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(MSN)   Those of you who think you're so smart when use your credit card to rack up reward points, stores are on to you. Get ready for the "Credit Card Checkout Fee"   (money.msn.com) divider line 265
    More: Obvious, credit cards, interchange fee, issuing bank, MasterCard, Consumer Action, rewards programs, visas  
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19716 clicks; posted to Main » on 22 Jan 2013 at 9:40 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-22 07:10:45 PM  
So basically the banks are like, "let's shake down our customers for some more money."  Ok, that was nice, now let's come up with a new idea, "let's find a different way to shake down our customers for more money"...etc etc
 
2013-01-22 07:12:01 PM  
Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.
 
2013-01-22 07:22:21 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


I blame the Jews.
 
2013-01-22 08:09:54 PM  
Up to 4% more money per credit card transaction, and retail profit margins are 3-4%. Yet some big-box retailers are not on board with this agreement.  I wonder what else is in it?
 
2013-01-22 08:29:28 PM  
Some stores around me do this already, except they call it a "cash discount" instead.

These fees are a real cost to retailers though, so I support this. I know the cheapest gas station near me by far is consistently the one that does not allow credit card purchases (the machines only accept debit cards or cash).
 
2013-01-22 08:36:28 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


I guess if you want to attack it from the angle of "CC processing fees are in the expense side of the ledger" then yeah. But that isnt how it works in my case. I take in 750K through credit/debit cards. I sell products at SRP(which is printed on the product). Regardless of my processing fees, if you buy a Munchkin box set off me, it will cost $24.95-- cash, credit, gift card, whatever

/also, I would never ever add a CC fee to my customers' transactions
//I depend on customer loyalty more than box stores though
 
2013-01-22 08:41:57 PM  

Supes: Some stores around me do this already, except they call it a "cash discount" instead.


Gas stations around here did it that way in the 80s. It eventually pissed everyone off. And there are a lot fewer people(%) who carry cash on them now. As a retailer I accept the necessary evil of processing fees and try to mitigate them by shopping processors every year. Also, we try to run cards as 'debit' as much as possible.
I just don't see younger Americans going back to a cash-based system.
 
2013-01-22 08:44:21 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


Which won't stop any of them from taking the fee on anyway.
 
2013-01-22 08:53:21 PM  

GAT_00: Which won't stop any of them from taking the fee on anyway.


I would be surprised if they do. As mentioned in TFA, the retailers most likely to be able to get away with this would be specialty stores whose customers are limited in shopping options. However, they are also the type of stores more dependent on customer loyalty. Yeah a couple chains might try it as subversively as they can, but in this information age bad PR and social media hate spreads pretty quick. Even TFA questions whether this will become a thing.
 
2013-01-22 08:58:35 PM  

dugitman: I would be surprised if they do.


Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?
 
2013-01-22 09:09:15 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


Yes, I have to agree with that. Some places do allow for a cash discount, and if I am buying something more than say $100 from a local store I always ask if I can get a discount for paying cash. Most of the time I can.

I won't pay any extra fees because they are illegal in Florida. I do have some rewards cards but I really haven't been using the rewards. That was one of my resolutions for the new year, to take advantage of every cash back or reward when I can reliably do so. I'm not going to buy things I don't need, but if Barclay Card wants to give me back 3% at gas stations until April 1st, that is fine with me.
 
2013-01-22 09:10:24 PM  

GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?


Yes, all business are corrupt, greedy farks. And you wonder why I think you're a conspiracy nut.

/not that you can see this as you have me on ignore
 
2013-01-22 09:21:03 PM  

GAT_00: Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?


I've been a business owner for 20 years and make a modest living selling product to customers for reasonable prices. I also have (essentially) the only specialty stores of my kind in the area. I'm proactive in the community, spend locally as much as possible, and contract out any work I need with customers able to do it. Most small business owners are much like me. Not some kind of Uruk Hai  scouts for the local Chamber of Commerce
 
2013-01-22 09:32:35 PM  

GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?


There's more than one grocery store - including a farmer's market - in my area, so this hypothetical scenario will remain just that, but for the sake of playing along....  I would wait until the only grocery in my area* does it before getting my panties in a bunch, at which point, I would figure out if it's cheaper to withdraw a certain amount in cash from the bank every month for groceries.  In the meantime, I will continue to use my credit card as much as I can since I rake in 2-3 times more reward dollars than the annual fee.
 
