passing 3% credit card fees onto the customer?

[DirectDrive]

What's annoying is sellers who won't even let you estimate shipping until AFTER you've put in all your personal info and are only payment info away from completing the order.

This ^^^
Then when you back out due to high shipping, they can and will nag you to come back since they have harvested your contact info.
The good sellers have an up front shipping calculator.

 

[Diamondback]

Conversely, clients who go out of their way to be nuisances I go the other direction, making my annoyance felt in the wallet by applying every fee and surcharge I can.

The "Accrued Physical Depreciation surcharge" aka the "because a**holes like YOU are gonna give me a heart attack before 50 fee" is always a hit...

 

[Alexx1401]

What's annoying is sellers who won't even let you estimate shipping until AFTER you've put in all your personal info and are only payment info away from completing the order.

Sorry, this is gonna sound peevish... I provide my clients with complete transparency on the expenses I incur on their behalf and my rate structure (pretty much unless you go out of your way to piss me off I'm gonna look for every opportunity to cut you a break while making fair return), and while not to the same extent I expect those who seek my money to at least take a few steps in the same direction rather than bushwhack me with surprises.

THAT!! Ammo shopping long ago when I first started buying on line I would run into this often. Place throw out a price that "sounded good" but, they would not flatly tell you what shipping was until as you said you had all the info in. It got to where if I saw that I just skipped the site and moved on.
I have a couple guns I bought off one of the bigger auction sites because they were impossible to get locally when "new". If the FFL did not make it clear up front what costs were, CC, Shipping, all of it, I just moved on to the next one. Couple of them would just ask for a Zip. Type in your zip and up comes the price. Not enter my name, address, payment, then hit me with the rest of the bill crap.

 

[dangerranger60]

I noticed more and more sellers now expect the " customer" to pay for transaction fees of 3% for credit cards or debit. I always thought that was the cost of doing business? When I had a small business, I had to file every quarter and pay tax and fees. I didn't try to pass transaction fees onto the customer. Is this the new norm now on places like Gunbroker? Even FFL's are doing this.

For me it comes down to , Do I raise the price for everyone to cover my CC costs? Or do I pass the direct cost on to only those that use the CC? I'm one who uses cash, and appreciates the discount for paying that way!
There are some places I use a CC, I sometimes use it for the fraud protection the cards provide, Sometimes I use a card for large business purchases that I will have sold and delivered the material before the CC bill comes. that lets me keep my cash in the bank. But there are costs involved in doing business that way, And those costs get passed to the customer, Otherwise every customer pays in higher overhead cost!
I actually shop for venders that give cash discounts! DR

 

[DirectDrive]

For me it comes down to , Do I raise the price for everyone to cover my CC costs?

Yes !
But offer the Cash Discount !

We have 6 pages of blabbering about this.
That's how it should be done.
No feelings are hurt.
Cash buyers get their discount.

Everyone is huggin' and kissin'
Then they walk away happy.

Doh !

ETA:
Some sellers don't want to do this because they want to show the lower cash price to attract buyers.
Flawed thinking.
Show the +3% price.....period.

But the credit card company wants me to treat their services as cash.
Are they spying on you ?
Forget that. Just do the correct thing as outlined above.

/thread

 

[2A Patriot LLC]

Yes !
But offer the Cash Discount !

We have 6 pages of blabbering about this.
That's how it should be done.
No feelings are hurt.
Cash buyers get their discount.

Everyone is huggin' and kissin'
Then they walk away happy.

Doh !

At least on Gunbroker, it's obvious when a listing charges more for CC use. A lot of listers say something like "price reflects a 3% cash discount". A lot of consumers are fairly brain dead, but I think most of them figure it out.

 

[Alexx1401]

Yes !
But offer the Cash Discount !

We have 6 pages of blabbering about this.
That's how it should be done.
No feelings are hurt.
Cash buyers get their discount.

