Status of Everything Attachments

[Eagle1]

I never use cash anymore other than for purchases of $20 or less. If a business wants to charge me extra, I will patronize someone else. It’s becoming rare that they try to charge extra for credit cards. I pay my bill every month and don’t carry a balance.

OH but you are, everyone has to cover the extra costs of CC transactions. Why would a business set a lower profit margin?
Every business has to cover their expenses and pay the bills. Most just make an extra ~3% more on cash sales but they sure as heck are not taking a hit to their margin.
Bottom line is that every CC transaction is sending 3% cut to the bankers of the world, just wait for digital money and then even the allowance for your kids will sent 3% to the bankers or the government.

 

[shooterdon]

I never use cash anymore other than for purchases of $20 or less. If a business wants to charge me extra, I will patronize someone else. It’s becoming rare that they try to charge extra for credit cards. I pay my bill every month and don’t carry a balance.

Almost every local (non chain) restaurant charges to use a CC in my area.

 

[jyoutz]

Almost every local (non chain) restaurant charges to use a CC in my area.

I don’t know any business and especially not restaurants in my area that does that.

 

[Eagle1]

We tried surcharge but people don't like it, so we just raised nightly rates....

 

[airbiscuit]

I've talked with some businesses who figure the cc card fee is just a cost of doing business, increases sales, streamlines the accounting, and protects from dealing with bad checks.

Not a total wash, but it also doesn't bother them that much,

 

[jyoutz]

OH but you are, everyone has to cover the extra costs of CC transactions. Why would a business set a lower profit margin?
Every business has to cover their expenses and pay the bills. Most just make an extra ~3% more on cash sales but they sure as heck are not taking a hit to their margin.
Bottom line is that every CC transaction is sending 3% cut to the bankers of the world, just wait for digital money and then even the allowance for your kids will sent 3% to the bankers or the government.

Just saying that CC usage is standard practice at almost all businesses and it’s rare that I’ve had one want to charge additional fees. I’m sure it occurs, but I have only rarely encountered that at a few small mom and pop businesses.

 

[MossRoad]

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[MoKelly]

We tried surcharge but people don't like it, so we just raised nightly rates....

^^ This exactly.

Anyone who thinks businesses don’t charge to cover credit card fees (either overtly or baked into prices) has never owned a business.

Milton Friedman said it a long time ago —- there is no such thing as a free lunch.

 

[MossRoad]

I don’t know any business and especially not restaurants in my area that does that.

Many locally owned restaurants around here do that. So do a lot of flea markets and antique shops.

 

[Eagle1]

I've talked with some businesses who figure the cc card fee is just a cost of doing business, increases sales, streamlines the accounting, and protects from dealing with bad checks.

Not a total wash, but it also doesn't bother them that much,

Maybe they saved enough to keep prices but every business has to cover their costs with gross income or you won't be open long no matter how good or cheap their are. Raise a cost of doing business, prices have to go up or something has to be cut. Ask the fast food industry (not subway) in CA.

 

[jyoutz]

Many locally owned restaurants around here do that. So do a lot of flea markets and antique shops.

Must be a regional thing.

 

[jyoutz]

Maybe they saved enough to keep prices but every business has to cover their costs with gross income or you won't be open long no matter how good or cheap their are. Raise a cost of doing business, prices have to go up or something has to be cut. Ask the fast food industry (not subway) in CA.

I’m sure that the fees are built into the cost of goods and services. Because it’s SOP that most purchases are done with cards.

 

[MossRoad]

Must be a regional thing.

I've seen it in about every town we visit, small to large. Pennsylvania to Oklahoma and all points in between.
(sounds like a train schedule )

 

[MossRoad]

Just a bit of trivia...

About 35% of people pay off their credit card balances every month. About 65% of people admit carrying a balance more than a month.

 

[Eagle1]

I’m sure that the fees are built into the cost of goods and services. Because it’s SOP that most purchases are done with cards.

