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Old 01-22-2013, 12:35 PM
 
527 posts, read 1,121,637 times
Reputation: 679

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A lawsuit was recently settled where merchants could charge you betweem 1.5-4% fee if a customer uses Master Charge or Visa charge card. What ever the fee is that the merchant is charged by the bank.

could start this Sunday.

If a merchant does add this fee, signs must be obvious at door or register.
Most likely will be added like sales tax on checkout.

Not allowed in 10 states where it is specifically against the law, (no law in NJ), but the rest watch out.

probally will not start soon but watch out for the notices. Merchants will probably play chicken and watch for someone to start adding the fee and see public reaction.

If you don't like this, vote with your feet and buy elsewhere or pay cash.

Affects online stores also.

Amer express not affected, American Express puts in the contract with the merchant that the merchant cannot pass along the fee.
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Old 01-22-2013, 12:49 PM
 
1,787 posts, read 5,048,297 times
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This was from July 2012. Do you have a newer link with the latest news on this?

Retailers, Not Consumers, Swipe Victory in Credit Card Fee Settlement - US News and World Report
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Old 01-22-2013, 12:50 PM
 
Location: NJ
12,284 posts, read 32,077,893 times
Reputation: 5247
i won't patronize gas stations that charge more for using a CC
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Old 01-22-2013, 01:29 PM
 
Location: NJ
24,871 posts, read 30,984,836 times
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i use amex whenever i can. i get 2% cashback rewards on all purchases, so anything 2% and less i wouldnt think twice about paying. anything more than that and id have to consider cash or finding an alternative place. but ultimately my cost and convenience is most important, i dont have any negative feelings towards a place that choose to charge the fee. the concept of them being charged a fee and passing that specific cost along doesnt seem unfair to me.
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Old 01-22-2013, 01:57 PM
 
1,977 posts, read 6,919,285 times
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All businesses were always charged a fee when accepting CC for payment. MOST places simply increased their prices across the board slightly or simply ate the fee as Cost of Doing Business. I know times are tough but making the client pay the fee is just bad business IMO.

As Tahiti said, I do not go to gas stations that charge more for CC usage. I will not patronize a retail establishment that does so also.
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Old 01-22-2013, 02:09 PM
 
14,781 posts, read 36,580,117 times
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Some places already do this and I'm not talking about gas stations. A lot of smaller retailers will either give you a "cash discount" or make it clear that they charge more for credit cards. I personally can't see larger retailers doing this as they pay rather small processing fees relative to what smaller retailers pay and adding the charge could discourage business at that retailer and also discourage people from "impulse buying" which is largely done on credit cards. This also won't impact anyone using a debit card to make a purchase, just people using an actual credit card (or their debit card as "credit") and even then only if the retailer chooses to do it.

There is a hidden cost here though that the retailers don't want to talk about. It costs them money to handle cash. I don't have a source, but I read an article not too long ago discussing why a lot of retailers offer "cash back" options when you choose to pay with "debit". The reason is that the fee for the increased amount of the transaction (even pre-Dodd Frank) is less then the cost to the retailer to handle the cash. Basically it's an easy way for a store to dispose of their cash on hand and save money. This was also cited as a reason so many retailers embraced credit card processing. It cut down on the amount of cash they had to handle and allowed them to stop accepting checks which are even more costly to process.
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Old 01-22-2013, 03:22 PM
 
Location: NJ
12,284 posts, read 32,077,893 times
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Quote:
Originally Posted by NJGOAT View Post
Some places already do this and I'm not talking about gas stations. A lot of smaller retailers will either give you a "cash discount" or make it clear that they charge more for credit cards. I personally can't see larger retailers doing this as they pay rather small processing fees relative to what smaller retailers pay and adding the charge could discourage business at that retailer and also discourage people from "impulse buying" which is largely done on credit cards. This also won't impact anyone using a debit card to make a purchase, just people using an actual credit card (or their debit card as "credit") and even then only if the retailer chooses to do it.

There is a hidden cost here though that the retailers don't want to talk about. It costs them money to handle cash. I don't have a source, but I read an article not too long ago discussing why a lot of retailers offer "cash back" options when you choose to pay with "debit". The reason is that the fee for the increased amount of the transaction (even pre-Dodd Frank) is less then the cost to the retailer to handle the cash. Basically it's an easy way for a store to dispose of their cash on hand and save money. This was also cited as a reason so many retailers embraced credit card processing. It cut down on the amount of cash they had to handle and allowed them to stop accepting checks which are even more costly to process.
I oddly have no problem with cash discounts. Maybe not so odd because you're paying less than the posted price, not the other way around. My beef with gas stations is that when they implemented this policy, they didn't lower the price - price stayed the same but increased for credit and they call it a "cash discount". It isn't. It's picking nits but just doesn't sit well with me.

The gas stations around me charge credit for debit cards - that REALLY chaps my hide.
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Old 01-22-2013, 03:28 PM
 
Location: The beautiful Garden State
2,683 posts, read 3,478,019 times
Reputation: 3541
Quote:
Originally Posted by boater1 View Post
A lawsuit was recently settled where merchants could charge you betweem 1.5-4% fee if a customer uses Master Charge or Visa charge card. What ever the fee is that the merchant is charged by the bank.

could start this Sunday.

If a merchant does add this fee, signs must be obvious at door or register.
Most likely will be added like sales tax on checkout.

Not allowed in 10 states where it is specifically against the law, (no law in NJ), but the rest watch out.

probally will not start soon but watch out for the notices. Merchants will probably play chicken and watch for someone to start adding the fee and see public reaction.

If you don't like this, vote with your feet and buy elsewhere or pay cash.

Affects online stores also.

Amer express not affected, American Express puts in the contract with the merchant that the merchant cannot pass along the fee.
And of course you cannot use cash online. Oh, well, if Amazon starts doing this, I might have to buy their gift cards to use online.
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Old 01-22-2013, 05:16 PM
 
1,351 posts, read 2,758,618 times
Reputation: 857
If I were a gas station I would do "credit only". Just have huge signs, and the chances are you will never get robbed
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Old 01-22-2013, 06:05 PM
 
14,839 posts, read 17,897,557 times
Reputation: 19587
Quote:
Originally Posted by sonofagunk View Post
If I were a gas station I would do "credit only". Just have huge signs, and the chances are you will never get robbed
Although they do not have, "huge signs", announcing their policy, that is essentially the business model at Costco gas stations.
They accept only Amex credit cards and, "selected", debit cards.
Since I don't use debit cards, I have no idea regarding which ones they accept.

I happily patronize a Costco gas station whenever I am reasonably near one, in order to take advantage of the price (usually anywhere from 10-20 cents less per gallon than other stations), and to use my Amex card, which garners me a rebate of 3% on my gasoline purchase.
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