Retailers charging transaction fees

[huckfinn]

Hey all;

I might be off here, but I really get pissed off when I get to the cashier in a store, then get informed I am going to pay an extra 15-25 cents because I am paying with debit.

Now, I appreciate the business owners have to cover their banking charges, but I would be really surprised if the banks charge that for every interac purchase. I also see paying by cash more expensive for the business owner, because they have to take time and gas to go to the bank, then pay up to 2.5% to deposit it.

I tend to avoid the establishments that charge me extra for using interac on small purchases.

How do others feel about this?

 

[Submariner]

A new reality, some insight ...

http://www.cbc.ca/news/canada/more-stores-charge-extra-for-debit-card-use-1.362448


More stores charge extra for debit card useCBC News Posted: Nov 12, 2003 10:18 AM ET| Last Updated: Nov 12, 2003 10:18 AM ET

More retailers are charging their customers a small fee to use their debit cards, despite the risk of aggravating them and losing business.

The debit card fee is on top of whatever fee the bank charges for use of the card, and some stores charge it to offset the expense of implementing the system.

Debit card readers in retail stores used to be the domain of the big bank, but more private companies have been developing their own networks since the deregulation of the industry in 1997.

The private systems give storeowners the option of giving their customers cash back with their purchases and of charging a fee for the transaction.

Michael Back, who runs CollectivePOS, one of the private point-of-sale companies, said debit surcharges started in convenience stores, but now more small- and medium-sized businesses are doing it.

"We're seeing it expand into businesses that have small average ticket prices. Coffee shops, for example," said Back.

For transactions of only a few dollars, the fee to the business for completing the debit transaction would be too high to make a profit, so the surcharges help the business offset their costs.

"We're seeing these people start to implement convenience fees," said Back.

But Back said some businesses are now seeing debit surcharges as a source of revenue, as well.

Bill Knight of the Financial Consumer Agency of Canada said debit machines and the convenience and surcharges that come with them are part of competition.

Knight said consumers can express their displeasure with the charges and take their business elsewhere.

"If somebody is in the retail business, they really don't want to aggravate their customers over a minimal fee to them that is, in fact, going to make them go elsewhere," said Knight.

 

[geeky]

Speak with your wallet - if people refuse to shop in stores that do this, they will get the message... but as long as people will suck it up, they'll keep trying to get away with this stuff.

 

[Chloë.]

I think of it as a given now, for convenience stores, pay with a card - extra 25 cents, etc. What retailers have joined the movement?

 

[Occasionally]

Never understood the point of debit cards.... except for one reason..... (below). Are there some kind of awesome perks I've never known about by using debit cards??? Just about every place allows credit card usage.

Credit cards are better for a number of reasons:

- You don't have to pay for until your monthly credit card invoice is due
- Every credit card has some kind of bonus perk, which usually equates to 1-2% (cash back, store points, etc...). I have a no annual fee card. I get back about $150-200 in dividend pay back cheques every year. A nice pay back since half the purchases are thing I expense through work.... no corporate card, so I buy it myself, expense it with the admin dept, but I get the pay back
- If you get burned with a bad product and a relunctent store, call the credit card company and tell them you got ripped off. Send them a copy of the receipt, and an email. They'll take care of the rest. I saved $200 when a asshead contractor tried ripping me off. Got $200 refunded on my credit card. A debit card has cash already purged from your account. So if you run into a store manager denying you a refund, have fun trying to get your money back... they already have it
- Credit cards have all kinds of extra perks most people don't know about. Even basic no annual fee cards often have perks like car rental insurance, extra year warranty when you buy something, usually some form of bonus travel insurance etc.... Most people are too lazy to know about it
- Helps build credit history
- Fraud help. I've had someone charging stuff illegally. Big deal. Called up the credir card company, told them about it. Fishy charges waived. Sent me a new card two weeks later after I had to send back a doc saying I agree to the investigation or something
- No fee to use a credit card. On the other hand, you see places often saying they will charge 25 or 50 cents debit surcharge unless you buy $10 or more. You often see this in convenience stores or food court eateries. I don't think I've ever see a place charge money to use a credit card, which is odd because if stores hate paying Visa or Mastercard fees, you'd think they would also try to charge customers $1 or less to use a credit card, but they don't..... maybe it's a Visa/MC policy????

Of course there is a drawback. If you don't have control of money and buy endless stuff on credit, you'll be in debt for life. So paying cash or by debit helps keeps money in check. But as long as you use credit cards wisely, they are much better to use than debit cards.

 

[Occasionally]

I think of it as a given now, for convenience stores, pay with a card - extra 25 cents, etc. What retailers have joined the movement?

Many food court places will charge. Typically those mom and pop type of stores. Not big chain restaurants.

 

[bluecolt]

Why not just use cash instead of screwing around and bitching about fees?

 

[The Hof]

Some bright spark in govt decided to train the retailers to nickle and dime us by charging for bags. They removed the legislation but lo and behold they kept charging us. This became a revenue stream. This was a rush for the retailers and like any good junkie they need to up their dose to keep the elation. They're moving on to other little nickel and dime fees and more will follow.

