Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




321 posts

Ultimate Geek


Topic # 56535 15-Jan-2010 16:17
Send private message

Background on topic here

It mentions in the article that the surcharge can only be to cover costs and not to increase revenue.

Our local pizza shop, which enjoys a monopoly (as there is only one pizza shop in town) has recently introduced a 5% surcharge. 

I believe that this is too much.

I could vote with my feet but that would mean no pizza, and that IS NOT an option, so I pay via eftpos.

Anyone know what is considered a reasonable surcharge?




.....c'mon sucker lick my battery........
binary solo...0000110000110000111...

View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3
19282 posts

Uber Geek
+1 received by user: 2600
Inactive user


  Reply # 290360 15-Jan-2010 16:24
Send private message

You believe this is to much but you need to know what the credit card company charges them

261 posts

Ultimate Geek


  Reply # 290363 15-Jan-2010 16:32
Send private message

Vote with your cash. Pay the bill in ten cent coins.

 
 
 
 


637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 290365 15-Jan-2010 16:43
Send private message

JimmyLizar: Background on topic here

It mentions in the article that the surcharge can only be to cover costs and not to increase revenue.

Our local pizza shop, which enjoys a monopoly (as there is only one pizza shop in town) has recently introduced a 5% surcharge. 

I believe that this is too much.

I could vote with my feet but that would mean no pizza, and that IS NOT an option, so I pay via eftpos.

Anyone know what is considered a reasonable surcharge?

5% is high. When I was a CC merchant I paid 1.65% on Visa/MC and 2.9% on Amex.

I took to paying CC-surcharge merchants in cash (and getting a receipt!), since the cash handling costs are MUCH higher than a typical credit card transaction.

The surcharge nonsense that appears to be coming to NZ is dumb.

2675 posts

Uber Geek
+1 received by user: 525


  Reply # 290366 15-Jan-2010 16:44
Send private message

patatrat: Vote with your cash. Pay the bill in ten cent coins.


Only if your Pizza costs less that $5.

10c coins are only legal tender up to this amount.

I would ask you credit card company ( bank) what they would call reasonable, ( they will know what the merchant is paying)- the CC companies are by all accounts not overly happy if merchants start to discourage usage with high fees...

http://www.legislation.govt.nz/act/public/1989/0157/latest/DLM200015.html#DLM200015



Legal tender

 (1) Every bank note issued, or deemed to be issued, under this Act shall be a legal tender for the amount expressed in the note.
(2) A tender of payment of money, to the extent that it is made in coins issued, or deemed to be issued, under this Act, shall be a legal tender,

(a) in the case of coins of a denomination of $10 or more, for the payment of any amount

(b) in the case of coins of a denomination of $1 or more but less than $10, for the payment of any amount not exceeding $100:

(c) in the case of coins of the denomination of 5 cents or more, but less than $1, for the payment of an amount not exceeding $5:

(d) in the case of any coins of the denomination of less than 5 cents, for the payment of an amount not exceeding 20 cents.

3) The references to coins and bank notes in subsections (1) and (2) do not include references to coins and bank notes that have been called in.

















321 posts

Ultimate Geek


  Reply # 290368 15-Jan-2010 16:51
Send private message

johnr: You believe this is to much but you need to know what the credit card company charges them


You are right, I dont know that it is too high until I know what the upper limit for merchant surcharges are.

This is the info I was fishing for.

wellygary:  Only if your Pizza costs less that $5.

10c coins are only legal tender up to this amount.


I (and I wager) that most other people are completely unaware of this fact




.....c'mon sucker lick my battery........
binary solo...0000110000110000111...

3769 posts

Uber Geek
+1 received by user: 214

Trusted

  Reply # 290370 15-Jan-2010 16:56
Send private message

Max they would be paying is 2.5% in CC fees to visa/master card and 3% to Amex.




Do whatever you want to do man.

  

1163 posts

Uber Geek


  Reply # 290375 15-Jan-2010 17:14

billgates: Max they would be paying is 2.5% in CC fees to visa/master card and 3% to Amex.


Where do you get that information from. From what I have heard there is a scale depending on how much money goes through by CC per month. I get charged about 4.25% by the online CC provider I use.

19282 posts

Uber Geek
+1 received by user: 2600
Inactive user


  Reply # 290376 15-Jan-2010 17:23
Send private message

JimmyLizar:
johnr: You believe this is to much but you need to know what the credit card company charges them


You are right, I dont know that it is too high until I know what the upper limit for merchant surcharges are.

This is the info I was fishing for.

wellygary:? Only if your Pizza costs less that $5.

10c coins are only legal tender up to this amount.


I (and I wager) that most other people are completely unaware of this fact


Sounds like to me they are trying to make a profit after reading some of these posts

Name and shame

8020 posts

Uber Geek
+1 received by user: 386

Trusted
Subscriber

  Reply # 290377 15-Jan-2010 17:26
Send private message

There is no free lunch... the retailer/store always pays a fee to Visa/Amex/etc when a credit card is used.

Previously many stores stated a their price then offered a 2-5% discount for paying by cash/eftpos/direct credit.

Now they are doing it the other way around, state the base price and add a surcharge for people using credit cards.

If you think about it anyone not offering a discount for cash/eftpos/direct credit previously was actually using people who pay via cash/eftpos/direct credit to partially subsidise the price of people paying by credit card.

You can thank the commerce commission for the change, it's a direct result of their clampdown last year which stopped a credit card company ban on retailers charging such extra fees for credit card use.