2013-01-22 09:34:28 PM  
*I reserve the right to put extra asterisks in my just to mess with people's minds.

/That or I badly edited it...
 
2013-01-22 09:40:57 PM  
Discouragement of credit card debt would be detrimental to banking interests and beneficial to society as a whole, so I think I know where this is going.
 
2013-01-22 09:43:34 PM  

dugitman: GAT_00: Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?

I've been a business owner for 20 years and make a modest living selling product to customers for reasonable prices. I also have (essentially) the only specialty stores of my kind in the area. I'm proactive in the community, spend locally as much as possible, and contract out any work I need with customers able to do it. Most small business owners are much like me. Not some kind of Uruk Hai  scouts for the local Chamber of Commerce


Flab: GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?

There's more than one grocery store - including a farmer's market - in my area, so this hypothetical scenario will remain just that, but for the sake of playing along....  I would wait until the only grocery in my area* does it before getting my panties in a bunch, at which point, I would figure out if it's cheaper to withdraw a certain amount in cash from the bank every month for groceries.  In the meantime, I will continue to use my credit card as much as I can since I rake in 2-3 times more reward dollars than the annual fee.


But you charge as much as you can without dropping demand, right?  That's the basic tenet of capitalism.  Maximize your profit as much as possible.  That's all capitalism is when you come down to it.  So if you don't have competition, why wouldn't you enact this fee?  If you can get more money from the fee than you lose in customers, why wouldn't you?
 
2013-01-22 09:44:56 PM  
I bet one of the grocery stores in the area won't do this. That will be the one I'll probably shop at.
 
2013-01-22 09:45:52 PM  
They already do that here in Australia. It sucks, but there you have. No revolt yet.
 
2013-01-22 09:47:10 PM  

GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?


I'm going to pay by check.
 
2013-01-22 09:47:13 PM  

Xetal: I bet one of the grocery stores in the area won't do this. That will be the one I'll probably shop at.


Grocery stores have razor thin profit margins. You're already paying it, so you'll need to find the one that does charge so you can pay the lower, non-transaction fee amount with cash.
 
2013-01-22 09:49:22 PM  
I have a CC that's associated with Kroger ( Fred Meyer ). I don't see them charging me extra, 'cause the card encourages me to do most of my shopping there; earning "points" for cash back and a discount on gasoline...
 
2013-01-22 09:50:34 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


That's why you should always ask for a cash discount. Good merchants will provide one; bad merchants don't get repeat business. You may be surprised by how often discounts are available, but only if you ask for them.
 
gja [TotalFark]
2013-01-22 09:50:52 PM  

Rapmaster2000: Xetal: I bet one of the grocery stores in the area won't do this. That will be the one I'll probably shop at.

Grocery stores have razor thin profit margins. You're already paying it, so you'll need to find the one that does charge so you can pay the lower, non-transaction fee amount with cash.


^^THIS^^

I will hit the ATM of my bank prior to shopping.
Then the banks can all collectively bugger each other blind.

/bastards-the-lot-of-them
 
2013-01-22 09:51:22 PM  
Just like my stupid power company, pay online $2.00 fee, take $98.00 in ones and change to the drive through, no additional fee.
 
2013-01-22 09:52:37 PM  

Supes: Some stores around me do this already, except they call it a "cash discount" instead.

These fees are a real cost to retailers though, so I support this. I know the cheapest gas station near me by far is consistently the one that does not allow credit card purchases (the machines only accept debit cards or cash).


The reason that this happened was because retailers were forbidden to charge credit card users a surcharge to make up for the costs sustained in taking the cards. Instead, they just found the easiest loophole ever and called it a "cash discount."
 
2013-01-22 09:53:24 PM  
A little tip to people who shop at GameStop, sign up for the Rewards Program online. I signed up for it and totally forgot about it, months/years later a GameStop employee prompted me to check it out. Not only was I already a member, I had several thousand points to spend. Turns out they had been dropping a few points in my account every time I made a purchase.The rewards catalog isnt amazing, but it has a bunch of cool little doohickeys, and you can even exchange your points for MS points to purchase content on Xbox.

I got a slick Mario rubber keychain (cooler than it sounds!) and the replica dog tags they wear in Gears of War 3, and a bunch of MS points.

/zomg brick and mortar still exists?
 
