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You won’t sell this idea in Europe. Here the price tag for anything is the full amount you pay - including all commissions and taxes. People use debit cards, th
by ivan_gammel 3y ago
You won’t sell this idea in Europe. Here the price tag for anything is the full amount you pay - including all commissions and taxes. People use debit cards, the paid amount is immediately deducted from bank account. If customers are forced to calculate how much they actually will spend on each transaction, they will instantly switch back to cash.
- f6v 3y agoYou can show the full price and the breakdown at the same time. That’s how it works eg in the Airbnb app: I see the price host charges and the fee I pay to Airbnb. The taxi apps show their fee as well.
- kelnos 3y agoThat doesn't work in a brick and mortar store where they wouldn't know your card's fee until you go to pay. Also doesn't work online if you're not signed in, or if it's the first time you've visited that store and you haven't given them a card number yet.
- kmlx 3y agobut they would know how much tax the customer would have to pay.
- Symbiote 3y agoIn Denmark, the additional fees charged for foreign (non-EU I think) or corporate cards are passed on to the customer. The price says 100DKK, but they pay 101.50DKK or whatever it is.
- carlosjobim 3y agoThat's probably not the card fees, but the currency exchange.
- wodenokoto 3y agoNo, that’s the card fee. At point of sale you usually choose which side does the currency exchange (you choose on the terminal if you want to pay in home or local currency)
- Symbiote 3y agoHere's a sticker from a self checkout at a large supermarket (Føtex): https://imgur.com/a/w9sg1ey https://imgur.com/a/w9sg1ey It says (roughly) "Payment cards without fee: All Danish and foreign debit cards" "Payment cards with fee: 0.9375% Danish issued; 1.75% foreign issued."
- carlosjobim 3y agoWow, so that's even worse. Then you can only avoid this fee using ATM cards or cash.
- Symbiote 3y agoVery few people pay the fee, most people pay with a debit card or cash. People trying to get air miles, cashback or similar have to pay the cost of that.
- carlosjobim 3y agoVisa electron/maestro are they debit cards now? Back in the day they were only for ATMs and very few businesses. Don't most people have the normal visa/mc debit cards there?
- petre 3y agoYup. Visa Electron and Maestro are quite normal debit cards. I have one of those as well. Apart from renting cars you can pay for just about anything with it. Maestro has an ATM withdrawal fee even when you use it in the emitting bank's ATMs, which is a reason why I avoid it like the plague.
- 3y ago
- petre 3y agoDanish banks already have ridiculous comissions for wire transfers to other EU countries. Like 8€ for a 1500 DKK transfer.
- jkaplowitz 3y agoThe price tag in Europe already has at least one exception in some countries like Germany: bottles and cans subject to the deposit system usually have the deposit added on top of the listed price. Of course, one can recover the deposit by returning the bottle or can to a suitable store, but at the point of sale it is usually added on top of the listed. (The price listing often acknowledges this addition explicitly, with text like "zzgl. 0,25€ Pfand".) But yeah, I guess that doesn't differ by payment method, so it wouldn't affect the choice of payment method. And it's not a percentage, so it's easier mental math.
- ivan_gammel 3y agoYes, deposit is different: it is fixed absolute amount on a single specific product, it is refundable, so in the end your expense will be the price without it. Also it is much higher than any transaction costs. Transaction fees on the other side do require some calculation effort and you have to remember the percentage.
- Semaphor 3y agoBut a) those prices are straightforward, 0.08, 0.15 and 0.25 are the options depending on the type of bottle, b) as you said, you get the money back, and most importantly c) the deposit money is included on the price sticker.
- eru 3y agoAldi already does a credit card surcharge in some countries.
- Osiris 3y agoThat’s not the case on the US (tax is added after the fact) and there hasn’t been a massive switch to cash. Convenience is a powerful thing.
- ivan_gammel 3y agoConsumer behavior in different countries is different and depends on many factors - culture, mindset, local customs and habits, structure of taxes and regulations etc. American system will not be convenient for Germans, for example (I personally do not understand how it can be convenient).
- qwytw 3y ago> personally do not understand how it can be convenient It can be very convenient for retailers since sales can vary in different counties let alone states: https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#/media/File:Sales_tax_by_county.webp https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat... just try to imagine what a mess it would be if any advertisement, price sticker etc. would have to show the full price.
- mrguyorama 3y agoIt wouldn't be difficult at all. Price stickers are printed/managed in store often enough. Any company that allows you to purchase online already had to deal with differing sales tax, and everything is owned by like one company right now anyway so they already have systems in place to deal with differing tax rules in different states.
- qwytw 3y agoBut it's not just states. In California (and I guess many other places) towns in the same country can have different tax rates. Sure price stickers is not an unsolvable issue but advertising prices including tax publicaclly would be almost impossible. > everything is owned by like one company right now anyway so they already have systems in place to deal with differing tax rules in different states. Yeah I agree it would generally be a much higher burden for small businesses than for Amazon.
- polski-g 3y agoThe fee could be done annually from the credit card company itself. (ie: You made 300 transactions this year, that is $300).