3% Credit Card SWIPE FEES to be paid by CONSUMER, not Retailer

[angelatc]

it doesn't really matter, nothing stopped merchants from hiding the passed on cost anyway.

Oh yes. You underestimate the power of a competitor. If you're in business playing by the rules, and the buy down the road is cutting corners, enabling him to undercut you.....you're going to turn him in.

[Tpoints]

Oh yes. You underestimate the power of a competitor. If you're in business playing by the rules, and the buy down the road is cutting corners, enabling him to undercut you.....you're going to turn him in.

I do underestimate that, because my experience has told me they're more likely to collude to screw the consumer, not compete to win the consumer. (but I sure hope I am wrong)

[RabbitMan]

At my store once we realized the scope of creditcard fees on a business that operates on transactions in the $8-$20 range, we raised all of our prices by 50 cents. This credit card non-sense should be passed on to the consumer so it is visible, it is ridiculous. Banks charge the business for taking their card from a customer, and then the banks turn around and charge the customer for interest on the debt they just accumulated. Total crap.

Big businesses create their own creditcards to bypass the fee, like Target's Visa Card that earns you 5% cash back, etc.. Small businesses end up both footing the bill and looking like jerks for having higher prices!

[Tpoints]

At my store once we realized the scope of creditcard fees on a business that operates on transactions in the $8-$20 range, we raised all of our prices by 50 cents. This credit card non-sense should be passed on to the consumer so it is visible, it is ridiculous. Banks charge the business for taking their card from a customer, and then the banks turn around and charge the customer for interest on the debt they just accumulated. Total crap.

Big businesses create their own creditcards to bypass the fee, like Target's Visa Card that earns you 5% cash back, etc.. Small businesses end up both footing the bill and looking like jerks for having higher prices!

Credit card companies are private property, they have no obligation to make your life/job easier, and as far as I know, there is no legal restriction (whether IP or special favors) that prohibit competitors. Oh, and it's not illegal to accept cash only either, which many have went ahead and did, even if it means they have to install an ATM on their site.

[presence]

Credit card fees are already paid by the consumer. Now they just won't be paid by cash customers.

^^^

If you think about it... status quo... If the consumer is paying the same price credit or cash at a major retailer (not a local mechanic who doesn't report cash transactions).... then essentially:


Cash customers subsidize credit card fees.

[Tpoints]

^^^

If you think about it... status quo... If the consumer is paying the same price credit or cash at a major retailer (not a local mechanic who doesn't report cash transactions).... then essentially:


Cash customers subsidize credit card fees.

they definitely do, unless the seller is stupid to pay those fees themselves.

[Henry Rogue]

Buddy of mine has an auto shop .When he first started he did not accept cards , just cash , checks , even post dated checks to payday for regular customers. He accepts cards now . He just bumped up the hourly labor charge slightly to cover the fee. Unless I am missing something, the consumer is always going to pay the fee in pricing.Look at e bay , most people just pad the shipping charge there by the looks of it .

the business always pass on the cost of doing business. that is how it makes a profit. so any increase in the cost of doing business is an increase in the price of the consumer. thus, the consumer is the one picking up the tab.
It would be great if you had to options- cash/check for 3% less or card for 3% more, then people could see the increase and vote with their money appopriately.
But i have yet to see anyone do such a thing.
So the business charges the cash customers the premium also.

There is a gas station/truck stop in my town that charges 3 cents less per gallon if you pay in cash. I try to use cash as much as I can in general. Someday I hope to use PM.

[KingNothing]

Why do these idiots try to sabatoge their own business? If customer have to pay to use credit cards, they will just look for an option that doesnt charge them.

Whether you pay directly or indirectly, you still pay. And whether or not the credit card company even chooses to pass the cost on to the retailer or not, there is still a cost inherent in the transaction that the credit card company will have to recoup at some point.