Credit card fees

[jgenie]

Are you seeing more businesses charging a fee if you pay by credit card? Gas in our area has a charge if you use credit. I’m now seeing a fee in many other places - apple orchard, hair salon, restaurants, specialty markets, etc. I’m in the northeast so maybe it’s regional.


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[AnnieW625]

We have had gas up charges (usually .10 a gallon) in California for probably the last 10-15 years. I tried to avoid them as long possible but now it seems like they are everywhere and when I am in a pinch I grin and bear it and pay the fee. Most times though I really still try to fill up exclusively at Costco because they don’t do this. I don’t usually have cash for gas and get more rewards by using my Costco Visa Card. Costco Rewards for all gas stations is 4% so if I am paying a $1.60 more (.10 x 16 gallons) by paying the up charge I am routinely getting more than that back in a refund: example: $4.49 x 16 = $71.84 x.04=$2.87-$1.60=$1.27 with credit rebate vs. paying cash (and despite paying the up charge I am getting an additional $1.27).

I have seen a trend in true small businesses including restaurants and nail salons taking either Venmo/Zelle or giving out additional benefits like 10 times paying cash=$10 off your next nail
service. I tend to see it here more with Asian owned establishments vs. other minority owned or white owned businesses though, but one American diner restaurant we go to charges a fee and I always forget to bring cash so I pay the .35 because I like their food. Other than the gas stations I have yet to see it being done by a regional or large corporate/national business.

My hairdresser is white and at her prior salon only took cash, Venmo, or Zelle. She is also 26 so very used to doing business with Venmo or Zelle. I wonder with the new regulations or Venmo and Zelle if this will push people back to cash only.


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[SnuggleBuggles]

I haven't seen that. My stylist/salon owner always offers a discount if you pay cash, rather than a fee if you pay credit card. I think that's just her creative way of getting around some rules credit cards likely impose.

[wendibird22]

I’m curious too. Both my hair salon and my nail salon will only allow you to tip via cash or Venmo. The nail salon charges a fee if you pay for the service on credit card.


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[LD92599]

Yes, it's definitely more prevalent with small businesses and seeing many many more businesses doing it. We're in Northern NJ. We started doing it several years ago w/ our clients (we're a small business) but we "eat" part of the fee and basically split it. But our clients are routinely charging $5,000-$10,000 so that % is a huge hit to the business. Clients don't usually mind because 1) they are building rewards/miles and 2) it's part of doing business.

It hadn't changed my choice though of cash or credit; and I tend to only get gas at BP and while they used to be same price cash or credit, the one closest to my house is a 10¢ difference. I try to go to the other ones that are not only cheaper....but same price cash or credit.

[lizzywednesday]

Are you seeing more businesses charging a fee if you pay by credit card? Gas in our area has a charge if you use credit. I’m now seeing a fee in many other places - apple orchard, hair salon, restaurants, specialty markets, etc. I’m in the northeast so maybe it’s regional...

Certain gas stations, like Valero, have always had an upcharge for using plastic vs cash in my area; they justify it by using the transaction charges as the reason they're upcharging.

For a smaller business, if they are processing your charge using something like Square point-of-sale, they increased their charges for users last year. My Girl Scout troop used to use Square for cookie booths, but with our council covering any processing fees for using the cookie sale software, we stopped using Square in favor of going fee-free.

[candaceb]

Being a small business owner has made me choose to pay in cash whenever I can for small business purchases. If you pay with Venmo, I get 2% less, if you pay with Square, it's a little over 3%. 3% is pretty much standard for credit card fees. It adds up! Especially with overall inflation right now, credit fees may be a way to avoid increasing prices. When people ask me my preferred payment methods, I say "check, cash, Venmo or Square".

[ezcc]

Gas stations do this here, and have for a long time. For some reason I thought it wasn't allowed other places but maybe I am wrong.

[SnuggleBuggles]

Yesterday ds2 and I were eating at an upscale food court type place and one of the stalls had a sign next to the credit card reader that said they charged a fee for credit or debit cards.

[ezcc]

So I just did a quick search- looks like this was prohibited by the credit card companies until 2013 when there was a lawsuit. It is still illegal in some states though.