Credit Card Surchage - Are you changing your method of payment?

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Forums › Finance and wealth management › Credit Card Surchage - Are you changing your method of payment?

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#3290588 3-Oct-2024 16:52

I'm the opposite. I don't care that there is a fee. I just hate seeing it. Just lift your prices across the board by the percentage and put it into the price.

I had this debate on Facebook recently where a merchant was requesting people don't use paywave because of the cost. I don't care, if you don't give me the option of paying how I want, I might not just purchase the thing in the first place.

A friend of mine had an online store but it was never clear until the checkout process that you had to pay by a bank transfer. I was imploring him to set up payment with credit card. So many would cancel the transaction when they realised they couldn't use their card.

Their sales shot through the roof almost overnight when they changed.

What I think will be interesting is if in the future businesses start charging a handling fee for paying in cash.

richms

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#3290592 3-Oct-2024 17:05

There are restrictions on cash because the the AML laws that make it very hard to deal with, so its not uncommon to have places refuse it or else have additional compliance costs to deal with it.

Funnily enough, seems that appliance shops have no way to stop people going past the 10k limit on cast when I last looked at it.

Richard rich.ms

k1w1k1d

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#3292625 3-Oct-2024 20:22

I don't worry about the surcharge. Can't be bothered going to ATM to get cash just to save the surcharge fee.

Mehrts

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#3292655 3-Oct-2024 21:31

k1w1k1d:

I don't worry about the surcharge. Can't be bothered going to ATM to get cash just to save the surcharge fee.

Some credit cards allow flexibility as you can choose either credit or cheque on the one card, so no need to worry about faffing around with ATMs.

martyyn

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#3292684 4-Oct-2024 07:36

The only decision I make is whether I use my personal CC or my business CC.

I couldn't care less about a fee.

It's either a % on the transaction or it's included in the price. I'm not sensitive enough to worry about a couple of dollars on a large purchase.

eracode

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#3292737 4-Oct-2024 08:07

I also really hate those fees. I recently got unexpectedly presented with a 2% PayWave/CC fee when paying a $1,400 dentist bill at checkout. The previous time I was there, they weren't charging it. Pee'd me off because on the day I didn't have that sort of money in my cheque account to enable me to pay by EFTPOS. I really had no alternative but to suck it up. I was aggrieved on several levels. I wouldn't mind if they increased their prices by 2% - but I find it a slap in the face to make it a separate item on the bill.

Although that dental practice is a really great outfit, I made a point of giving them a down-graded review on Google Maps and commented on the new fee.

Sometimes I just sit and think. Other times I just sit.

martyyn

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#3292745 4-Oct-2024 08:39

If I understand you correctly your issue is not with the fee but that they didn't tell you it would be added to the price.

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mrdrifter

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#3292755 4-Oct-2024 09:15

The one that annoys me, is when the fee is charged but not actually put on the receipt. Making reimbursable purchases for work, and not being able to show on the receipt the full cost including the fee and then having to upload screenshots from the bank to show the actual total - just annoying!

Senecio

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#3292765 4-Oct-2024 09:25

I will never revert to cash, I have a $20 note in my wallet that has been there since ~2019. But I’d do pause sometimes when I see the surcharge and select my cheque account instead of credit when it’s 2% or above on a decent sized purchase.

nztim

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#3292774 4-Oct-2024 10:00

I only use cash at my local fruit and vegetable market on the weekends

in saying that though there are no guidelines in NZ around a merchant being cashless meaning a business can be cashless and still charge a processing fee

IMO if a business decides that it is going to be cashless the following should conditions come into play

No CC Processing fees
Accept ALL forms of CC (AMMEX, VISA, Mastercard, Discover)
For international Visitors the Merchant should offer DCC at a wholesale rate (e.g Card is charged customers home currency at a wholesale rate and Merchant picks up the tab for interchange fees)

In otherwards if you are going to be cashless you should not be passing on any additional cost onto the customer.

