Surcharge on Credit Card transactions

[GoStumpy]

I know our Auto Auction place charges 2.7% for credit card transactions... there's no purchase under $300, and most are $1-5000! OUCH!

[smileyKT]

I would definitely be voting with my feet and take my business elsewhere if I was being surcharged.

[Ciel]

Would love to know at what point in the business or store would a customer see the information posted about the surcharge and how it's calculated? Will the notice be on the door and at the till in a large and visible manner? Or will handwritten notes be hastily taped up? I'm sure the latter would not be compliant signage considering accessibility access rules making their way through the business sector.

Usually a business is given a percentage rate by card company that is charged on each cc sale. Places that have volume or perhaps higher $ sales probably can negotiate a better and lower rate on the sales commission %. But businesses never get that percentage refunded to them if a cc customer were to return part or all of a sale.

So I would not be surprised if competing stores visited their competitors to find out what card % rates they are using for surcharges-market information, if you will.

[blueeyetea]

But businesses never get that percentage refunded to them if a cc customer were to return part or all of a sale.

Considering you have to provide the credit card to get a refund, I suspect they get they fees back, since in essence, there is no sale anymore.

[Natalka]

Decision on this to come in the next few weeks

http://globalnews.ca/news/453933/canadian-credit-card-users-may-be-subject-to-an-increased-surcharge/

http://www.calgaryherald.com/busines...944/story.html

[Ciel]

@blueeyetea-when a customer refunds merchandise and gets the refund put back on the credit card, the seller/retailer does not get the % of the original sale back from credit card issuer. No that % remains the credit card issuer's fee on the sale despite its return. Strictly one-way money flow, those card fees.

[Ciel]

Since we are discussing surchages-I noticed on a Toronto Star Delivery promo card about discounted rates for home delivery to new customer that there is fine print. Specifically if you are a new account, there will be a $3.50 fee +HST charged to you to establish the account. So what does the fee mean and what does it cover-the minute or so to enter data into the software?
And the credit card customers qualify for a $5 coffee shop gift card, not the customers using other forms of tender.

[saundyl]

As a retailer/service provided when i had a debit machine for processing purchases last year i paid 2 cents per transaction done via debit and 2% of every transaction processed via visa or mastercard was paid for fees to my Debit company. It irked me and often i would offer a free service such as a data transfer or a product such as memory stick or additional ram in their computer if people were willing to pay via debit, check or cash rather than credit card for larger transactions. 90% of my customers took the freebie.

[saundyl]

Considering you have to provide the credit card to get a refund, I suspect they get they fees back, since in essence, there is no sale anymore.

When refunds were processed the money went back to the customer yet my business still had to pay the 2% fee on credit cards and 2cents per transaction on debit (4 cents with a refund transaction) I never got a refund or discount for processing refunds back to people electronically. My provider was Elavon. They were more affordabile than Moneris, NOVA or FirstData even with needing to get a costco business account membership.

[walkonby]

Decision on this to come in the next few weeks

http://globalnews.ca/news/453933/canadian-credit-card-users-may-be-subject-to-an-increased-surcharge/

http://www.calgaryherald.com/busines...944/story.html

hmmm, that may well affect the way I rack up loyalty points by using my CC's exclusively. If it does change I will be a cash only customer, that would just not be worth my while to pay more because I am using a credit card when I pay each one's full balance every month now. Silliness.

[tobiwobi]

I think that credit card companies should charge storeowners a flat fee for all cards. I don't think it's fair that credit card companies advertise all these perks for using a card to the consumer, but then charge the storeowners more to process these cards that come with perks, using as leverage the fact that a storeowner who does not comply will obviously lose customers, who are more likely to blame the merchant for trying to slap them with a surcharge, and not the credit card company in whose pocket that surcharge actually goes.

[FallenPixels]

When refunds were processed the money went back to the customer yet my business still had to pay the 2% fee on credit cards and 2cents per transaction on debit (4 cents with a refund transaction) I never got a refund or discount for processing refunds back to people electronically.

In fact some charge an additional CC fee on refunds!

[saundyl]

As a small business it was very tempting sometimes NOT to offer debit or visa/mastercard

[FLA]

If the surcharge is optional, large stores probably not going to implement it because taking care of cash also costing money.

[saundyl]

Everywhere has fees to handle money - even most banks charge a monthly fee for an account.