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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#3292976 4-Oct-2024 14:16

rugrat:

PayWave is no longer contactless where have to press button to accept fee.

That's apparently configurable: the cafe over the road has contactless Paywave with a surcharge. There's a sign on the machine, but no confirmation step.

I use Eftpos there though. I'm there 3-5 times a week so the fees would add up to maybe $20-30 over the course of a year.

K8Toledo

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#3292983 4-Oct-2024 14:43

Behodar:

rugrat:

PayWave is no longer contactless where have to press button to accept fee.

That's apparently configurable: the cafe over the road has contactless Paywave with a surcharge. There's a sign on the machine, but no confirmation step.

It generally is.

I had this discussion recently with my local dairy owner, I said I don't care about the surcharge, however I do not want to hit accept every time I use pay wave, it negates the whole point of pay wave.

Just put a 2.5% or whatever surcharge sticker on the pad like many merchants do with CC transactions passed to customer and I'll configure it now. It would've taken 5mins no charge.

He wasn't interested

richms

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#3292990 4-Oct-2024 15:14

Behodar:

That's apparently configurable: the cafe over the road has contactless Paywave with a surcharge. There's a sign on the machine, but no confirmation step.

We have that on so that people cant say they didnt see the sign, or the amount on the screen and to give those people an option to decline it and then insert their card and not pay it.

You also have machines that are e-begging when you paywave as well.

Richard rich.ms

mudguard

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#3293039 4-Oct-2024 16:19

Wombat1:

Easy solution - Don't use credit cards!!!

Got rid of mine years ago and have not needed one since.

My work has a slightly unusual arrangement in that I get paid a vehicle salary and a KM reimbursement rather than having a company car.

I spent $6545 on petrol last year. I'd rather not have that coming out of cheque account.

That's where a credit card is perfect.

alexx

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#3293189 5-Oct-2024 15:08

k1w1k1d:

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

The banks are pulling out the ATM machines in many places.

But the best way to discourage the fees might be to pull out a large bundle of cash. A business can refuse to accept cash if they have warned you, for example a business that has a sign that states they don't accept cash. But from my understanding, they can't refuse cash if the service has already been provided and you are paying the bill.

#include <standard.disclaimer>

alisam

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#3293245 5-Oct-2024 18:56

I have never worked in Retail, hence my question.

Do banks charge a business for counting and depositing cash?

Naturally, I understand it takes time for an employee to count the cash, probably fill out a deposit slip and walk/drive to the bank.

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richms

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#3293317 5-Oct-2024 21:52

alisam:

I have never worked in Retail, hence my question.

Do banks charge a business for counting and depositing cash?

Naturally, I understand it takes time for an employee to count the cash, probably fill out a deposit slip and walk/drive to the bank.

Yes, that is why they are generally only too happy to give cash out with eftpos transactions as thats reducing their cash holding and handling costs.

You also generally have to buy insurance for how much cash you have on the premisis

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#3293387 6-Oct-2024 01:44

alisam:

Do banks charge a business for counting and depositing cash?

Here is a snip from ANZ’s Business Accounts Fees webpage. I’m sure all the banks will be very much the same.

“ANZ Business transaction accounts

Unless otherwise advised to you, the following fees apply to the ANZ Business Current Account and ANZ Business Premium Current Account:

Monthly account fee: $8.50
Transaction fee: 200 free transactions a month. $0.20 for each additional automated or manual transaction.
Service fees:
- Cash handling fee*
  - Deposits less than $3,000 per business processing day – waived.
  - Deposits of $3,000 and over per business processing day – 0.25% of total cash deposited.

*To be charged per account, on the total cash amount deposited in any one business day.”

The days of a bank teller physically counting large volumes of coins are long gone. Banks have counting machines in branches where customers enter the account number, dump the coins into a bin - and it’s automated.

I think tellers still handle notes - IIRC done by weighing stacks of notes after sorting into denominations. Maybe automated for large volumes, like the coins? - someone here will know.

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Handsomedan

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#3293775 7-Oct-2024 10:37

alisam:

I have never worked in Retail, hence my question.

Do banks charge a business for counting and depositing cash?

