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businesses that charge a higher price if you use a credit card

I've noticed lately more companies are charging a 3 or 3.5% surcharge if you use a credit card. And I think that's a good thing. Those credit card companies charge them a fee, so why shouldn't they pass that fee on to customers?

by Anonymousreply 8July 10, 2025 1:01 PM

Because some things are the cost of doing business.

by Anonymousreply 1July 10, 2025 4:51 AM

This is called a Merchant Service Fee. The merchant pays the bank a pre-negotiated fee of between 1.5% and 3.5% fee for using their payment services.

Now that the Trump administration has decimated US consumer protection laws, the banks will be able to up this fee which will then be passed on to customers.

by Anonymousreply 2July 10, 2025 5:58 AM

There is a cost to businesses in managing cash too. Having everything electronic is a huge savings.

by Anonymousreply 3July 10, 2025 12:10 PM

Depends on the business margins.

by Anonymousreply 4July 10, 2025 12:15 PM

But R1, is that cost of doing business shifting the cost to the customers using cash or a debit card for the purchasers paying with borrowed money on a credit card which has higher fees. Why should I be paying for the credit card user's extra fees?

by Anonymousreply 5July 10, 2025 12:15 PM

Not only is it the cost of doing business OP, but it is also a BS effective price increase without calling it a price increase.

Businesses know damn well few people carry cash anymore (and as R3 points out, there are risks/issues with having cash on hand), and they can increase their prices effectively by 5%, but get to blame someone else.

by Anonymousreply 6July 10, 2025 12:16 PM

Nowadays I carry cash when I go to restaurants that are making this upcharge.

I also carry cash for those restaurants that want you tip for counter service when you use your card. I may or may not leave a tip depending on performance of delivery, not at the point of purchase before I get my food.

by Anonymousreply 7July 10, 2025 12:18 PM

This is what they call "Trickle Down Economics".....isn't it great? It works so well, Mr. Reagan!

by Anonymousreply 8July 10, 2025 1:01 PM
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