3 ms·

Payment convenience fees are evil. Just a way to hide markup.

by ivalm 3y ago

musicale 3y ago
I think the pitch of these parasitic "billing" companies is "we'll allow you to raise your rates without actually raising your rates" - the customer pays higher rates, the middleman takes the largest cut of the "billing fee", and the company gets a kickback as well as potential tiny savings from outsourcing sending billing emails. Negative value to the customer, but it's a hugely profitable and dirt cheap business for the middleman, so I expect we'll see a lot more of this scam wherever it can be implemented.
maerF0x0 3y ago
IMO all of these bullshit fees are just a lack of competition in plain sight. The only fix I can think of is to simply refuse to pay them, either by not buying them that way, or by only patronizing businesses without them. - Resort fees in vegas - Amenity and other fees on top of rent - "convenience" fee on movie/event/concert tickets The only sort of regulation that I can think of that might address this is to make it false advertising (bait and switch) to advertise a price that is not net of all non-optional fees. (and perhaps taxes too) Also I have to say I kind of don't blame the businesses for doing this. American consumers are so complacent compared to other parts of the world. People seem to be just fine with paying whatever price the vendor comes up with and not fighting back (including negotiating or refusing to patronize the business). Maybe it's a sign we're just too rich, or maybe too "polite"?
- toomuchtodo 3y ago
  Regulation is coming. Find a junk fee? Report it to the FTC. https://www.ftc.gov/media/71268 https://www.ftc.gov/media/71268 https://www.whitehouse.gov/briefing-room/statements-releases/2023/07/19/fact-sheet-biden-harris-administration-takes-on-junk-fees-in-rental-housing-to-lower-costs-for-renters/ https://www.whitehouse.gov/briefing-room/statements-releases... https://www.reuters.com/world/us/white-house-expands-war-junk-fees-rental-housing-unveils-new-merger-guidelines-2023-07-19/ https://www.reuters.com/world/us/white-house-expands-war-jun... https://www.whitehouse.gov/cea/written-materials/2023/03/21/how-junk-fees-distort-competition/ https://www.whitehouse.gov/cea/written-materials/2023/03/21/... https://www.ftc.gov/news-events/news/press-releases/2022/12/federal-trade-commission-extends-public-comment-period-potential-rule-regarding-harms-caused-junk https://www.ftc.gov/news-events/news/press-releases/2022/12/... https://www.forbes.com/sites/michaelgoldstein/2023/02/21/did-president-biden-just-take-on-the-hotel-industry-over-resort-fees/ https://www.forbes.com/sites/michaelgoldstein/2023/02/21/did...
  - maerF0x0 3y ago
    Done. Captured consumers is another one. IMO unless it's part of the advertised price, it must be optional. If they cannot remove it they should have to waive it, by law.

Payment convenience fees are evil. Just a way to hide markup.

by ivalm 3y ago

Payment convenience fees are evil. Just a way to hide markup.

I think the pitch of these parasitic "billing" companies is "we'll allow you to raise your rates without actually raising your rates" - the customer pays higher rates, the middleman takes the largest cut of the "billing fee", and the company gets a kickback as well as potential tiny savings from outsourcing sending billing emails. Negative value to the customer, but it's a hugely profitable and dirt cheap business for the middleman, so I expect we'll see a lot more of this scam wherever it can be implemented.

maerF0x0 3y ago

IMO all of these bullshit fees are just a lack of competition in plain sight. The only fix I can think of is to simply refuse to pay them, either by not buying them that way, or by only patronizing businesses without them. - Resort fees in vegas - Amenity and other fees on top of rent - "convenience" fee on movie/event/concert tickets The only sort of regulation that I can think of that might address this is to make it false advertising (bait and switch) to advertise a price that is not net of all non-optional fees. (and perhaps taxes too) Also I have to say I kind of don't blame the businesses for doing this. American consumers are so complacent compared to other parts of the world. People seem to be just fine with paying whatever price the vendor comes up with and not fighting back (including negotiating or refusing to patronize the business). Maybe it's a sign we're just too rich, or maybe too "polite"?

toomuchtodo 3y ago
Regulation is coming. Find a junk fee? Report it to the FTC. https://www.ftc.gov/media/71268 https://www.ftc.gov/media/71268 https://www.whitehouse.gov/briefing-room/statements-releases/2023/07/19/fact-sheet-biden-harris-administration-takes-on-junk-fees-in-rental-housing-to-lower-costs-for-renters/ https://www.whitehouse.gov/briefing-room/statements-releases... https://www.reuters.com/world/us/white-house-expands-war-junk-fees-rental-housing-unveils-new-merger-guidelines-2023-07-19/ https://www.reuters.com/world/us/white-house-expands-war-jun... https://www.whitehouse.gov/cea/written-materials/2023/03/21/how-junk-fees-distort-competition/ https://www.whitehouse.gov/cea/written-materials/2023/03/21/... https://www.ftc.gov/news-events/news/press-releases/2022/12/federal-trade-commission-extends-public-comment-period-potential-rule-regarding-harms-caused-junk https://www.ftc.gov/news-events/news/press-releases/2022/12/... https://www.forbes.com/sites/michaelgoldstein/2023/02/21/did-president-biden-just-take-on-the-hotel-industry-over-resort-fees/ https://www.forbes.com/sites/michaelgoldstein/2023/02/21/did...
- maerF0x0 3y ago
  Done. Captured consumers is another one. IMO unless it's part of the advertised price, it must be optional. If they cannot remove it they should have to waive it, by law.