credit card fees passed to consumer

[afterhours]

I am aware that some businesses like car dealerships used to charge customers who were paying large amounts by credit cards a fee in the neighbourhood of about 2-3% .

How appropriate or acceptable as a business practice is passing of credit card fees to the consumer? The amount in question is a few grand.

 

[Brill]

It makes sense to me, who else should pay?

 

[Hangman]

The merchant agreement generally prohibits charging a fee for using debit or credit cards. The merchant absorbs the cost as the cost of doing business. If they don't want to take credit or debit payments, they should just be cash only.

See how that works out for them these days.

 

[GlavaMan]

Some merchants will offer a less expensive 'cash only' price.

 

[Mervyn]

It makes sense to me, who else should pay?

The merchant, buy using a credit card , you save them all the time and expense of having to deal with cash.

 

[blueman]

I am aware that some businesses like car dealerships used to charge customers who were paying large amounts by credit cards a fee in the neighbourhood of about 2-3% .

How appropriate or acceptable as a business practice is passing of credit card fees to the consumer? The amount in question is a few grand.

You may find smaller and/or less reputable businesses conducting business this way. I would doubt a new car dealership would attempt such a practice. In fact most dealerships (if not all) will not allow you to pay for a new car with a credit card. The last one I purchased the most I could put down on my card was $5,000 and they were not happy about it.

 

[avxl1003]

The merchant, buy using a credit card , you save them all the time and expense of having to deal with cash.

Time and expense of having to deal with cash?

I run a warehousing business. Our daily bank deposits are roughly 25 to 30 grand (sometimes more, sometimes less). I accept ALL types of payment (credit, debit, electronic money transfer, cheque, cash, etc.,.).

I can tell you that there is no hassle to deal with cash over cheques or credit cards.

I find the main benefit to accepting credit card over cheque, is you don't have to worry about the cheque bouncing.

There is virtually no benefit to accepting credit card over cash.

However, it's dishonest to tell your customer that something will cost them $1,000 and then when they hand you a credit card you charge them an extra $20.00

 

[Twister]

Some merchants will offer a less expensive 'cash only' price.

Yes some stores offer a 3% cash discount.

 

[Mervyn]

Time and expense of having to deal with cash?

I run a warehousing business. Our daily bank deposits are roughly 25 to 30 grand (sometimes more, sometimes less). I accept ALL types of payment (credit, debit, electronic money transfer, cheque, cash, etc.,.).

I can tell you that there is no hassle to deal with cash over cheques or credit cards.

I find the main benefit to accepting credit card over cheque, is you don't have to worry about the cheque bouncing.

There is virtually no benefit to accepting credit card over cash.

However, it's dishonest to tell your customer that something will cost them $1,000 and then when they hand you a credit card you charge them an extra $20.00

Businesses that only do cash ( not yours ) are at higher risk at being targetted by thieves.

 

[afterhours]

You may find smaller and/or less reputable businesses conducting business this way. I would doubt a new car dealership would attempt such a practice. In fact most dealerships (if not all) will not allow you to pay for a new car with a credit card. The last one I purchased the most I could put down on my card was $5,000 and they were not happy about it.

you seem to contradict yourself