People aren't leaving their purchases at the counter and walking out so what risk is there. Hell, even if you do walk the guy next door is probably going to hit you with the same nonsense.

You're right Chloe, it's annoying, but it's soon to be the new norm.

 

[Occasionally]

Why not just use cash instead of screwing around and bitching about fees?

Probably too lazy to go to an ATM to take out money.

 

[Occasionally]

Some bright spark in govt decided to train the retailers to nickle and dime us by charging for bags. They removed the legislation but lo and behold they kept charging us. This became a revenue stream. This was a rush for the retailers and like any good junkie they need to up their dose to keep the elation. They're moving on to other little nickel and dime fees and more will follow.

People aren't leaving their purchases at the counter and walking out so what risk is there. Hell, even if you do walk the guy next door is probably going to hit you with the same nonsense.

You're right Chloe, it's annoying, but it's soon to be the new norm.

The dumb thing about the bag fee was that no part of it went to the government or eco fees or anything. It was pure profit for the store. Every place charged 5 cents. So if a bag costs them 1 or 2 cents (tops). They profited the difference. Doesn't sound like a lot, but multiply 3 or 4 cents by millions of bags per grocer and that's nice bonus revenue. For people going the green route, stores also make money off them by selling nylon bags for $1-3. It costs them no more than 50 cents a bag. So if they don't get you on the 5 cent bag fee, stores are making profit from nylon bags.

And none of it went to the government. Pure store revenue and profit.

 

[huckfinn]

I think of it as a given now, for convenience stores, pay with a card - extra 25 cents, etc. What retailers have joined the movement?

Thanks for the input all.

I for one, avoid those stores that charge extra fees.

 

[red]

Some bright spark in govt decided to train the retailers to nickle and dime us by charging for bags. They removed the legislation but lo and behold they kept charging us. This became a revenue stream. This was a rush for the retailers and like any good junkie they need to up their dose to keep the elation. They're moving on to other little nickel and dime fees and more will follow.

People aren't leaving their purchases at the counter and walking out so what risk is there. Hell, even if you do walk the guy next door is probably going to hit you with the same nonsense.

You're right Chloe, it's annoying, but it's soon to be the new norm.

That's was David shiner

 

[Occasionally]

That's was David shiner

Policy: Store charges 5 cent per bag, and they keep all profits from plastic bags and sales of reusable nylon/cloth bags.

Call me suspicious, but either:

A. He's an idiot with zero sense of business or,
B. He got paid off big time from retailer lobby groups to pass such a policy where stores make more money

Take your pick.

 

[red]

He is an idiot and a pompous ass who doesn't worry about getting re-elected

 

[shakenbake]

That's was David shiner

And David Miller who was the mayor at the time.

 

[nobody123]

Unreal. 15 posts and not one pointing the finger at the real motherfuckers in this scenario. You wanna be pissed at someone, be pissed at the goddamned banks, not the mom-n-pops getting squeezed by them.The fucking banks charge the poor saps a cut for processing a debit card purchase, and the fucking soulless motherfuckers at the banks have been upping fees nonstop. I don't begrudge some pinched retailers adding a service fee. (I also ain't a fan of paying more, so Imma happy to pay cash or use a credit card instead)

 

[Mr Bret]

If I'm not mistaken, (and I could very well be on this one) don't the retailers pay a 1-3%fee when a client uses a credit card?
If that's the case, when a retailer wants to charge the few annoying cents on a debit card transaction, tell them never mind, I'll use a credit card.
Then they'll get dinged for a higher percentage and you'll pay nothing extra.


If I'm wrong about this, please enlighten me.

 

[Chloë.]

It's not only stores. Cabs too, unless you forgo the whole process and opt for an Uber or pay cash.
Some drivers get pissed at you and ask if you can use cash instead. Some have even driven me to a bank machine.

 

[GPIDEAL]

If I'm not mistaken, (and I could very well be on this one) don't the retailers pay a 1-3%fee when a client uses a credit card?
If that's the case, when a retailer wants to charge the few annoying cents on a debit card transaction, tell them never mind, I'll use a credit card.
Then they'll get dinged for a higher percentage and you'll pay nothing extra.


If I'm wrong about this, please enlighten me.

Could be a plan. Then a consumer can pay their credit card account online in advance to ensure they won't spend the cash elsewhere.

 

[GPIDEAL]

Unreal. 15 posts and not one pointing the finger at the real motherfuckers in this scenario. You wanna be pissed at someone, be pissed at the goddamned banks, not the mom-n-pops getting squeezed by them.The fucking banks charge the poor saps a cut for processing a debit card purchase, and the fucking soulless motherfuckers at the banks have been upping fees nonstop. I don't begrudge some pinched retailers adding a service fee. (I also ain't a fan of paying more, so Imma happy to pay cash or use a credit card instead)

It's the banks, yes!