2013-01-22 09:53:50 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


That's always my point. I have a premium Visa card and I know that the retailer pays a larger percentage per transaction because I use it all the time for the points. (I almost typed "pints" which would have been accurate since I'm in my local right now and I will be using my card). Anyway, the folks paying cash do, in fact, subsidize these premium cards because the menu prices tend to edge up marginally to compensate. The fairest policy is to let the overages devolve back to the card/premium card users. Of course, at that point, the points will not be worth it to me.
 
2013-01-22 09:55:11 PM  

GAT_00: dugitman: GAT_00: Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?

I've been a business owner for 20 years and make a modest living selling product to customers for reasonable prices. I also have (essentially) the only specialty stores of my kind in the area. I'm proactive in the community, spend locally as much as possible, and contract out any work I need with customers able to do it. Most small business owners are much like me. Not some kind of Uruk Hai  scouts for the local Chamber of Commerce

Flab: GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?

There's more than one grocery store - including a farmer's market - in my area, so this hypothetical scenario will remain just that, but for the sake of playing along....  I would wait until the only grocery in my area* does it before getting my panties in a bunch, at which point, I would figure out if it's cheaper to withdraw a certain amount in cash from the bank every month for groceries.  In the meantime, I will continue to use my credit card as much as I can since I rake in 2-3 times more reward dollars than the annual fee.

But you charge as much as you can without dropping demand, right?  That's the basic tenet of capitalism.  Maximize your profit as much as possible.  That's all capitalism is when you come down to it.  So if you don't have competition, why wouldn't you enact this fee?  If you can get more money from the fee than you lose in customers, why wouldn't you?


Absolutely, but why weren't you already charging more if there were no competition? Why is this new fee necessary to charge the profit optimizing price?
 
2013-01-22 09:55:36 PM  

ambassador_ahab: So basically the banks are like, "let's shake down our customers for some more money."  Ok, that was nice, now let's come up with a new idea, "let's find a different way to shake down our customers for more money"...etc etc


Funny thing I wanted to call banks greedy, but now I will call consumers idiots. Only a moron would pay a fee for paying for goods and services. Even funnier is those who believe in going cashless are eating up the idea of having to pay a fee for going cashless.
 
2013-01-22 09:55:59 PM  

Tom_Slick: Just like my stupid power company, pay online $2.00 fee, take $98.00 in ones and change to the drive through, no additional fee.


SCREW THIS. i AM GOING ALL BILLY MAYS NOW. THIS IS SOMETHING THAT NEEDS TO END IMMEDIATELY. THE BANK I HAVE MY CAR LOAN THROUGH CHARGES ME A $5 CONVENIENCE FEE TO PAY ONLINE. IT SAVES THEM MONEY, YET I GET PUNISHED. NOW THEY GET A PIECE OF PAPER WITH A MONEY ORDER INSIDE WRAPPED IN DUCT TAPE 20 TIMES OVER. THIS SHIAT REALLY NEEDS TO STOP YOU GREEDY BASTARDS.
 
2013-01-22 09:56:40 PM  

untaken_name: bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.

That's why you should always ask for a cash discount. Good merchants will provide one; bad merchants don't get repeat business. You may be surprised by how often discounts are available, but only if you ask for them.


merchants who cheat on their taxes will provide one. Merchants who don't want to look like tax cheats won't.
 
2013-01-22 09:58:15 PM  

Tom_Slick: Just like my stupid power company, pay online $2.00 fee, take $98.00 in ones and change to the drive through, no additional fee.


$98 electricity bill?  Is that what I got from your post?  Please tell me that was simply an example.  Pretty please?

/haven't had a power bill lower than $200 in twelve years
 
2013-01-22 09:58:52 PM  
i.imgur.com
 
2013-01-22 09:59:50 PM  
There's a cost to handling cash too, including the extra risks of robbery that comes from sitting on a lot of cash, armored car pickups, employee theft, employee mistakes, and extra time required to handle cash.
 
2013-01-22 10:01:40 PM  

Xetal: I bet one of the grocery stores in the area won't do this. That will be the one I'll probably shop at.


I doubt it will be grocery stores charging this fee. Unless they can market themselves as cheaper then their non-fee competition, in which case cash and debit card customers will flock to their store. So it can work.
 
2013-01-22 10:02:55 PM  
Within 10 years, the IRS will be replaced by Visa.
 
2013-01-22 10:03:00 PM  

dahmers love zombie: $98 electricity bill? Is that what I got from your post? Please tell me that was simply an example. Pretty please?


Gas heat, water, and stove so in the winter I usually run less than $100. My bill usually around runs between $150-200 during AC season. My house is really well insulated and my family doesn't mind wearing sweaters in the winter.
 
