Credit Card Fees passed through from merchant

[Anonymous]

I get that the merchant faces processing fees and prefers a check. When I can, I write a check. I still have checks.
But how do they justify charging as a PERCENT? It should be a flat transaction fee! So the more I spend, the more it costs them to process my credit card? We tried to buy online tickets for a charity gala, and of course they don't want credit card fees to offset their fundraising, but as we clicked up to "platinum table tickets" or whatever, the fees for the tickets went up to like $250! Guess who didn't buy charity tickets.

[Anonymous]

Credit card fees for vendors usually include a flat fee and a percentage of the sale.

[Anonymous]

American Express Credit cards are 3.03% + $0.10 per transaction.

Visa and Master Card like 1.5% to 2.% on average. Plus a transaction fee

All colleges my kids attended passed on full cost if you wanted to use a credit Card. My kids school is costing me $60,000 this Fall. If I swipe with Amex that is a a $1,800.10 charge to college and Visa is $1,200.10 charge to college.

Why people want ACH, Debit, Check, Cash, Zelle for payment

[Anonymous]

I hate it too.
My kids school charges 3% for using a credit OR debit card for everything. It’s free if we use bank account.

[Anonymous]

Honda service in Bethesda also charges 3% if you use a credit card to pay.

[Anonymous]

Anonymous wrote:I hate it too.
My kids school charges 3% for using a credit OR debit card for everything. It’s free if we use bank account.

That's their business model. Be glad it's "only" 3%. In some smaller countries, I've seen Visa/MC charge 4%+which gets passed through to customers by merchants. And that's why many countries are dumping credit cards for QR and other instant payments etc.

[Anonymous]

Anonymous wrote:Credit card fees for vendors usually include a flat fee and a percentage of the sale.

This. They are only passing on the fee that they pay. Your issue is with the credit card companies, not the vendor.

[Anonymous]

I thought in some countries, like Iceland, the fees for credit card use are actually lower.

[Anonymous]

Anonymous wrote:I thought in some countries, like Iceland, the fees for credit card use are actually lower.

Yes, the EU and Australia, in particular, cap the interchange fees significantly. The credit card business model is very different in those places as a result, and very few cards have significant rewards programs, there is much less marketing, and more cards have annual fees.

[Anonymous]

Anonymous wrote:I get that the merchant faces processing fees and prefers a check. When I can, I write a check. I still have checks.
But how do they justify charging as a PERCENT? It should be a flat transaction fee! So the more I spend, the more it costs them to process my credit card? We tried to buy online tickets for a charity gala, and of course they don't want credit card fees to offset their fundraising, but as we clicked up to "platinum table tickets" or whatever, the fees for the tickets went up to like $250! Guess who didn't buy charity tickets.

How can you be someone who is blowing $$$ on a charity gala but not know credit cards charge a percentage from each merchant??

[Anonymous]

Anonymous wrote:American Express Credit cards are 3.03% + $0.10 per transaction.

Visa and Master Card like 1.5% to 2.% on average. Plus a transaction fee

All colleges my kids attended passed on full cost if you wanted to use a credit Card. My kids school is costing me $60,000 this Fall. If I swipe with Amex that is a a $1,800.10 charge to college and Visa is $1,200.10 charge to college.

Why people want ACH, Debit, Check, Cash, Zelle for payment

I think rewards cards charge a higher percentage too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get that the merchant faces processing fees and prefers a check. When I can, I write a check. I still have checks.
But how do they justify charging as a PERCENT? It should be a flat transaction fee! So the more I spend, the more it costs them to process my credit card? We tried to buy online tickets for a charity gala, and of course they don't want credit card fees to offset their fundraising, but as we clicked up to "platinum table tickets" or whatever, the fees for the tickets went up to like $250! Guess who didn't buy charity tickets.

How can you be someone who is blowing $$$ on a charity gala but not know credit cards charge a percentage from each merchant??

Because it is only very recently that merchants are passing them along to customers.
It defeats the purpose of using credit cards at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Credit card fees for vendors usually include a flat fee and a percentage of the sale.

This. They are only passing on the fee that they pay. Your issue is with the credit card companies, not the vendor.

NP here. But this used to be considered the standard part of doing business as an accounting/admin fee and was not passed on to the customer. The only vendor that did this when I was growing up was the gas station (separate price for cash vs credit). I saw very few vendors doing this precovid (usually very small businesses), but since Covid it has become standard to charge the consumer.

Now there are charges for wire transfers or electronic checks which is insane. I did a recent 6 figure kitchen renovation, and the design/build company wanted 3% for credit card or 2% for wire transfer so I pay every single bill with an old school check. They initially gave me heat over it so I threatened not to sign the contract.

I recently paid for my kid’s travel sport with a check after that club started tacking on this 3% fee with a disclosure in tiny writing that it was for credit card, data security and other admin charges. I refused to pay it. Was like those restaurant fees in DC.

[Anonymous]

Anonymous wrote:I thought in some countries, like Iceland, the fees for credit card use are actually lower.

The rest of the world has a functioning banking system so you can just transfer money instantly from your bank account without using any third party like zelle.

[Anonymous]

Anonymous wrote:Honda service in Bethesda also charges 3% if you use a credit card to pay.

Was coming here to say this! I get them not wanting to eat the cost of credit card fees on a car, but on my 120$ service?