The credit card companies hate the practice of adding a surcharge roughly equal to the cost the store has to pay them as discourages credit card use.

1163 posts

Uber Geek


  Reply # 290383 15-Jan-2010 17:40

johnr:
JimmyLizar:
johnr: You believe this is to much but you need to know what the credit card company charges them


You are right, I dont know that it is too high until I know what the upper limit for merchant surcharges are.

This is the info I was fishing for.

wellygary:? Only if your Pizza costs less that $5.

10c coins are only legal tender up to this amount.


I (and I wager) that most other people are completely unaware of this fact


Sounds like to me they are trying to make a profit after reading some of these posts

Name and shame


I think saying that is unfair, and unfair to base you opinion based solely on what a few people have posted. We don't actually know their costs, but credit card companies can charge companies between 2-5%. Therefore they are within that limit.


637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 290389 15-Jan-2010 18:03
Send private message

robbyp:Where do you get that information from. From what I have heard there is a scale depending on how much money goes through by CC per month. I get charged about 4.25% by the online CC provider I use.

There are many ways that merchant fees are set - which include the type of business, location, average value of transactions, total value of transactions, risk profile (charge backs) etc.  I recall paying 2.5% on Visa/MC when setting up the merchant account, which subsequently got down to 1.65% when we hit $200K/month in transactions.  Amex introduction rate was 3.6%, slowly dropping over time.

I'd be surprised if a pizza company was paying more than 3% though.



321 posts

Ultimate Geek


  Reply # 290394 15-Jan-2010 18:41
Send private message

Well its not a pizza chain just a local (and very good) pizza shop.

I am not going to name and shame as I cant be certain that they are adding a surcharge greater than what they get charged. I have no way of knowing this without directly asking them and I doubt whether they would tell me anyway.

Their 5% surcharge sounds like it may be on the very upper limit but so might their merchant fees be.

Looks like I will just have to accept it or use eftpos




.....c'mon sucker lick my battery........
binary solo...0000110000110000111...

2915 posts

Uber Geek
+1 received by user: 414

Trusted
Subscriber

  Reply # 290396 15-Jan-2010 18:44
Send private message

robbyp:
billgates: Max they would be paying is 2.5% in CC fees to visa/master card and 3% to Amex.


Where do you get that information from. From what I have heard there is a scale depending on how much money goes through by CC per month. I get charged about 4.25% by the online CC provider I use.


Online merchants pay about 1-2% more as the risk factor is much higher.  It would not be unusual to pay 4.25%.  Also, if you didn't have to get a merchant account, then you are actually dealing with a company charging you for both merchant account and gateway fees (a standard account from your bank will not usually include a gateway).




I finally have fibre!  Had to leave the country to get it though.


1163 posts

Uber Geek


  Reply # 290398 15-Jan-2010 18:55

JimmyLizar: Well its not a pizza chain just a local (and very good) pizza shop.

I am not going to name and shame as I cant be certain that they are adding a surcharge greater than what they get charged. I have no way of knowing this without directly asking them and I doubt whether they would tell me anyway.

Their 5% surcharge sounds like it may be on the very upper limit but so might their merchant fees be.

Looks like I will just have to accept it or use eftpos


I use cash or eftpos anyway. I mainly use credit card for online purhcases, or from comapnies that I have to order a product through, just in case they end up going out of business before they supply it. If I was getting airpoints I may use it more, but someone has to pay for those airpoints. Perhaps the most fair way of doing it, is the CC compony charging their cusomters directly for each transaction, but then many people wouldn't use them The CC's have come out complaining about retailers, becuase this change by the comcom will probably mean that CC's are used less, which means less profits by the CC companies. This change is perhaps a good thing for NZ, as our amount of personal borrowing is way out of control.



321 posts

Ultimate Geek


  Reply # 290402 15-Jan-2010 19:02
Send private message

We only use our CC's the good way ie. we pay off the whole balance each month.

We get airpoints (and travel insurance) so we use the CC for everything we possibly can.

Looks like the list of companies that we can use it at will get shorter over time




.....c'mon sucker lick my battery........
binary solo...0000110000110000111...

 1 | 2 | 3
View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

Air New Zealand experiments with blockchain technology
Posted 23-Nov-2017 15:39


Symantec selects Amazon Web Services to deliver cloud security
Posted 23-Nov-2017 10:40


New Zealand Ministry of Education chooses Unisys for cloud-based education resourcing management system
Posted 22-Nov-2017 22:00


Business analytics software powers profits for NZ wine producers
Posted 22-Nov-2017 21:52


Pyrios strikes up alliance with Microsoft integrator UC Logiq
Posted 22-Nov-2017 21:51


The New Zealand IT services ecosystem - it's all digital down here
Posted 22-Nov-2017 21:49


Volvo to supply tens of thousands of autonomous drive compatible cars to Uber
Posted 22-Nov-2017 21:46


From small to medium and beyond: Navigating the ERP battlefield
Posted 21-Nov-2017 21:12


Business owners: ERP software selection starts (and finishes) with you
Posted 21-Nov-2017 21:11


Why I'm not an early adopter
Posted 21-Nov-2017 10:39


Netatmo launches smart home products in New Zealand
Posted 20-Nov-2017 20:06


Huawei Mate 10: Punchy, long battery life, artificial intelligence
Posted 20-Nov-2017 16:30


Propel launch Disney Star Wars Laser Battle Drones
Posted 19-Nov-2017 21:26


UFB killer app: Speed
Posted 17-Nov-2017 17:01


The case for RSS — MacSparky
Posted 13-Nov-2017 14:35



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.