2013-01-22 10:04:37 PM  

Lost Thought 00: Within 10 years, the IRS will be replaced by Visa.


If that meant I no longer have to file taxes I would be OK with that.
 
2013-01-22 10:06:48 PM  
I choose to pay your fee with this.

baglifepoker.squarespace.com
 
2013-01-22 10:07:02 PM  
Well, I'm glad I'm in Massachusetts, then. That charge is banned here.

I've known about the interchange fee for a while now, and since I use my debit card more often than I use my credit card, I avoid that fee to begin with. Early on, I would ask the cashier if the debit or credit card has "that fee" attached to it, and I've received a good many Thank Yous when I put that purchase on my debit card.
 
2013-01-22 10:07:17 PM  

dugitman: Supes: Some stores around me do this already, except they call it a "cash discount" instead.

Gas stations around here did it that way in the 80s. It eventually pissed everyone off. And there are a lot fewer people(%) who carry cash on them now. As a retailer I accept the necessary evil of processing fees and try to mitigate them by shopping processors every year. Also, we try to run cards as 'debit' as much as possible.
I just don't see younger Americans going back to a cash-based system.


Canadian Tire thrived on the cash discount thing with Canadian Tire money (aka currency coupons usable at their stores)
 
2013-01-22 10:07:47 PM  

bingethinker: Actually, the store's cost for handling credit cards is already rolled into their prices, and therefore they charge you even if you pay cash.


This is why Sam's Club does not take visa or American Express credit cards. They have worked out deals with Discover and MasterCard to not charge as high of a fee to use their cards where Visa and American Express will not work a deal like that.

/been drinking for a while, please excuse grammar and spelling.....
 
2013-01-22 10:09:20 PM  
good thing up here in Maine its illegal for a business to do this.
 
2013-01-22 10:10:58 PM  

GAT_00: So if you don't have competition, why wouldn't you enact this fee?


Because if you're a grocery store and don't have competition, it means you're in the outskirts of the Middle of Nowhere, therefore the people you are screwing over are the people who fix your car, cut your hair, teach your kids and prescribe your medicine when you're sick.  Plus there's a likelyhood that they're also your cousins, in-laws or neighbors.  Oh, and most of them are volunteer firefighters, just like you, and you are all part of the church choir, so you don't do it because it will seriously piss them off.

I-can-be-a-dick-if-I-want-to capitalism only works in a setting where you don't have a personal relationship with your customers, and where there are new customers to replace those you've pissed off.
 
2013-01-22 10:12:29 PM  
Looks like I'll be using the discover rather than the visa.
 
2013-01-22 10:13:16 PM  
Prior to the early-90's or so this was standard procedure everywhere. You had to pay extra to use credit cards. It's when they stopped those fees that credit cards really took off and credit card companies became big cheese.

If they start charging those fees again I'll just go back to cash like I did in the 80's. Or just not buy stuff at all unless I really need it. If the businesses and credit card companies don't want my money, fine, fark 'em.

No is no way in hell I'm paying yet another tax. We're all getting nickel and dimed to death. Everyone these days it digging their chunk out of my pockets. We're getting less stuff than ever for the same amount of money or the prices are inching up. Meanwhile us consumers are strapped and trying to save money. Which makes companies increase prices, cut quality, cut quantity, etc. so they can meet ever increasing budgets and profit margins. Which causes people to cut back and around we go. The whole thing is going to collapse.
 
2013-01-22 10:13:40 PM  

BokerBill: GAT_00: dugitman: I would be surprised if they do.

Why?  Businesses are corrupt, greedy farks.  And if the only grocery in your area does it, what are you going to do?

I'm going to pay by check.


Now you have to wait while the cashier finds the manager to ok the check. And he's out back having a smoke break and won't be back for 10 minutes...
 
2013-01-22 10:15:53 PM  
Which is why it's always best to shoplift from those stores instead of using that CC!
 
2013-01-22 10:16:02 PM  

Tom_Slick: Just like my stupid power company, pay online $2.00 fee, take $98.00 in ones and change to the drive through, no additional fee.


I'm pretty sure utility companies are obligated to provide a way for people without other means of payment to pay cash in person. Having somebody collecting cash all day is expensive.

All utility companies I've ever had allow online bill payment (paper check or ACH) for free. The only time they charge a fee is for payment via Visa/MC/Amex, because they incur fees themselves and want to discourage that.
 
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