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Prepare for fees on most credit card transactions

Discussion in 'Anything goes' started by Rusty Shackleford, Dec 20, 2013.

Page 2 of 5
  1. trifectarich

    trifectarich Well-Known Member

    As the story notes, this is very consumer-unfriendly; I see this going nowhere. I'm willing to wager that if I go buy a sofa and I tell the salesperson I'm charging this and I'm paying the same rate as cash, they'll take the offer. That'll become store policy the first time they realize there's $1,000 walking out the door.

    All the credit card companies have to come to grips that there's a new way to buy things that doesn't involve any of them and it's only going to become more widespread.
     
    trifectarich, Dec 20, 2013
    #13
  2. imjustagirl

    imjustagirl Active Member

    What way is that?
     
    imjustagirl, Dec 20, 2013
    #14
  3. LongTimeListener

    LongTimeListener Well-Known Member

    That's great for the big-ticket items where there's some flex. But think about Target or the grocery store.

    There's a huge grocery-store chain where I grew up -- actually it was one grocery store when I was there but has expanded throughout a 150-mile radius since then -- and they still don't take credit cards. They are one of the most successful businesses I have ever seen, in large measure because their prices are lower.
     
    LongTimeListener, Dec 20, 2013
    #15
  4. JackReacher

    JackReacher Well-Known Member

    A grocery store that takes cash only would need some very low prices for me to become a regular shopper there. Like incredibly low.

    There are probably a handful of places -- maybe a dozen -- that I still go to despite them taking cash only. None on a regular basis, though.
     
    JackReacher, Dec 20, 2013
    #16
  5. Boom_70

    Boom_70 Well-Known Member

    Most stores that I go to seem like they are happier taking credit cards and
    not having to deal with the cash. Returning something on a credit card is
    a lot easier than it is for something you paid cash for.

    Can't see this going anywhere.

    Amex charges stores a bigger percentage than Visa or Mastercard.
     
    Boom_70, Dec 20, 2013
    #17
  6. JackReacher

    JackReacher Well-Known Member

    I can't remember the last time I saw anyone use American Express.
     
    JackReacher, Dec 20, 2013
    #18
  7. Dyno

    Dyno Well-Known Member

    Really?
     
    Last edited by a moderator: Jan 1, 2015
    Dyno, Dec 20, 2013
    #19
  8. LongTimeListener

    LongTimeListener Well-Known Member

    I've known one guy who used American Express regularly. He was a complete asshole who enjoyed calling and telling them not to pay the restaurant bill because the service was terrible. It wasn't that he was really picky, this was actually his plan before he left the house to eat.

    Don't know if it actually works, but he swore by it.
     
    Last edited by a moderator: Jan 1, 2015
    LongTimeListener, Dec 20, 2013
    #20
  9. Inky_Wretch

    Inky_Wretch Well-Known Member

    Hang out with me and you will. It's the only card - aside from debit - that I use.
     
    Last edited by a moderator: Jan 1, 2015
    Inky_Wretch, Dec 20, 2013
    #21
  10. nmmetsfan

    nmmetsfan Active Member

    Sounds like a peach
     
    Last edited by a moderator: Jan 1, 2015
    nmmetsfan, Dec 20, 2013
    #22
  11. 93Devil

    93Devil Well-Known Member

    Could one vendor, say Food Lion, advertise that they choose not to add on the extra cost?
     
    93Devil, Dec 20, 2013
    #23
  12. The Big Ragu

    The Big Ragu Moderator Staff Member

    There are already fees on credit card transactions.

    Merchants already pass along the swipe fees in the cost of their goods -- under the assumption that a good percentage of people will choose a credit or debit card for its convenience.

    The only thing this could possibly change is a landscape in which some retailers charge lower prices for those who pay cash -- if some merchants want to offer differential pricing.

    I really doubt that is going to happen, though. Too much of a hassle to run most retail businesses that way, and you run a huge risk of running customers away.

    There are multiple factors that go into pricing products. Just based on scale, a big box retailer can still pass along swipe fees making it look like everyone pays the same price, and their prices will still be lower than the cash price a smaller retailer trying that price differentiation offers.

    For most consumers, though, they won't understand the underlying dynamics. They will see it as, "Retailer A is charging me a fee to use my credit card, while Retailer B isn't." When they both really are.
     
    The Big Ragu, Dec 20, 2013
    #24
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