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?
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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
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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
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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.
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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
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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.”
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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
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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