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The charge is to the merchant, not to the customer. In general, the price marked on the good factors in the credit card fees, because almost everyone uses credi
by bdowling 8y ago
The charge is to the merchant, not to the customer. In general, the price marked on the good factors in the credit card fees, because almost everyone uses credit cards. So, if a buyer uses cash or a debit card, he should always negotiate for a 1-2% discount.
Edit: To clarify, some U.S. merchants do charge a "credit card fee" or enforce a minimum charge amount to all customers using credit cards for their purchases. I have never seen one charge a surcharge only to Visa users or only to Amex users.
- mcny 8y agoVisa should (and I think already does) prohibit charging extra for using visa versus other payment methods. Edit: seems like they make a distinction between charging extra versus giving a cash discount and the latter is more acceptable?
- cm2187 8y agoI have seen additional charges to the client on certain websites for using credit cards or amex. But I am in Europe, not in the US.
- daemin 8y agoIn Australia the government put in legislation to cap the maximum credit card surcharge that a merchant could charge the customer to the actual fee that they pay on the card. When I was there I remember things like $10 or $20 minimum and also anywhere up to 5-10% surcharge for paying with a card.
- maaark 8y agoThe UK did too. The cap is 0.
- thesimon 8y agoWell, the EU did.
- ImaCake 8y agoThey basically banned the $10 minimum. It isn't all in favour of the CC companies though. They are limited in what they can charge vendors for each transaction, which is why credit card churning isn't worth as much money in Australia as the US.
- nine_k 8y agoIndeed, Ikea in Brooklyn offers 1% discount if you pay with a debit card; didn't check elsewhere but likely it's the same in their stores over the US.
- perl4ever 8y agoGiven credit cards that offer 2% back, a 1% discount for debit or cash isn't enough.