Businesses charging credit card swipe fees

[Danb541]

There's a little neighborhood bar my wife and I were going to around once a week for around 5 years. The owner is the bar tender and we got to know him well, became friends even outside of the bar. We haven't been there for over a year, here is why.

Wife and I stopped in on a Thursday evening, had a couple drinks and ate. I got the bill, which is never itemized, I never even bothered to ask for an itemized bill in the past. It was like $64.00 or something and I commented to my wife, that seems kind of high. He heard me and asked if I wanted an itemized bill, I said sure. Well I looked and there was a 4% credit card swipe fee (I was also overcharged but believe that was an honest mistake). This fee rubbed me the wrong way. Nowhere in his bar is it posted he's charging this. To me this felt like theft. I don't plan on going back there again.

If I go to a business, I'm not going to be charged to pay my bill without being told about it.

Am I out of line?

Your thoughts...

 

[RobRiggs]

The credit card processing company charges 4% to do the transaction and cover their expenses. The bar owner is just passing that along so it doesn’t come out of his margins. My company does it on transactions over $600.00.

 

[Masmus]

The CA DMV has been doing this for years although they tell you in advance and the bartender should have done the same.

 

[Knows3Chords]

Should be a sign behind the bar.

 

[dankilling]

Without a sign, it’s shady. With a sign, it’s a bad business practice. If the 4% is that bad, then just raise your prices and let the consumer decide if they want to do business with you. Hidden fees suck.

 

[McGoldTopp]

Just like PayPal fees, it is for the convenience of the person receiving the money.

Not my problem.

Same with the gas stations charging two prices for gas, won’t do business with them either.

 

[Danb541]

The credit card processing company charges 4% to do the transaction and cover their expenses. The bar owner is just passing that along so it doesn’t come out of his margins. My company does it on transactions over $600.00.

Yes, I understand the credit card company charges a fee and some businesses do pass the fee to the customer. But I believe they generally have it posted or tell the customer about the fee so they can pay another way or shop elsewhere.
Personally, I would not pass this fee on. I would instead raise my prices X % across the board to cover CC fees.

My main rub here is I wasn't told about it and wonder how many years I'd been paying it.

 

[Buckocaster51]

In my small town, I pay cash money. The owners appreciate it.

 

[Danb541]

Without a sign, it’s shady. With a sign, it’s a bad business practice. If the 4% is that bad, then just raise your prices and let the consumer decide if they want to do business with you. Hidden fees suck.

Totally agree.

 

[cometazzi]

Just like PayPal fees, it is for the convenience of the person receiving the money.

Not my problem.

Same with the gas stations charging two prices for gas, won’t do business with them either.

I always thought that when they went to the "Cash or Credit, Same price!" they just rolled the credit processing fee into the per-gallon price. That way you paid the credit card processing fee whether you used a card or cash.

 

[Peegoo]

It's like some shops or restaurants posting a notice that they don't accept credit card payments for totals under (for example) $10. Although it appears honest, it's illegal per the FTC.

 

[Brent Hutto]

I just hand 'em my card and pay the bill. If the total with all the taxes/fees/whatever ends up seeming too expensive I guess I wouldn't go back there again.

Life's too short to sweat over every 4% of a bar tab or to fumble around with cash, making change, whatever.

 

[Lou Tencodpees]

I think its bad form for places like restaurants to penalize their customers for using a credit card, regardless of the costs involved. I suppose if/when it becomes the norm I'll just keep a wad of cash in my pocket. I personally haven't seen the practice beyond DMVs, annual HOA fees, etc.

 

[Danb541]

I just hand 'em my card and pay the bill. If the total with all the taxes/fees/whatever ends up seeming too expensive I guess I wouldn't go back there again.

Life's too short to sweat over every 4% of a bar tab or to fumble around with cash, making change, whatever.

Yes I get that and do feel the same. I could have brushed it off and kept going there.
I felt deceived though, like I should have been told or it should have been posted. I can afford the 4%. I spent around $3-$4,000 a year at this place. Now my new place gets that money.

 

[Toadtele]

My company charges 3% for credit card transactions. It is a fee to the credit card companies. We do not pocket that.
Our invoices can run between $5000 and $500,000. We always inform our clients and even encourage them to pay by check to avoid the fees. I could not imagine a company that doesn’t inform their customers of this charge. It is unethical. I would not go back.

 

[Knows3Chords]

With all that has happened in the last few years, small business's like private owned bars and restaurants have taken a beating. While I am glad to see them thriving again, I think out front honesty about fees of any kind is just good business. If they tell me up front about the 4% and I like the place, I'll pay it with no problem.

 

[stephent2]

There's a little neighborhood bar my wife and I were going to around once a week for around 5 years. The owner is the bar tender and we got to know him well, became friends even outside of the bar. We haven't been there for over a year, here is why.

Wife and I stopped in on a Thursday evening, had a couple drinks and ate. I got the bill, which is never itemized, I never even bothered to ask for an itemized bill in the past. It was like $64.00 or something and I commented to my wife, that seems kind of high. He heard me and asked if I wanted an itemized bill, I said sure. Well I looked and there was a 4% credit card swipe fee (I was also overcharged but believe that was an honest mistake). This fee rubbed me the wrong way. Nowhere in his bar is it posted he's charging this. To me this felt like theft. I don't plan on going back there again.

If I go to a business, I'm not going to be charged to pay my bill without being told about it.

Am I out of line?

Your thoughts...

My thoughts,.. let's see. So the 4% charge,.. we seem to agree is reasonable for a small business. Then it's the unannounced aspect. And you're suggesting that's more important to you than supporting a local business you seem to enjoy that's owned by someone you call a friend,..

I don't know man. I'd say let it go, it'd be better all the way around.

 

[Intubator]

To me the first issue is not getting an itemized bill. That screams "we're hiding something from you". I have had more than a few unitemized bar/restaurant checks handed to me and I'd say 50% have had overcharges I otherwise would not have known about.

 

[Lonn]

Maybe I’m not understanding here. As far as I know, every business in the world gets charged a fee for allowing credit card use and I imagine either they eat that cost or up their prices to cover it. I have never been told by any business, large or small, that there’s a credit card fee. It’s understood and part of doing business with a card.

 

[loco gringo]

We have a local coffee shop / roaster that has a 3% line item on their receipts for employee benefits. It kind of hacked me off at first, but then I realized that if they had raised their prices by 3%, I would still be in line there to get coffee.

I think they are presenting it to show customers that they pay benefits, maybe? Anyway, the coffee is worth it.