What's up with this "we charge you an extra 3% if you use a credit card" bit?

[AudiDudi]

Cash = "tax free" Check has to be cashed and leaves a trail.

 

[athena53]

We had a house painter quote 3 prices: credit card with added 3%, payment by check, and a discount for actual cash. We will pay by check—if we use him.

I'd do that, too; as Accidental Retiree noted, cash can mean evading taxes, worker's comp premiums, liability insurance...all kinds of nasty things. WC premiums, for example, are a function of payroll. Lower documented payroll, lower premiums (and probably unprotected workers). I'm guessing liability coverage is based on revenues so that would be understated, too. I don't want to be a part of any of that.

 

[Jerry1]

I really doubt CC fees are over 4% , some years ago, they ranged based on number and size of the purchases. The range I read then was ~2% -> 3.5%

I discussed this with the manager at a restaurant we visit. For him, the fee charged was all inclusive for handling his entire system from cash register (credit cards) to his automated order processing into the kitchen. I think he said it was 7%. He doesn’t charge extra for credit cards but said he was considering it.

 

[foxcreek9]

I discussed this with the manager at a restaurant we visit. For him, the fee charged was all inclusive for handling his entire system from cash register (credit cards) to his automated order processing into the kitchen. I think he said it was 7%. He doesn’t charge extra for credit cards but said he was considering it.

along with "automated order processing into the kitchen", if he adds electricity then his cc fees are 20% /sarcasm

Even if he didn't take cc's he would still (probably) be paying for the order processing system, an unrelated fee that I'm sure some companies roll together with cc fees for the benefit of the business.

Here is Squares' fees for cc processing

 

[Jerry1]

along with "automated order processing into the kitchen", if he adds electricity then his cc fees are 20% /sarcasm

Even if he didn't take cc's he would still (probably) be paying for the order processing system, an unrelated fee that I'm sure some companies roll together with cc fees for the benefit of the business.

Right. He sees it as one system because the vendor has packaged it that way. In the end, credit card fees are just a way to get more revenue and I don’t understand why they don’t just increase all prices. This nickel and dimeing with add on fees is irritating.

 

[Zathras]

I really doubt CC fees are over 4% , some years ago, they ranged based on number and size of the purchases. The range I read then was ~2% -> 3.5%

3.5% is pretty close to 4%.
This is one area where small businesses are at a disadvantage.
There rates can easily hit 4% (we started an online store and wow!).
As you said though, the typical rates are 1.5%-3.5%.

 

[Texas Proud]

I absolutely agree the charge should be listed on the menu.
As I recall, many restaurants list discounts and surcharges at the bottom of the menu (or section if it just applies to a specific section).

I have never eaten at a restaurant where I got a surprise charge when paying. If I did, I wouldn’t be back.

I have.... both being the 3% charge... the first was at House of Pies and I ordered at the counter a couple of pieces of pie... was surprised when I saw 'convenience fee'.... I said how is this a convenience for me? I paid cash and have never been back...

Forget the 2nd place... kinda mad at myself.. it was not a regular place so might never go there again anyhow... but told waiter that it was coming out of their tip and to pass that along to management... I know it is not their decision but they have more say than we do IMO..

 

[Walt34]

I really don’t get all the angst. Do you guys think the cash back incentives are free?

No, of course I don't think the incentives are free. But they are a normal cost of doing business, just like utilities, trash collection and the the like. I'm not paying a cc fee (more than once) and I don't expect to pay an extra fee for any of those other normal and routine costs of running a business. I don't see any difference in being charged a fee for using a cc and being charged for the illumination over my seat in a restaurant. And another irritation is that oh, how soon the folks complaining about cc fees forget that the average person spends about 20% more when using a cc than when paying cash.

I think they should be careful what they wish for. They might get it.

 

[Accidental Retiree]

What we also saw at a local restaurant was an extra mandatory charge of 12%, listed on the menu, for kitchen help and stuff like that. We were also expected to tip the server.

No, we don’t eat there any longer.

 

[Chuckanut]

And another irritation is that oh, how soon the folks complaining about cc fees forget that the average person spends about 20% more when using a cc than when paying cash.

Cash is expensive for a retailer to deal with. It is subject to theft. It needs to be counted and often recounted and verified at the end of the business day. Cashiers make mistakes. Some businesses don't take it anymore due the hassles. So, there is a cost to taking cash.

 

[AudiDudi]

I'd love for a business to refuse my cash as it says "this is legal tender for all debts public and private." Refuse to accept my payment and I would consider the debt canceled. See ya.

 

[JoeWras]

Looking at the latest inflation report, "Food away from home" continues to rise above the general rate. I wouldn't be surprised if the spread of this practice is part of the continued pressure.

 

[Music Lover]

A tip to retailers. A discount is much better received by your customers than a surcharge.

So all they have to do is raise prices slightly to cover the cost of credit cards and then give a cash discount and no one will complain about a credit card fee...

 

[sengsational]

What we also saw at a local restaurant was an extra mandatory charge of 12%, listed on the menu, for kitchen help and stuff like that. We were also expected to tip the server.

No, we don’t eat there any longer.

I would LOVE it if every restaurant put a mandatory 12% adder, as long as they declared it on the menu. I'd sign their computed total and leave. That's what I want: a defined price and get me out of the employee evaluation game all together.

 

[Mr._Graybeard]

I would LOVE it if every restaurant put a mandatory 12% adder, as long as they declared it on the menu. I'd sign their computed total and leave. That's what I want: a defined price and get me out of the employee evaluation game all together.

We have a local Japanese restaurant that makes a killer ramen. The takeout prices through Doordash are about 15% higher than menu prices in the restaurant. I pick up and walk out the door after paying online. That works for me.

 

[explanade]

We have a local Japanese restaurant that makes a killer ramen. The takeout prices through Doordash are about 15% higher than menu prices in the restaurant. I pick up and walk out the door after paying online. That works for me.

That may not be the restaurant imposing higher prices for Door Dash.

Some restaurants have the same prices on DD as if you ordered by telephone. But most of the ones around here have higher menu prices if you order through DD even if you go an pick up the order.

So when DD offers ‘free” delivery promos, they charge higher menu prices.

In some cases it may be worth paying a bit more to order through DD for pickup orders for the convenience, as you don’t have to call the restaurant or use their own online ordering system which requires entering your card number whereas on DD they already have your card number.