Naturally, I understand it takes time for an employee to count the cash, probably fill out a deposit slip and walk/drive to the bank.

Yes - there's a charge for nearly everything in Business/Commercial and Corporate Banking.
Even standard deposits and withrdrawals have a fee attached - just depends on volumes and values as to what those could be - hence the reason I laugh when cards are singled out and retailers say they'd rather have bank transfers or cash.

Source - have been in Institutional/Corporate banking and payments for the last 30+ years

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#3293902 7-Oct-2024 13:00

The interesting thing over in Oz is that some places will offer considerable discounts if you pay in cash.

eg. a number of food places will charge anywhere from 0.75-2% surcharges but will often offer 5-10% discount if you pay in cash. I've nicknamed the 10% discounts as the 'ATO special' (think IRD but for Australia) as it lines up with the GST rate over here.

Effectively though, it makes card acceptance at some of those places around 7-12% which is rather unsettling.

Personally for transactions under $100AUD, HSBC offers 2% instant cashback on their debit card (paywave only) so I use that a lot (capped at $50 a month) and anything overseas or north of $100, the credit card comes out.

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#3293965 7-Oct-2024 13:55

As a custom apparel business we do offer credit card payments on our invoices, and the gateway passes on the related surcharges - However we make that very clear and absolutely offer bank deposits.

As far as paywave goes, it doesn't stress me out in the least provided you know it is getting applied - The push to confirm phase was awful imo

wellygary

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#3293974 7-Oct-2024 14:21

cokemaster:

I've nicknamed the 10% discounts as the 'ATO special' (think IRD but for Australia) as it lines up with the GST rate over here.

Irrespective of the GST rates, in very small retail unless its registered in the POS system, there is a chance that it went straight into the retailers pocket (aka un-taxed bottom line) ..

firefuze

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#3294913 8-Oct-2024 22:11

richms:
We will post you a new card in the mail because that is the only way we know how to get you the card number and CVV that you need to be able to use the new card. No we cant give it to you over the phone for "security" so you cant spend your money online till you go and get the mail with the new piece of plastic in it.

Hell no. Not safe at all.

Apple and paypal are out of action after reporting the card stolen till you get the new one to load again, because again, braindead security from NZ banks who will not let you get the CVV any other way. No virtual card numbers to use online that can be disconnected once used. It’s all just total crap and opening the door for the fintech companies to stomp all over them with better options, or just use a wise or revolut card for things.

This is not my experience with ANZ just last week.

Got a SMS from ANZ that a transaction had been blocked, asking me to confirm if this was me. Was for $CAD, I reply ‘No’. I immediately get a reply that my Visa card is permanently deactivated. A minute later, a notification to say Apple Pay has been deactivated for my ANZ Visa.

About an hour later I get a notification Apple Pay is ready to use again. I check, and the last 4 digits of my card shown in Apple Pay has changed. Check the ANZ goMoney app, manage cards > show card details, and there is my full new card number, expiry, card holder name and dynamic CVV that can be used immediately. Fantastic, my physical card is in the post but I’m up and running again with new card details without lifting a finger or talking to anyone.

ANglEAUT

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#3294922 8-Oct-2024 23:11

firefuze: This is not my experience with ANZ just last week. ... Fantastic, my physical card is in the post but I’m up and running again with new card details without lifting a finger or talking to anyone.

Wow. Very nice.

Please keep this GZ community vibrant by contributing in a constructive & respectful manner.

Jvipers2

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#3295051 9-Oct-2024 15:38

cokemaster:
The interesting thing over in Oz is that some places will offer considerable discounts if you pay in cash.

eg. a number of food places will charge anywhere from 0.75-2% surcharges but will often offer 5-10% discount if you pay in cash. I've nicknamed the 10% discounts as the 'ATO special' (think IRD but for Australia) as it lines up with the GST rate over here.

Effectively though, it makes card acceptance at some of those places around 7-12% which is rather unsettling.

Personally for transactions under $100AUD, HSBC offers 2% instant cashback on their debit card (paywave only) so I use that a lot (capped at $50 a month) and anything overseas or north of $100, the credit card comes out.

If we all revert back to cash and suddenly the govt notices less and less income from tax, then soon contactless/CC transactions would be without surcharge...

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