Restaurant adding fee for use of credit card

[Texas Proud]

It is interesting that I was thinking about this earlier today and thought that it is probably larger chains etc. that is doing this... and some make a LOT of money... but if it is a local and the cost is low I pay in cash and have for awhile... like the previous poster I pay cash for my haircuts (which I did today which is why I was thinking about this thread)...

 

[EvanC]

This is such a distressing conversation for me. I have literally not carried more than a few dollars worth of cash for 50 years. I charge everything and pay my credit card off each month.
The thought of having to change the way that I live my financial life is distressing. I am frugal that 3% is quite a big number over the year.

What to do what to do

I’m gonna have to create a thread to get some opinions as to how everyone else handles their life.

If you’re responsible with credit cards, they are so easy.

 

[Music Lover]

The minimum wage for tipped employees in my state is $11.35. Not so bad for carrying a plate IMO. I pay with cash when I do eat out as I am not handing over my credit card where they take it out of sight to run as many places still do.

It boggles my mind that this is still done is the US. It's even more mind boggling that so many people seem to accept it as normal. This hasn't happened to me (Canada) for at least 15 years, probably longer.

 

[Teacher Terry]

My hairdresser charges a fee if you use a card to pay so now I carry cash.

 

[ElizabethT]

So far I'm not seeing the 3% cc fee at restaurants, but it is certainly prevalent with almost every vendor I"m encountering that orders out for their materials once I place my order (flooring, windows, doors, etc.). So it's been back to writing checks. Which begs the Q. - do restaurants still accept checks? That's an easy way around the 3% cc fee it would seem.

I will say for sure, however, that the hidden fees we've encountered at some restaurants are wearing us out and causing us to pull back from full service dining. I loathe hidden fees and once we encounter them, the restaurant attempting to serve them up becomes an instant 'No Go' for us. We just bumped into this again last week, when a 3% Dining Room Fee was tacked onto our bill, with the wait person going out of their way to explain that the 3% fee went to the owner, not to them the server. Tacky, tacky, tacky, and a lousy way to end a meal IMO.

So I for one am thrilled that these fees will be illegal in my state, California, beginning July 1.

 

[Texas Proud]

Responding to the last post... almost all of the fees goes to the owner... now the owner might say they are paying for this or that for the employees but they do not have to do so...

I think they are saying that so you do not take it out of their tip.... but, if they would actually leave and go someplace else to work that would also send a signal to the owner...

 

[GenXguy]

I will say for sure, however, that the hidden fees we've encountered at some restaurants are wearing us out and causing us to pull back from full service dining. I loathe hidden fees and once we encounter them, the restaurant attempting to serve them up becomes an instant 'No Go' for us. We just bumped into this again last week, when a 3% Dining Room Fee was tacked onto our bill, with the wait person going out of there way to explain that the 3% fee went to the owner, not to them the server. Tacky, tacky, tacky, and a lousy way to end a meal IMO.

So I for one am thrilled that these fees will be illegal in my state, California, beginning July 1.

I haven't run into it nor heard of it from others in the area I live. Are these fees being disclosed anywhere on the menu or visible signage? Even in small print somewhere? Or totally hidden?

 

[ElizabethT]

Responding to the last post... almost all of the fees goes to the owner... now the owner might say they are paying for this or that for the employees but they do not have to do so...

I think they are saying that so you do not take it out of their tip.... but, if they would actually leave and go someplace else to work that would also send a signal to the owner...

Texas Proud, I know why the server called it out, but it was awkward, as in please add an additional 20% to the 3% we just took from you without asking, so I your server don't get caught in the awkward cross fire of it all.

I haven't run into it nor heard of it from others in the area I live. Are these fees being disclosed anywhere on the menu or visible signage? Even in small print somewhere? Or totally hidden?

Totally hidden. No disclosures anywhere, just gets added to the final bill. This is not the first time, but nicely as of July 1 it will be the last here in California.

This time around I took the time to send an email to the restaurant owner advising that we would not be back, and why. I asked him how he would like it if he had 3% added without explanation to the next purchase he made somewhere.

Technically and legally, customers can ask for any hidden fee to be removed, but you want to talk about awkward and a real mood killer? Yeah.

 

[ncbill]

My current favorite Mexican place has done away with prices on the menu altogether.

Guess that saves the cost of re-printing them.

There's a QR code you can scan to see the price list of menu items.

No 3% up-charge, though.

 

[GenXguy]

Speaking of new fees & costs to customers at restaurants, I heard McDonald's is moving away from self serve drinks and will be charging for refills in some locations. Apparently, that depends on the franchisee, and some locations already do it. Ironic, right after hearing that they acknowledge their pricing is too high. Anyway, I haven't eaten in a McDonald's for years, so it won't affect me.

 

[nobody]

If I run into to, I consider it part of the tip and just tip lower. Places were they add junk fees for employee type things, again I remove from the tip or don't tip at all.

 

[aja8888]

Speaking of new fees & costs to customers at restaurants, I heard McDonald's is moving away from self serve drinks and will be charging for refills in some locations. Apparently, that depends on the franchisee, and some locations already do it. Ironic, right after hearing that they acknowledge their pricing is too high. Anyway, I haven't eaten in a McDonald's for years, so it won't affect me.