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Dynamic

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#3292826 4-Oct-2024 10:19

mattwnz:

I am surprised that supermarkets I go to don't charge it. That would suggest their margins are pretty healthy to absorb that cost.

I've heard that supermarkets were not initially accepting credit cards and later paywave, and they were able to negotiate very low fees with the relevant companies due to their volume. I've never tried to verify the accuracy of this.

alisam:

Quite frankly, paying a percentage for anything irritates me e.g Credit Card, Real Estate Agent Fees, Bank Service Margin etc.

We have recently started allowing clients to pay for computer hardware with credit cards. We've made the decision to share the cost of the surcharge with our clients, which reduces our margins but this is partially offset by the benefit of being paid faster. Linked below is what we get charged. So far 1/3rd of our credit card sales have been with international cards (though the sample size is small).

Pricing & Fees | Stripe Official Site

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richms

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#3292828 4-Oct-2024 10:27

mrdrifter:

The one that annoys me, is when the fee is charged but not actually put on the receipt. Making reimbursable purchases for work, and not being able to show on the receipt the full cost including the fee and then having to upload screenshots from the bank to show the actual total - just annoying!

I am yet to have a terminal that doesn't put it on the transaction printout, that should be enough to allow for reimbursement.

Richard rich.ms

richms

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#3292843 4-Oct-2024 10:30

nztim:

I only use cash at my local fruit and vegetable market on the weekends

in saying that though there are no guidelines in NZ around a merchant being cashless meaning a business can be cashless and still charge a processing fee

IMO if a business decides that it is going to be cashless the following should conditions come into play

No CC Processing fees
Accept ALL forms of CC (AMMEX, VISA, Mastercard, Discover)
For international Visitors the Merchant should offer DCC at a wholesale rate (e.g Card is charged customers home currency at a wholesale rate and Merchant picks up the tab for interchange fees)
In otherwards if you are going to be cashless you should not be passing on any additional cost onto the customer.

I would just say that offering eftpos is enough to be cashless and still put a surcharge on card transactions.

No obligation to take all card types, and I would put union pay ahead of discover or amex for being needed for travelers. International visitors are here and need to deal with not being at home at their cost, not a merchants.

Richard rich.ms

Handsomedan

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#3292857 4-Oct-2024 11:22

Surcharging is a rort as far as I am concerned.

There are charges for every aspect of running a business, including taking cash payments and bank transfers.

If you are EFTPOS-only, you'll have terminal rental and network fees to pay - are they surcharged?

A list of the things that cost a business to provide their services and do not attaract a separate surcharge:

Power
Wages
ACC
Rent
Stock
GST (unless there's a b2b transaction)
All other taxes
Fit-out
Cleaning
Maintenance
etc
Advertising/marketing

Personally, I think if you're in business and you can't afford the additional small cost of accepting a payment method that invariably brings more sales in, you need to rethink your business strategies, pricing and margins.

The average cost of accepting a credit card is small. Accepting a contactless debit payment is even less. If you're on an interchange+ pricing model (which in this day and age you should be), then you will know exactly how much your transactions are costing you from your statements and you should be able to see it's really not that much, compared to other business costs - to separate that out and charge your customers is frankly criminal.

I walk away when there's a surcharge - if there's no other option, but to pay by card and there's still a surcharge and it's the only provider of said services, I make a complaint to the ComCom.

Wherever possible, I take my business anywhere else, rather than pay a surcharge.

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eracode

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#3292861 4-Oct-2024 11:49

martyyn: If I understand you correctly your issue is not with the fee but that they didn't tell you it would be added to the price.

Yeah, maybe. Perhaps unreasonably, I was just annoyed. It wasn't only the money, it was also the principle. Principal and principle. I thought it was grasping and tacky and I expected more class from them - not what I expect from a literally professional business. Also the fact that they have only recently started charging it. Left a bad taste in my mouth - and it wasn't the local anesthetic.

Totally agree with @Handsomedan above.

Sometimes I just sit and think. Other times I just sit.

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