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

[vt_shooter]

I like to us cash as much as possible at small businesses. Example: The farm stand up the street from me paid about $20K in swipe fees last year. $20K! That's a lot of $$ for a hard working farmer to absorb, I wish more people would help them and use cash.

 

[shrinkwrap]

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

Similar to the COVID-era "tip" screen coming up simply for handing a customer an ice cream cone, or a bag containing a bagel (in other words, doing their job), this is the merchant passing on a cost of doing business to the customer - in this case, they avoid raising their employee wages.

I remember when auto mechanics began charging a "shop-supply fee" about 30 years ago. Pure profit for them, since they charge every customer the same 6 or 7% bogus fee, regardless of whether or not they actually used any "shop supplies," such as a shop rag, or a squirt of silicone spray. In any case, these things are, or should be, considered part of the cost of doing business. Whoever thought of it was brilliant, and probably never compensated for the idea.

 

[Muss Muggins]

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

Square charges me just shy of 4% on card payments. I build it in. $500 fee gets a $520 charge. Of that extra $20, I get to keep $1.65 . . .

 

[Rust E. Badge]

I had to check the dates on this thread to make sure it wasn't 15-years old. Where have ya'll been? I was accepting CC's for a small business in the mid-2000's and was being charged 3% for each CC transaction back then. Of course, the 3% was passed to the buyer. Why would I eat the expense of someone's purchase? If you don't like the transaction charge, use cash when possible.

 

[mtgianni]

About two years ago our mechanic shop changed systems and started billing 3% for cc use. Enough people complained that they went back to their old card machine who didn't require a 3% charge. I understood years ago, that the cc readers were owned by individuals and they received a percentage of the use. 1/100 of 1% IIRC. I believe that it might be a consortium of cc machines rather than the cc companies that are requiring the charges. I do know American Express has a different fee schedule.

30 years ago, a now deceased friend bought a business that included a car wash. The previous owner only recorded checks and cc on his books. Cash and all the car wash quarters went straight to his pocket. That person had owned his business for 25+ years.

 

[Rustyt1953]

In the 80's we started with this. Retail roulette.

 

[pawngal]

I own a small business. We accept MC, VISA + DISCOVER. They all charge us 2.5 - 3%. I eat that charge. American Express on the other hand charges us 5% so I won't accept them.
Another fun thing with credit cards is when the customer stops payment on the card becouse they don't remember ever buying anything from us. PIA.

I had chargeback recently for $500. Fortunately I still have the customer physically sign the CC slip so I contested and sent a picture of the signed slip. Chargeback gone. It had been for non-receipt like yours was.

 

[jschmidt]

That was how it used to work, back in the '70s. Well that's not exactly right. Interest still covers their cost. But capitalists like to figure out how to charge for everything. And these fees are constantly rising, especially for the little guy.

 

[London Armoury]

Debit Cards If you Google "charging Debit Cards, a using fee, iis it Legal" the answer is NO In Most States. I am sure If Proxibid the auction app has charged me 3% on on some past auctions but I am very careful now and always us a debit card not a Credit Card

 

[roundels]

Once the medical business started getting away with copays it was open season on everything else.

 

[glenwolde]

To me, it's kind of BS. Sure, they pay a fee. But cash is costly too. Maybe more so. You have to count it, secure it, transport it, then reconcile it. There's a whole lot of humans involved in that which makes it expensive. Plus potential theft losses by those humans. "Credit/Debit only" is probably cheaper and less work than "Cash only".

The Honda dealer just did it to me. That was new. I just used my debit card. None of this is new it's just becoming more prevalent. Some don't charge you a fee but give you a discount for cash or debit. Uh...it's the same thing. I only use credit cards for points, I pay them off every month so a merchant charging me to use a card is a non-starter.

As long as they don't charge for a debit card I'm good. I guess that fee is tolerable.

 

[roundgunner]

GOD Bless you and your caring kindness!

Thank you but it is just business. I do run this business to give the best service possible and fix any and all problems. I started this portrait business in 1988 and struggled for years. It started paying off after about 10 years and now is a nice family run money maker. And I love doing it. Any jobs I don't really like to do I let the others do.

 

[TX-Dennis]

If we go "cashless" will I have to change my alias to "Electro Man"?

How about electricdollar?