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Any business owners here going to start CC usage surcharges?


DickSimmons
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With the recent settlement with CC companies, one of the things now allowed will be charging a surcharge for CC usage. This wasn't allowed in the past, but now will be. I think there are 10 states in which it is still not legal to do though. I guess some places having been doing this for a while now, such as gas stations, but I've heard that rather than there being a surcharge, they've just been offering a discount for cash -- which has always been legal.

 

I feel like it could kinda be annoying to customers if you have to explain that there is a surcharge with CC usage, though it really does add a nice chunk of change directly to the bottom line. I don't want to be the first to start doing it, but it is tempting. CC's are probably extremely efficient in major retail, but for small businesses, cash is really no more difficult to deal with and I'm already paying my bank fees to handle large amounts of cash. I see it as a convenience that customers should be paying. They are the ones getting reward points and convenience, not me.

 

Thoughts?

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  • 1 month later...
With the recent settlement with CC companies, one of the things now allowed will be charging a surcharge for CC usage. This wasn't allowed in the past, but now will be. I think there are 10 states in which it is still not legal to do though. I guess some places having been doing this for a while now, such as gas stations, but I've heard that rather than there being a surcharge, they've just been offering a discount for cash -- which has always been legal.

 

I feel like it could kinda be annoying to customers if you have to explain that there is a surcharge with CC usage, though it really does add a nice chunk of change directly to the bottom line. I don't want to be the first to start doing it, but it is tempting. CC's are probably extremely efficient in major retail, but for small businesses, cash is really no more difficult to deal with and I'm already paying my bank fees to handle large amounts of cash. I see it as a convenience that customers should be paying. They are the ones getting reward points and convenience, not me.

 

Thoughts?

I am scared to pass my cc fees to my customers. I personally get annoyed as hell when a merchant does that to me.

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I am scared to pass my cc fees to my customers. I personally get annoyed as hell when a merchant does that to me.

 

Yeah, We're debating this currently as well. I figure it's just a cost of doing business and no different than a 2/10 for quick payment. But rest assured lots of retail merchants will start nailing us with fees vs lowering the prices for cash payment.

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There are several places that I can think of here in Florida and in Ohio where I am from that have offered a discount for a cash purchase, most that I can remember being either liquor stores or gas stations. As a consumer I can tell you that if I was thinking ahead about the purchase I would try to avoid going to the places that I knew would charge that to me, even though it was probably the same price for a credit/debit charge that everyone else was charging. One of my biggest problems, especially with gas stations for instance would be that they would advertise the "cash" price then when you when to use their service would find the price to be different. I would tend to avoid those business' when I thought enough ahead. That being said if this becomes the normal, things would change, but as a business, I would not want to be the innovator for the practice. I would see this going a lot like the fees banks started charging last year. On a sidenote, the gas station that sticks out in my mind doing this last year is out if business now.

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  • 3 months later...

if anyones in a business that sees regular price increases on goods/services it would make more sense to just build it into the cost, and then you have both the choice of offering a cash discount as well as the benefit of not pissing off your customers

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  • 1 year later...
if anyones in a business that sees regular price increases on goods/services it would make more sense to just build it into the cost, and then you have both the choice of offering a cash discount as well as the benefit of not pissing off your customers

 

That's exactly what we do. There's also a few other things you can do to make up for the cc fees depending on your business.

 

And as far as the gas stations I go to the ones that charge the same price for credit card and get 5% back on my card some months.

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