Community Chat

[Sooner]

Apparently the 30 percent Apple charges is the fee App developers to market their apps through the Apple store.  That's a whole different deal.   So 30 percent of the App price goes to Apple.  

Hey, it's business.  The App Store is one heck of a marketing tool.

[lovesrecess]

30% sure sounds new...that can’t be right...they would be losing more customers than they could ever have. AmExhas has always had a higher fee than others, so lots of places don’t accept it, even now.

[Kalli]

@sunshine45  @sidsmom , I guess I could’ve explained it a little better. It was a flat fee. I think that’s what made me mad about the whole deal since mine was a single order.

Their sign was posted by the register which I saw when I went to pick up my food. The sign said a charge of $1.50 would now be added to all payments made by credit card. My order total was $9.99. Dh was on business trip and this place was my Go-to when he’s away. Not really much motivation to cook for one. 

Point was, if they’d informed me when I ordered that they’d started charging $1.50 for cc, I’d have brought cash since my order was small.

We try hard to patronize the smaller, local businesses but in this case I just stopped going there. 

[jannabelle1]

Whoa....this is all confusing. Apple iTunes or Apple is not a credit card issuer or processor (that I'm aware of). I don't think this has anything to do with the discount rate (percentage) that businesses pay to their bank/credit card companies for processing credit/debit payments. Usually that percentage is less than 1%, but it's all based on the size of the company and the number of credit/debit transactions that they have. I must be missing something.

[sunshine45]

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@jannabelle1 wrote:

Whoa....this is all confusing. Apple iTunes or Apple is not a credit card issuer or processor (that I'm aware of). I don't think this has anything to do with the discount rate (percentage) that businesses pay to their bank/credit card companies for processing credit/debit payments. Usually that percentage is less than 1%, but it's all based on the size of the company and the number of credit/debit transactions that they have. I must be missing something.

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@jannabelle1 

the original post is referring to software developers who distribute and sell their apps via apple itunes or apple software app on phones/tablets. it really has nothing to do with credit card processing at all.

[CrazyDaisy]

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@reiki604 wrote:

There was a conversation about this on my Neighborhood forum. It was about the store I mentioned upthread. The consensus is that the business will be able to hide some of their sales as it will be cash only and not pay taxes on it. A win-win for storeowners and a loss for the consumer.

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To assume that the business is going to break the law by not properly recording sales is a stretch.  They probably are simply trying to recover some of the administrative costs of handling credit sales in order to keep prices down.

[123 Jewelry]

The fee charged is typically referred to as the interchange rate.  The rate is charged to the merchant by their credit card processor.  The average rate is around 1.81% for credit cards and is lower for debit cards at around 0.3%.  There is also a difference in fees based upon swiped cards vs. keyed cards.  

AmEx charges what is called a Discount Rate, however, fewer people use AmEx and those with AmEx tend to spend more than the average Visa or MC holder.

It is really the "cost of doing business" for those who accept cards.  We have become a "cashless" society and merchants really need to absorb the cost and accept them.  

This is a necessary evil and I for one rarely have cash on me as I prefer to use my debit or AmEx for purchases.  In addition, using credit cards give you protection if something you purchase is not satisfactory etc.  

I think it is a mistake for retailers to attempt to tack these fees on to customer purchases.  It will likely be a turnoff to customers and I feel consumers need to stand up to this and not accept that as an option.  Fees at banks are high enough wihout getting a fee to use the card too.  

[sashamatthews]

My company has various gasoline credit cards for employee use.  Shell recently changed its credit card service.  I pay all credit card bills in full every month, so I was surprised to get a charge for $10.00 on my bill for a paper statement.  When I called the credit card company about it, I told them I had received no notice of such a fee with the new system.  I was told to pay my bill, deducting the $10.00.  That is what I did.  The next month the statement had a $1.00 finance charge on the $10.00 I had not paid.  Am I going to argue over a dollar?

[lmt]

Many gas stations in my area have two prices for gas - one price if you use a credit card and a cheaper price if you pay with cash.

My dentist offers a discount if you pay in cash or a check instead of using a credit card.

I noticed one of our restaurant's has begun adding a surcharge if you use a credit card. It very clearly states on the menu that 3% will be added to the bill.

On a (sort of) similar note, several restaurants have begun charging between .50  - $1 if you request a container to take home any leftover portion of your meal. 

Frankly, I'm surprised that more businesses haven't passed on the surcharge they pay to the credit card companies to their customers. I guess it's only a matter of time before more and more places will start.

[sunshine45]

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@sashamatthews wrote:

My company has various gasoline credit cards for employee use.  Shell recently changed its credit card service.  I pay all credit card bills in full every month, so I was surprised to get a charge for $10.00 on my bill for a paper statement.  When I called the credit card company about it, I told them I had received no notice of such a fee with the new system.  I was told to pay my bill, deducting the $10.00.  That is what I did.  The next month the statement had a $1.00 finance charge on the $10.00 I had not paid.  Am I going to argue over a dollar?

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interesting @sashamatthews 

i have both exxon/mobil cards and shell cards and i get paper statements.

have never seen that $10 surcharge on my bill?