I’ve run into increased cost of using a credit card in eateries. The eateries are not large chains but small single proprietorship eateries. It is in the range of 2 to 3% of the bill. I assume it is equal to what a credit card company charges the restaurant.
I’ve heard that a plumber in town has the same practice.
It’s not a big problem because it is stated on the menu. I assume it helps keeps prices down.
I wonder if other folks here on the board have run into this practice?
Sure, the cash only style is still strong, especially in old line small towns or specialized neighborhoods; often the owners are not interested in serving tourists, and their locals are all mostly cash anyway.
d fb
I renewed my membership at The Henry Ford tonight. $3 charge for renewing on line, and credit card is the only way to renew on line. Membership price increase takes effect on the 15th.
Steve
It sounds like they’ve brought in LiveNation to “skim the gate”.
intercst
I’ve run into it in several places.
One local golf course says they will add 3% to cover the credit card fee, I pay cash. Another local stand alone service business says the same, they get a check. Interestingly, my vacation condo HOA wants to charge 3% even if I pay by electronic transfer. No way on earth should that cost them anywhere near that much if anything. I mail a check.
My veterinarian and my dentist offer 10% discount for cash or check. One restaurant I frequent adds 3% for credit card payment.
I’ve encountered it at several locations, mostly restaurants. Some tout a “3% discount” for cash, others a “3% surcharge” for credit. Same thing of course, only the psychology behind the perception of paying less or avoiding paying more differs.
When I encounter this… I take my business elsewhere.
There must be something truly “special” for me to voluntarily pay that “vig”.
On the flip side, I often tip… And 20% is my norm.
ralph
The law just changed in Kansas.
As of January 1, the Consumer Protection Division of the Sedgwick County DA’s Office advised that merchants in the state can legally add a surcharge to credit card transactions, “as long as clear notice is provided to the customer before the sale.”
I recall a time when the agreement between the card processor and the merchant forbade charging more for credit card payments. I guess that has gone by the wayside.
–Peter
I agree. When did that disappear?
My slight way to get back at them…on my main credit card I get 3x points on dining. And then American Airlines has a program that gives you miles for using a non-AA card at some places, including some restaurants. And then some of the same restaurants have reward points.
I guess this is why some places have to charge fees … to pay for all these rewards
Mike