You see it in small towns where most are paying cash and just the tourists pay via CC. I flat out tell people we prefer cash to help keep prices down. Works more often than you'd think. Before the smaller services like Square, Stripe, etc came about, merchants services was costing me a minimum of 100 per month even if we did not use the service (like winter) just to keep an account open to be able to take cards. These days it's 3-4% with secure reader, add a swipe charge for strip reading and more for key in.
I'd say 80% of our business is cash then again there is just me, myself and I on the payroll. Wife does the office for a place to live.

 

[sixdogs]

Just saying that CC usage is standard practice at almost all businesses and it’s rare that I’ve had one want to charge additional fees. I’m sure it occurs, but I have only rarely encountered that at a few small mom and pop businesses.

I've been paying the small mom and pop places in cash for the last while. It helps them out and I'm OK with it. In smaller rural areas you have to support local places because they are part of the community you live in and that's the reason you live there.

The local people would open their store for me at night in an emergency. That sure has a value.

 

[jyoutz]

I've been paying the small mom and pop places in cash for the last while. It helps them out and I'm OK with it. In smaller rural areas you have to support local places because they are part of the community you live in and that's the reason you live there.

The local people would open their store for me at night in an emergence. That sure has a value.

True. I was just saying that I rarely encounter a business that charges extra for CC. Only a few very small businesses, and not all of the small businesses do this in my community and larger region. Cash is actually inconvenient for me because my paycheck is direct deposited and I have to make a trip to get cash. It’s convenient to pay the CC by transferring funds from my checking account online.

 

[MossRoad]

Not only do some places charge extra for CC purchases, some have minimum purchases for CC use, and some only accept cash.

Of those that only accept cash, they either have their own ATM in the lobby, or a sign with directions to the nearest ATM.

 

[dstig1]

True. I was just saying that I rarely encounter a business that charges extra for CC. Only a few very small businesses, and not all of the small businesses do this in my community and larger region. Cash is actually inconvenient for me because my paycheck is direct deposited and I have to make a trip to get cash. It’s convenient to pay the CC by transferring funds from my checking account online.

For a long time it was against the rules of the CC giants to charge extra for use of a CC (note: not the same as "illegal" which I have heard some say. It wasn't law, just the terms & conditions of the CC companies). Their workaround to try to keep it legal was that they did allow businesses to offer cash discounts. Subtle difference, but it tilted the field towards CCs a bit, I guess...

Some years back the CC's lost a big federal lawsuit (anti-trust?) over this and had to stop prohibiting it. But I suspect the habit got ingrained so much that many did not change. I have started seeing it more at smaller local shops & restaurants more recently, especially after the pandemic and inflation being so high these past 3 years.

Of course the problem is if I pay with cash all too often it requires breaking a hundo, and they sometimes struggle to do that. Soooo...if you want people to pay in cash, you better have enough change on hand for 50's and 100's these days as that is what comes out of the ATMs all too often...

 

[jyoutz]

For a long time it was against the rules of the CC giants to charge extra for use of a CC (note: not the same as "illegal" which I have heard some say. It wasn't law, just the terms & conditions of the CC companies). Their workaround to try to keep it legal was that they did allow businesses to offer cash discounts. Subtle difference, but it tilted the field towards CCs a bit, I guess...

Some years back the CC's lost a big federal lawsuit (anti-trust?) over this and had to stop prohibiting it. But I suspect the habit got ingrained so much that many did not change. I have started seeing it more at smaller local shops & restaurants more recently, especially after the pandemic and inflation being so high these past 3 years.

Of course the problem is if I pay with cash all too often it requires breaking a hundo, and they sometimes struggle to do that. Soooo...if you want people to pay in cash, you better have enough change on hand for 50's and 100's these days as that is what comes out of the ATMs all too often...

Not to mention that buying fuel with cash is incredibly inconvenient. One attendant servicing 20 fuel pumps plus a convenience store. The business model for fueling stations is built around card use.