Had a Facebook friend fussing about going to an eatery chain and seeing a sign stating that they were going to charge an extra 3.5% if you use a card.
It’s my understanding that this is a growing trend as the merchant is paying so much in fees for this customer convinence. These fees that the merchants are getting hammered with from the CC companies are funding the rewards programs(cash back/airline miles/gifts/etc).
Frankly the CC company has folks over a barrel. Customer likes the convenience and the merchant must provide it if they want the customer to buy. The CC folks are getting paid twice, charging the merchants for using their service and charging interest to the consumer for not paying off their bill monthly.
I saw a couple months ago that a local merchant (beauty shop/clothing store) was paying in the hundreds of $ every month in fees and they were considering charging more for running cards. I know gas stations often advertise a cheaper price for cash. I know of a furniture store locally that was doing this 15 years ago because in the owners words “I’m not paying for your rewards.”
Have you all seen a growing trend in merchants charging more for card usage and what is your take on it?
The Facebook friend is basically saying that if the merchant doesn’t eat it as operational costs then they won’t shop there. Others commented that the merchant should just go up on their prices but to me that has the potential to hurt them with competitive pricing.
It’s my understanding that this is a growing trend as the merchant is paying so much in fees for this customer convinence. These fees that the merchants are getting hammered with from the CC companies are funding the rewards programs(cash back/airline miles/gifts/etc).
Frankly the CC company has folks over a barrel. Customer likes the convenience and the merchant must provide it if they want the customer to buy. The CC folks are getting paid twice, charging the merchants for using their service and charging interest to the consumer for not paying off their bill monthly.
I saw a couple months ago that a local merchant (beauty shop/clothing store) was paying in the hundreds of $ every month in fees and they were considering charging more for running cards. I know gas stations often advertise a cheaper price for cash. I know of a furniture store locally that was doing this 15 years ago because in the owners words “I’m not paying for your rewards.”
Have you all seen a growing trend in merchants charging more for card usage and what is your take on it?
The Facebook friend is basically saying that if the merchant doesn’t eat it as operational costs then they won’t shop there. Others commented that the merchant should just go up on their prices but to me that has the potential to hurt them with competitive pricing.