Everyone is huggin' and kissin'
Then they walk away happy.

Doh !

ETA:
Some sellers don't want to do this because they want to show the lower cash price to attract buyers.
Flawed thinking.
Show the +3% price.....period.

But the credit card company wants me to treat their services as cash.
Are they spying on you ?
Forget that. Just do the appropriate thing bubblegum outlined above.

/thread

The only reason this is a "thing" is people who want to use plastic cry and scream to law makers that its "not fair". Enough of them do this and soon law makers start trying to "fix it" and make it "fair". This is why some were under the impression it was not legal to do this and looks like a few states its not. This is what happens when people cry to law makers to "fix" something. Normally what they do is make a mess. I am sure some of the bigger banks lobbied for this since they of course want the people to use their cards but, it still starts with people who whine and cry to lawmakers to fix something they do not like.
Remember when ATM's first became big? Soon banks told customers if you use one of ours its free. Want to use others we charge. The screaming and crying got lawmakers attention again. Everyone feels ALL ATM's should be "free". Of course someone had to pay to keep them up, stock them, and such. So someone has to pay but, the consumer wants it to be "free".

 

[DirectDrive]

The only reason this is a "thing" is people who want to use plastic cry and scream to law makers that its "not fair".

I would not want these people for customers.
No telling what they're going to pull after the purchase.

 

[zcap]

I applaud businesses that allow me the option of not paying for a CC service I may not want to use. The problem is, many people get upset with such businesses because they think they are being charged for using a CC, when in fact most businesses charge the 3% fee even if you pay with cash. No, you may think, some businesses just eat the 3% fee. Not true, most businesses incorporate CC fees into the cost of the goods of sold, and those that claim they don't have significantly less net income to reinvest and optimize their business (eg buy inventory with cash rather than credit) and thereby indirectly keep costs higher for the consumer.

In other words, most people prefer hidden fees and do not like businesses that explicitly charge a fee for a service.

Question: Am I paying more to use a credit card than cash?
Answer 1: No... THIS IS WHAT MOST PEOPLE WANT TO HEAR.
Answer 2: No..., we are charging you the 3% fee via higher prices even if you pay in cash.

Or, analogously.:

Question: Do these jeans make me look fat?
Answer 1: No... THIS IS WHAT MOST PEOPLE WANT TO HEAR.
Answer 2: No..., your fat makes you look fat.

 

[Alexx1401]

I would not want these people for customers.
No telling what they're going to pull after the purchase.

In all seriousness that is the one downside to plastic. I use only it for on line due to the protection. The protection is so good there is little doubt in my mind that some abuse it. Like all "theft" this is of course just passed on to all of us sadly. I have for as long as the net has been around heard many say they love to send Postal M/O's for stuff due to the discount. I have never been brave enough to try it for the little extra savings but, I can sure see why sellers like it.

 

[GWS]

My favorite shop in San Jose is Castello's. He's been in the business for 50 years and has a wealth of knowledge. He got tired of dealing with credit card companies so he just won't take plastic anymore, Cash or check only. He had/has one of the best selections of knives on west coast. I used to just hang out there and shoot the bull.
Once I got to be friends with him whenever I bought a new knife or gun from him and he always charged me less than the sticker price. I asked him why he even put stickers on the knives if he was selling them for less than that. His reply was classic Joe. "Those prices are for pricks! If I don't like them they can pay that price."

 

[USAF Medic]

I noticed more and more sellers now expect the " customer" to pay for transaction fees of 3% for credit cards or debit. I always thought that was the cost of doing business? When I had a small business, I had to file every quarter and pay tax and fees. I didn't try to pass transaction fees onto the customer. Is this the new norm now on places like Gunbroker? Even FFL's are doing this.

It used to be illegal to charge the credit card fee. Don't know when that changed?

 

[USAF Medic]

Nothing is free…

My company charges the 3% transaction fee for CC payments….. eat 3% on 5-8 figure totals? Yeah…. No.


