topic Re: Paying Credit Card Merchant Fees in Community Chat

Paying Credit Card Merchant Fees

We rescue cats — Thu, 16 Jan 2025 23:46:49 GMT

Are you encountering the credit card merchant fees that the card companies charge the merchant being passed on to you as the consumer? Usually 3-5%? Are they being charged in your area and if so what are your thoughts? Seems to be taking our area by storm all of a sudden, even professional offices like doctors are doing it. This week I received a message from the hair and nail salon I have gone to for 15 years that they are going to charge 4% more if I choose to use a debit or credit card.This is coming after a services increase that came about just 2 months ago, and the salon I go to is one of the priciest in town. I'm considering changing, there is a salon just 2 miles from my house that is quite a bit less expensive and they do not charge a 'card' fee, I may try them out in the coming weeks.

Re: Paying Credit Card Merchant Fees

Etoile308 — Thu, 16 Jan 2025 23:52:02 GMT

I understand and can sympathize with small businesses working with small profit margins.

I usually use my reward credit card except when there is a financial advantage to use cash. To me, cash will always be king.

And I will always carry a card and cash with me.

Re: Paying Credit Card Merchant Fees

Sage04 — Fri, 17 Jan 2025 00:00:48 GMT

My hairdresser uses Zelle and that works for me. I've heard of some that use Cash app.

Re: Paying Credit Card Merchant Fees

Desertdi — Fri, 17 Jan 2025 00:02:27 GMT

NOT where I live. In fact, nobody wants to even touch CASH since Covid. Even thrift and $ stores now have card readers.

Re: Paying Credit Card Merchant Fees

Illinoisborn — Fri, 17 Jan 2025 00:08:21 GMT

I've always assumed that prices charged by merchants include covering their credit card fees....Just like charging enough to cover all their other business expenses. I know of one merchant that gives a discount if you pay cash.

Re: Paying Credit Card Merchant Fees

KailaS — Fri, 17 Jan 2025 00:09:23 GMT

It has been going on almost two years where I live. I pay cash to get my hair done, at the market, and lots of other places. I buy groceries with my debit card ( which has not been hit with extra fees), and large costs (like a big dental procedure for $5000) found me using a check. (Yes, my dentist accepted it.)

Re: Paying Credit Card Merchant Fees

Carmie — Fri, 17 Jan 2025 00:14:59 GMT

Yes, some merchants are passing along the fees to the consumers. I have noticed it in family run restaurants, gas stations and small stores.

Some of our utility companies will charge an extra fee if you pay your bill online....checks have no extra fees.

Other merchants will not take cash. They only take cards.

I always carry cash with me. I don't want to pay extra.

Re: Paying Credit Card Merchant Fees

nycalady — Fri, 17 Jan 2025 00:18:58 GMT

@We rescue cats Quite prevalent at independent hair & nail salons. make it a habit to ask if there's a "convenience fee" for using a credit card. If there is, I pay cash.

Re: Paying Credit Card Merchant Fees

SloopJohnB — Fri, 17 Jan 2025 00:21:51 GMT

@We rescue cats wrote:
Are you encountering the credit card merchant fees that the card companies charge the merchant being passed on to you as the consumer? Usually 3-5%? Are they being charged in your area and if so what are your thoughts? Seems to be taking our area by storm all of a sudden, even professional offices like doctors are doing it. This week I received a message from the hair and nail salon I have gone to for 15 years that they are going to charge 4% more if I choose to use a debit or credit card.This is coming after a services increase that came about just 2 months ago, and the salon I go to is one of the priciest in town. I'm considering changing, there is a salon just 2 miles from my house that is quite a bit less expensive and they do not charge a 'card' fee, I may try them out in the coming weeks.

Unfortunately, I have encountered this for the last couple of years. I have posted about it here, too. I don't like it. Just a few of the places that charge us here are my son's barber, my lawyer, diagnostic medical facility, post office, license plate agency, mechanic, and various stores. For now anyway, Publix does not. I always felt that the charge to the business was the cost of doing business but it seems now the tables have turned.

Re: Paying Credit Card Merchant Fees

Mz iMac — Fri, 17 Jan 2025 00:22:23 GMT

@We rescue cats wrote:
Are you encountering the credit card merchant fees that the card companies charge the merchant being passed on to you as the consumer? Usually 3-5%? Are they being charged in your area and if so what are your thoughts?

@We rescue cats Yes but, it never affected me as I am a cash & carry gal. I don't even carry my cc.

In my neck of the woods, merchants have always charged extra if payment by CC. Some merchants consider a debit card as cash therefore, not adding fees to your order.

Chinese take out places will give you a 5% discount if paying by cash. A Jewish deli I go to also gives you a 5% discount if paying by cash.

N.J. gas stations charge more for gas if using a CC.