My friend who owned 6 Burger King locations (sold all last year) said drink sales are the highest profit margin item, even with free refills. Their highest cost item is bacon.

 

[frank05]

A local restaurant charges nothing if you use your debit card but 3% for credit. They are also one of the few US restaurants that I visit where bring the machine to the table, your card never leaves your hand.

 

[GenXguy]

If I run into to, I consider it part of the tip and just tip lower. Places were they add junk fees for employee type things, again I remove from the tip or don't tip at all.

The problem is those fees are not a payment to the server, so you're just stiffing the server. In a low minimum wage for tipped workers state, that would be especially bad. There were some earlier comments about that behavior.

 

[GenXguy]

My friend who owned 6 Burger King locations (sold all last year) said drink sales are the highest profit margin item, even with free refills. Their highest cost item is bacon.

That doesn't surprise me. Some restaurants around here charge $3 for a watered down pop, although they are free refills. I've switched pretty much exclusively to water. I seriously can't imagine getting wine/alcohol! I need to have some money left over to pay the tip after these inflated meals. XD

 

[Music Lover]

The problem is those fees are not a payment to the server, so you're just stiffing the server. In a low minimum wage for tipped workers state, that would be especially bad. There were some earlier comments about that behavior.

Do the math. The loss of 3% has been more than made up by the large increase in menu prices. In fact, the tipping "expectation" percentage alone has risen by far more than 3% in the last few years.

 

[jazz4cash]

Had a new experience today traveling away from my home area. Neighborhood bar charging 3.5% surcharge for “credit cards and bank cards” i.e. debit cards. I did not notice if this was posted on the menu. I happened to have more cash than normal so I paid cash. Waitress looked at the $100 bill I used and utttered Thank You! several times as if she thought it was a $75 tip. I couldn’t tell if she was joking but she was. I hate cash.

 

[GenXguy]

Do the math. The loss of 3% has been more than made up by the large increase in menu prices. In fact, the tipping "expectation" percentage alone has risen by far more than 3% in the last few years.

I agree with you on all that. Menu prices are way up, tipping expectations of 20% to 25% vs. 10% to 15% of years past. But if a restaurant adds on a hidden fee to increase their profits, I don't think the server is the one who should be stiffed, especially in a state that minimum wage for servers is about $2/hr. It's more than 4X that much in my state, of course, and I still wouldn't stiff them for something they don't control.

 

[momoney]

Some of my doctors have started adding in a credit card fee. But they don't tell you until you reach the checkout desk at the end of the appointment.

I recently had a doctor bill that offered me a % discount if I paid within x number of days.

 

[explanade]

It's fairly common in some overseas locations.

I still use cards, saves time going out and drawing money, pulling it out, dealing with change.

Plus my cards earn 3X dining points.

 

[GenXguy]

I just went out for a steak dinner in the sit-down cafeteria within a supermarket. There's no table service, except you leave your dishes behind. Anyway, $10 for a freshly grilled New York Strip with 3 sides, a dinner roll, and water. They fill your plate for you and ring it up before you sit. No credit card charges, no tips, no hidden fees. There's not even an option to enter a tip - you just slide in the credit card. Just $10 + tax. It's nice to find a nice deal once in a while these days.

Edited to add: A packaged uncooked NY Strip steak 8 oz. is $9.99 or 16 oz. $16.99 in the meat dept. of the same store. Also, the steak dinner is a special every Thursday for the $10 price.

 

[Cayman]

Hey GenX I'd try your steak place.
Tonight we ate out with friends who chose venue. We paid cash for a pretty lame meal with bad service.
Our bill had a 3% upcharge for credit card pay option AND suggested tip choices were 20%-25%-28%. Place was packed packed, local joint with pricey bar food.

 

[marko]

I just went out for a steak dinner in the sit-down cafeteria within a supermarket. There's no table service, except you leave your dishes behind. Anyway, $10 for a freshly grilled New York Strip with 3 sides, a dinner roll, and water. They fill your plate for you and ring it up before you sit. No credit card charges, no tips, no hidden fees. There's not even an option to enter a tip - you just slide in the credit card. Just $10 + tax. It's nice to find a nice deal once in a while these days.

I think this belongs on the BTD thread.

 

[GenXguy]

I think this belongs on the BTD thread.

Yeah, I like to splurge a little here and there.

 

[Montecfo]

I agree with you on all that. Menu prices are way up, tipping expectations of 20% to 25% vs. 10% to 15% of years past. But if a restaurant adds on a hidden fee to increase their profits, I don't think the server is the one who should be stiffed, especially in a state that minimum wage for servers is about $2/hr. It's more than 4X that much in my state, of course, and I still wouldn't stiff them for something they don't control.

The suggested tip on credit card slip is not an "expectation". It is a pipe dream in some cases. Just saw one where the suggestions were 22, 25 and 30%. That just seemed like free entertainment to me. After I laughed I tipped what was fair for the service. Which I recommend.