Don't like it, pay cash, write a check, or do a direct electronic deposit transfer.

Most times that a credit card is used, it's just a way of financing the purchase,

 

[Alexx1401]

It used to be illegal to charge the credit card fee. Don't know when that changed?

Look further back in this thread its been explained kind of.

 

[DirectDrive]

Most times that a credit card is used, it's just a way of financing the purchase,

Until it's paid off at the end of the month.

 

[Alexx1401]

Most times that a credit card is used, it's just a way of financing the purchase,

A few, probably very few of us take full advantage of the perks and pay off but, this is probably very few. The rates charged by the cards are why the banks really love them.

 

[DirectDrive]

You have to pay in full at the end of the month to be in the game with the Cash Back cards.
I have the Citi Double Cash card (2% on everything).
In one year I have racked up $1100.

So one free gun per year.

 

[Alexx1401]

You have to pay in full at the end of the month to be in the game with the Cash Back cards.
I have the Citi Double Cash card (2% on everything).
In one year I have racked up $1100.

So one free gun per year.

Yep a year or so ago I got one from Amazon (Chase) that gives 5% on all I buy from them, 2% for the rest. Try to use others first now but still end up buying a lot from Amazon. Look forward to buying ammo with it just to tweak them

 

[sobo]

A few, probably very few of us take full advantage of the perks and pay off but, this is probably very few. The rates charged by the cards are why the banks really love them.

Back in the fall of 2016, I actually had two different card issuers call me to tell me that they were cancelling my cards.
After some deliberation over the phone with both of these outfits (Bank of America in September and CHASE in October), it was determined that they were cancelling my cards because I either paid off my account in full every month (CHASE), or I had not used the card for anything in over 13 months (BoA).
I informed them that they were essentially punishing me for being responsible with the credit they had extended ($26k for CHASE and $23k for BoA).
I got the CHASE person to admit that "We feel that our credit can be better utilized if we extend it to some other individual rather than you, since you don't use it", to which I responded, "Oh, I get it. I know how you make your money. You want to take credit from someone responsible and give it to some other sucker so he can get so deep in debt that you profit off his misery every month from interest payments, while I give you nothing because I pay my balance off in full every month."

Long silence...

"Tell ya what, since you're gonna cancel my card anyway, how about this? I am closing my account today, right now. And I want the notation to show that the account was closed by the consumer. I want that to show up on my credit report. That I cancelled it, not you! And I will be checking my credit reports; all three of them, so don't blow it."

 

[Alexx1401]

Back in the fall of 2016, I actually had two different card issuers call me to tell me that they were cancelling my cards.
After some deliberation over the phone with both of these outfits (CHASE and Bank of America), it was determined that they were cancelling my cards because I either paid off my account in full every month (CHASE), or I had not used the card for any purchases in over 13 months (BoA).
I informed them that they were essentially punishing me for being responsible with the credit they had extended ($26k for CHASE and $23k for BoA).
I got the CHASE person to admit that "We feel that our credit can be better utilized if we extend it to some other individual rather than you, since you don't use it", to which I responded, "Oh, I get it. I know how you make your money. You want to take credit from someone responsible and give it to some other sucker so he can get so deep in debt that you profit off his misery every month from interest payments, while I give you nothing because I pay my balance off in full every month."

Long silence...

"Tell ya what, since you're gonna cancel my card anyway, how about this? I am closing my account today, right now. And I want the notation to show that the account was closed by the consumer. I want that to show up on my credit report. That I cancelled it, not you! And I will be checking my credit reports; all three of them, so don't blow it."

I have heard of cards canceled for none use. Since my Chase card is tied to Amazon I doubt they will want to end it but, if they do? Fine with me. I have no doubt someone will want my business. Last vehicle we bought we financed through a CU I had never heard of. Now they send me invites to take one of their cards ever month or so.