As someone already mentioned further up in this thread......

CASH IS KING!

Re: Paying Credit Card Merchant Fees

ahoymate — Fri, 17 Jan 2025 00:23:26 GMT

Where I live, major US city, cash is not accepted at a lot of businesses. CC are only accepted. More secure.

Re: Paying Credit Card Merchant Fees

sunshine45 — Fri, 17 Jan 2025 00:28:57 GMT

yes, in lots of places in our area.

as a small business owner, we just adjusted our prices up to help cover some of the costs of credit card processing. we also sometimes give a small discount for cash or checks or money transfers.

Re: Paying Credit Card Merchant Fees

Meowingkitty — Fri, 17 Jan 2025 00:31:36 GMT

@Desertdi wrote:
NOT where I live. In fact, nobody wants to even touch CASH since Covid. Even thrift and $ stores now have card readers.

We have found a couple of restaurants that charge a fee. When we bought our new a/c last year there was a fee if we wanted to use a credit card and when I bought my new bedroom furniture a couple of years ago the Amish store charged a fee. We simply wrote a check for the both items and we always carry cash for restaurants if when we get there we find out they will charge a fee. They are making a killing on them. The banks only charge 2-2.5% and the stores are charging customers 3-4%. It really ads up on big purchases.

Re: Paying Credit Card Merchant Fees

Kachina624 — Fri, 17 Jan 2025 00:44:09 GMT

Merchants are taking advantage of the inflationary trend to price gouge consumers and most will roll over and accept it. Maybe revive checks?

I'm fighting with Waste Management, my garbage service. They announced a "convenience" fee for using credit/debit cards. So I did a direct online transfer from my bank and now they claim I owe them the fee. I think not! It didn't cost them a cent.

Re: Paying Credit Card Merchant Fees

MamaWick — Fri, 17 Jan 2025 00:48:09 GMT

This irks me! This has always been the cost of doing business and had previously been absorbed by the businesses. It seems these fees have become prevalent in the last 5 years (since Covid).

If the businesses wants to raise their rates 3-5%, then okay...it would be hidden. However to blatantly pass it on to me makes me angry.

We only use our credit card for larger purchases or groceries. Cash in all restaurants.

Re: Paying Credit Card Merchant Fees

smb3 — Fri, 17 Jan 2025 00:48:33 GMT

Yes, I encountered it for the first time last week when I went to the dentist and they charge 3% for credit card payments. I wasn't happy when I read that in their financial policy.

Re: Paying Credit Card Merchant Fees

shoesnbags — Fri, 17 Jan 2025 00:59:04 GMT

Yes I've been seeing this in my area for the past year or so. My ENT's office is one of the places I've encountered this. I understand the reason for it and don't mind if it's for a small bill because I do carry some cash. But I also carry one check in my wallet for larger amounts.

But something happened yesterday that kind of aggravated me. I had lunch with friends at a cafe we've gone to for years. You order and pay at the counter and they call out your number when your food is ready. I paid with my credit card and didn't notice that there was an added fee for using a card. If the cashier had said something, I would have paid in cash. I'm assuming that there must have been a sign somewhere that I missed, but it just kind of left me with a bad feeling. If you're going to charge me extra, let me know in advance.

Re: Paying Credit Card Merchant Fees

We rescue cats — Fri, 17 Jan 2025 01:04:39 GMT

I so seldom have cash though I have been trying to make sure I have it, I forgot about carrying my checkbook....thanks for that reminder! When I had my business we accepted Amex cards, they strictly prohibited charging a fee to accept their card, I don't knoow if that still stands or not. It's getting to be the new thing around here as well, even my chiropractor is doing it.

Re: Paying Credit Card Merchant Fees

FancyPhillyshopper — Fri, 17 Jan 2025 01:09:32 GMT

We have been buying gas with cash for several years now. The price is always cheaper per gallon, and all gas stations in our tri-state (PA, NJ, DE) area accept cash, as well as NY and other states North.

I also think it is more secure, as many times gas stations have been the victims of those skimmer devices for credit cards.

Well, a few years ago we discovered that in Vermont almost EVERY restaurant and small store charges that 3% extra cost. So when we travel there, we only pay in cash, except for the hotels, and if we had to, I would drive to the ATM and give them the cash.

I guess the credit card processing fees have increased, but I do not really think the costs should be passed on to us, the consumers.

Recently I just saw it happening around here somewhere, but I cannot recall the location.

Should we go back to writing checks in person at the counters?

Re: Paying Credit Card Merchant Fees

We rescue cats — Fri, 17 Jan 2025 01:11:46 GMT

@shoesnbags Absolutely agree! Unless it is posted somewhere I would be miffed as well, and I am NOT normally price sensitive about things (Just ask my husband!)