Fee For Credit Card Usage

bfgun

Just renewed my house insurance.

Yet another company that wants to charge me for using my CC.

Do you agree that this is unacceptable or not?

When companies agree to offer CC as a method of payment they know what the charges are so it is right that they should pass it on to the consumer?

dzug1

Just who else could they possibly pass the cost on to?

And looking at it another way, would it be right that their customers who didn't use a credit card should subsidise those who did?

dduk

Does it really cost the extra that they charge though compared to DD though? Or are they using it as an excuse to make a profit too?

dzug1 wrote: »

Just who else could they possibly pass the cost on to?

And looking at it another way, would it be right that their customers who didn't use a credit card should subsidise those who did?

Look at it this way, what about supermarkets, do you think it's right that the costs associated with taking cash and card payments are combined and included, or should there be separate fees so that one isnt subsidising the other...

opinions4u

I dislike credit card surcharges in all forms.

It makes me less likely to use the company charging them.

Is it legal? Yes.

Is it fair? Probably.

Is it good sense for a firm to levy them? I suspect not. It simply irritates half their customers.

dzug1

dduk wrote: »

Does it really cost the extra that they charge though compared to DD though? Or are they using it as an excuse to make a profit too?...

I don't know. How much extra do they charge? How much extra does it cost them?

Look at it this way, what about supermarkets, do you think it's right that the costs associated with taking cash and card payments are combined and included, or should there be separate fees so that one isnt subsidising the other...

It's neither right nor wrong. If separate fees reduced prices to those customers who use cheaper methods of payment then it's arguably better. I don't say I'd welcome it but it could be 'fairer', whatever that means.

bfgun

dzug1 wrote: »

Just who else could they possibly pass the cost on to?

And looking at it another way, would it be right that their customers who didn't use a credit card should subsidise those who did?

But customers never used to be penalized for paying by credit card.

Why is it all the rage to do so now?

dzug1

bfgun wrote: »

But customers never used to be penalized for paying by credit card.

Why is it all the rage now to do so?

Oversimplified but:

At one time the CC company contract with the retailers forbade differential prices

Then along came the monopolies commission (or some similar body - can't remember precisely which one) who said this is a restrictive practice it's not allowed - so companies became free to charge if they wished

And as competition generally has squeezed company margins, more companies have considered a surcharge as a way of maintaining their revenue. In the case of airlines, advertising rules come into it as well.

Even more oversimplified:

competition

david39

Do you really think that the companies who don't charge for credit card processing actually pay it themselves ?

They just adjust their prices so that their credit card costs are included in the overheads of running the business and pass it on as a business cost, like staff wages, in the price they charge to all their customers.

At least, with the ones who charge, you have the option to decline buying with a credit card and use the cheaper option of a debit card instead.

CLAPTON

bfgun wrote: »

But customers never used to be penalized for paying by credit card.

Why is it all the rage to do so now?

Fees have been common for years for certain types of transactions.

However it was less common previously because often companies simply refused to accept credit cards atall.

bfgun

david39 wrote: »

Do you really think that the companies who don't charge for credit card processing actually pay it themselves ?

They just adjust their prices so that their credit card costs are included in the overheads of running the business and pass it on as a business cost, like staff wages, in the price they charge to all their customers.

At least, with the ones who charge, you have the option to decline buying with a credit card and use the cheaper option of a debit card instead.

I would actually prefer it that way. At least I know exactly what I'm paying from the outset as opposed to then being told of the CC charge as I produce my card.

Ben8282

dzug1 wrote: »

Oversimplified but:

At one time the CC company contract with the retailers forbade differential prices

Then along came the monopolies commission (or some similar body - can't remember precisely which one) who said this is a restrictive practice it's not allowed - so companies became free to charge if they wished

And as competition generally has squeezed company margins, more companies have considered a surcharge as a way of maintaining their revenue. In the case of airlines, advertising rules come into it as well.

Even more oversimplified:

competition

I believe that cc surcharges are wrong in principal and that the old rules need to be brought back ..... and the old rules need to be brought back in respect of a lot of other things as well!