Not a law, just part of the agreement. But usually a cash discount was permitted (same thing, different name). A federal law in 2024 changed that - retailers now CAN charge a premium for use of a CC, but not a debit card.

 

[gunbarrel]

Some comments...

- If at all possible, I avoid gassing up at name-brand gas station where they charge you the higher price for gas...even if you use their brand cc (same as if you were using Visa, MC, etc.) To get 10¢ - 15¢ off per gallon, you have to use greenbacks. I try to fill up at name-brand gas stations if paying with their cc is the same as paying cash. Then, I pay off my gas bill at the end of the month.

- I was surprised the other night when I stopped at Mickey D's and they were taking *cash orders only* because there was a computer problem. As long as things like this happen, I think dead presidents will remain in circulation.

- None of our LGS charge extra if you pay with a cc. And there are a lot of metchants on GB who make it a point to advertise *No cc Fees! Buy from them if possible, and let them know that one major reason you bought from them is because of their cc policy. Let them know that you appreciste it.

 

[gunbarrel]

Some comments...

- If at all possible, I avoid gassing up at name-brand gas station where they charge you the higher price for gas...even if you use their brand cc (same as if you were using Visa, MC, etc.) To get 10¢ - 15¢ off per gallon, you have to use greenbacks. I try to fill up at name-brand gas stations if paying with their cc is the same as paying cash. Then, I pay off my gas bill at the end of the month.

- I was surprised the other night when I stopped at Mickey D's and they were taking *cash orders only* because there was a computer problem. As long as things like this happen, I think dead presidents will remain in circulation.

- None of our LGS charge extra if you pay with a cc. And there are a lot of metchants on GB who make it a point to advertise *No cc Fees! Buy from them if possible, and let them know that one major reason you bought from them is because of their cc policy. Let them know that you appreciste it.

 

[N4KVE]

First let me say I pay CASH for everything because cash is KING. I only use a CC to buy something online which is rare. I’ve been working gun shows for 10 years now. So if a customer wants to pay MSRP, no one mentions a CC fee. But the minute “whats your best price” is mentioned, the customer is asked “how are you paying, cash, or plastic”? Then he’s given the appropriate price depending on his answer. The plastic price will be 3% higher. Now it’s justified by saying plastic users pay the normal price, nothing added. But cash users are rewarded with a 3% discount. Any serious gun show attendee always has cash with him because someone maybe walking the aisle with an original model 39 that he paid a few hundred for decades ago, & doesn’t know it’s true value. He’ll let it go for $300, & you think he’ll take plastic? I never go to a gun show without at least $1000 in my pocket. GARY

 

[Bald1]

The fee has always been there. It’s just that merchants began passing it along to customers in the past few years…… I was just explaining to my teenage stepson that my checking account still earns 5%, partly because I have to use my debit card 12 times per month. He had no idea the bank made money per transaction.

 

[H Richard]

Credit card processing fee's charged to businesses are usually based on the volume that business processes. The higher the volume the lower the fee. Some very high volume business's have fee's in the 1% or even less. Some of these business's don't pass the charges along to customers.

 

[Revelation]

Recently merchants have begun to add the 3% to the retail price to cover the processing charges the credit card companies charge to the merchants. Many merchants will waive this 3% charge if you use a debit card.

Somebody needs to pay for the points or cash back that credit cards offer cardholders. This comes from annual credit card fees, interest payments from cardholders who pay late, and processing fees charged to merchants.

That's how I understand it, anyway.

I was informed by several merchants in GA and FL that the so-called Debit cards also have fees involved, so these merchants are also adding 3% Use Fee to sales with debit cards..... We are being corraled into what is becoming the push for Digital Currency. Politics aside, this is what the "world" wants.

 

[Rule3]

Credit cards charge a percentage of the charge to te merchants using their card. That is off the top of pure profit for the merchant. Of course the merchant will build this into their charge. I do it when my clients pay with a credit card. I also tell them that if they pay check or cash they don't owe the up charge. Fair is fair. Generally since I don't do anything until I get the money, and the client usually doesn't have the money, they pay the fee. Just a cost of using a credit card. Pure and simple. FUll disclosure is the key. Tell the client/patient/customer up front why the fee is being charged (it is for client/patient/customer's benefit) and make sure they know they can avoid the fee if they are able to meet your payment reqilrements otherwise, ie have the wherewithall to apy upfront. The Dr should not call it a convenience fee but should call it what it is and give the patient an opportunity to make alternative payment arrangements, ie pay cash or check.. I ALWAYS inquire about paying cash and if the provider/merchant will not give a cash discount, then I go ahead and either pay with a credit card or go somewhere else. As far as restaurants, I ALWAYS pay cash mainly because the servers really appreciate getting their tips right there rather than wait for them to be processed and leave a paper trail.
Don't get mad, Just understand and deal with it.

The convenience fee was another online Merchant. I have only one Dr that charges a fee plus they do not take cash, So I will just used a Debit Card which I do not normally even carry. I think Drs charge enough without a CC fee.

I have one Dr that his office is a separate office in a BIG complex by the Hospital, They charge an extra $50 fee called a Facility fee, They are not in the Hospital.!

 

[Nevada Ed]

Plastic is ok if you pay your bills on time.

The $25 late fee, sort of sucks.

This year they even start carging interest !!

 

[Rule3]

They only place that has charged me a "fee" is one Dr office
No fees at big box stores, grocery store, any online place I shop so why juts one BIG expensive Dr and not the other places?

 

[Mike LaNier]

As a geezer, I tore up my credit cards years ago, and solely deal in cash or trade. Why? My wife has had her credit card and debit cards hacked several times (our bank has always made it right, thankfully) as she uses cards for everything. If you use a card online you can be hacked, period. It's inconvenient not to be able to whip out a card and buy what I want, but it's also easy to get deeper and deeper into debt with cards; most folks in this 'Gimme it now' society don't have the will power (or the income) to pay off the balances each month.
Of course, as an octogenarian, my mantra is "God, gold, guns and groceries." Works for me!