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If the retailers were to start adding these fees people are going to think twice about using that CC and use cash/debit instead. If you were going to buy a TV and there is $20 fee for CC what are you going to use to purchase it? The cost of that fee is no longer added into the cost of the product for cash paying customers.
Having said that the one article pointed out retailers may not want to go this route because people are likely to spend more when they have a CC in their hand.
Quote:
People need to stop acting like they know how business owners have already been dealing with this credit card issue for decades.
I tell you how I dealt with it, I never offered it as a form of payment. In the fuel delivery business you're operating on a small profit margin, 2 or 3 percent is a lot. I did offer credit to established customers and had little trouble collecting but then again in my business the customer was more likely to be middle aged person that owned their own home etc. These were nearly all low risk customers by default.
I used to work in PoS, yes I understand the technical difference.
My point is, at this time, it is another burden upon the middle class who were promised no more taxes.
Its a transaction fee. It covers the cost of the transaction between bank and user. Users have been absorbing these costs since forever and were built into the purchase price. It will be up to the user to decide to enforce it or not.
I guess we will go back to the dinosaur age when people used hard cash. The other option will be to use a debit card, which will probably see a transactoin fee somewhere down the road.
Maybe this is a good thing. People would stop using credit cards and running up their credit when they realize it's costing them an extra $20-25 a month to use them.
Yes, I agree this is an opportunity for corporations to pass on their costs directly to the consumer.
That's actually a very sound business practice. In fact, if a business DOESN'T do this, they won't be in business long. Unless, of course, they are being subsidized. Don't get me started on that.
If I were a merchant, I'd probably charge people who pay with CHECKS a surcharge - they're a much riskier vehicle than a credit card purchase. And believe it or not there are costs associated with processing cash and checks as well. For instance, there's the time it takes to balance the drawers, fill out the associated paperwork, and then someone has to take the cash and checks to the bank, wait in the drive through line, etc. There's also more room for human error when dealing with cash and checks.
The vast majority of businesses have already computed these costs into their prices.
I shop at a little antique shop in a small town occasionally. The owners there charge 3 percent if I use a debit card for purchases under a certain dollar amount, but don't charge extra for cash or my out of state check. Oh well, it's their choice and mine as to whether or not this goes down. I usually write a check - which is a hassle because they often don't cash it for days - sometimes it doesn't clear my account for two weeks. Oh, well. I always have the option to just use my debit or credit card, or stop somewhere and get cash (another hassle).
If I were a merchant, I'd probably charge people who pay with CHECKS a surcharge - they're a much riskier vehicle than a credit card purchase. And believe it or not there are costs associated with processing cash and checks as well. For instance, there's the time it takes to balance the drawers, fill out the associated paperwork, and then someone has to take the cash and checks to the bank, wait in the drive through line, etc. There's also more room for human error when dealing with cash and checks.
The vast majority of businesses have already computed these costs into their prices.
I shop at a little antique shop in a small town occasionally. The owners there charge 3 percent if I use a debit card for purchases under a certain dollar amount, but don't charge extra for cash or my out of state check. Oh well, it's their choice and mine as to whether or not this goes down. I usually write a check - which is a hassle because they often don't cash it for days - sometimes it doesn't clear my account for two weeks. Oh, well. I always have the option to just use my debit or credit card, or stop somewhere and get cash (another hassle).
What would you think if people like me started paying for a $50 transaction with $1 bills? I'm just trying to level the playing field.
What on earth are you going on about? You're not making sense.
Over in P&OC, a lot of people complain that poor people have an entitlement mentality. From this thread, we can see that middle class credit card users also have an entitlement mentality.
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