Hotel - 3% surcharge on credit cards

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:CC companies generally charge the business 3%. Small businesses (especially Mom & Pop type) have always passed that 3% along to the customer. If hotels are now doing it, they are increasing their revenue by 3% by no longer paying the fee themselves.

This hardly seems legal in that a hotel bill can easily be in the 1000s. Who carries that kind of cash around, or leaves in their room when not out and about.

It's legal in most states for merchants to pass along credit card fees to their customers. 3% is not small--that's why you see smaller vendors moving to Square, Stripe etc...and in other countries there are QR codes that debit your bank account which are much much cheaper to transact with.

Stripe and Square charge the same fee as credit card processors for credit cards. Sit and think on that until you figure out why.

The PP was alluding to ACH payments.

[Anonymous]

Anonymous wrote:legally most states can only charge this on use of a credit card, if you pick DEBIT to check out legally they're not allowed to charge that fee however no one seems to be enforcing this law.

I’ll bet a lot of places are not processing the debit card as DEBIT but using it as a CREDIT CARD transaction (ie if you enter a PIN you are using the debit system, if you swipe and go it’s CREDIT).

You have more protections from credit transactions and honestly if my credit card is hacked I just delete transactions. If my bank account or debit card is hacked, it’s a total PITA because my cash is gone until investigated.

I get 2% cash back, so a 1% fee for those protections I can swallow. Maybe we will see reward cards fade and fees can go down to match, and just have a simpler world

[Anonymous]

I carry cash in case I run into a business like this, then I do indeed pay cash. The other day, it was a restaurant in McLean with our whole family + grandparents, and both my father and I carry cash. We paid the $300+ bill all in cash. Not sure they expected people to pay in cash, but now it's their problem to get this cash transported to the bank and hope it doesn't "disappear" somewhere along the way.

[Anonymous]

Use your Chase, Bank of America, Revolut Card. I can instantly move funds my account to their account no fees on either side. It just moves it account to account

For instance Aer Lingus has the Revolut Card as a pay option. I have taken taxis in Europe that are cash only and paid via Revolut. moves my account to their account in an instant.

[Anonymous]

There was a whole thread on this in Money recently- not sure if it was resolved there either:
https://www.dcurbanmom.com/jforum/posts/list/1264050.page

[Anonymous]

Anonymous wrote:I carry cash in case I run into a business like this, then I do indeed pay cash. The other day, it was a restaurant in McLean with our whole family + grandparents, and both my father and I carry cash. We paid the $300+ bill all in cash. Not sure they expected people to pay in cash, but now it's their problem to get this cash transported to the bank and hope it doesn't "disappear" somewhere along the way.

Sounds like a very cheap restaurant! What's the name? We spend that with just the two of us

[Anonymous]

My hairdresser claims MC/Visa would charge me the fee; ridiculous because everyone knows it would charge her. Nevertheless I dutifully bring a check every time I go.

[Anonymous]

Anonymous wrote:I’m staying at a hotel that has this sign at check in:
“A 3% surcharge will apply to all credit / debit card payments. This fee does not apply to cash payments.”

Is this really a thing now? Paying cash at a hotel feels so shady.

Well yeah, always has been a thing for CC's, because that's a major way banks make money off CC's is the merchant fees they have to pay.

It's often worded differently like "X price, but X discount if you pay cash", which sounds better but is same thing.

[Anonymous]

Anonymous wrote:I’m staying at a hotel that has this sign at check in:
“A 3% surcharge will apply to all credit / debit card payments. This fee does not apply to cash payments.”

Is this really a thing now? Paying cash at a hotel feels so shady.

That explains the $3k in Kristy Noem’s purse. 😂

[Anonymous]

I have not encountered this at a hotel, but for sure at mom and pop restaurants and places like barbers. Which, fine. But hotels are often $1000 plus charges, which are not convenient for carrying cash. It feels like that is an undisclosed excess charge and that would annoy me. And I'm petty. If I had the time and was in a bad mood, I'd be inclined to go to the bank and pay in loose change. Wheelbarrows of nickels. And whatever brand of hotel this is, I would not revisit. I really hate when companies are not upfront about the cost even if it's only 3 percent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m staying at a hotel that has this sign at check in:
“A 3% surcharge will apply to all credit / debit card payments. This fee does not apply to cash payments.”

Is this really a thing now? Paying cash at a hotel feels so shady.

Well yeah, always has been a thing for CC's, because that's a major way banks make money off CC's is the merchant fees they have to pay.

It's often worded differently like "X price, but X discount if you pay cash", which sounds better but is same thing.

True but some businesses do that to evade taxes since it’s easier to hide cash income.

[Anonymous]

Anonymous wrote:I have not encountered this at a hotel, but for sure at mom and pop restaurants and places like barbers. Which, fine. But hotels are often $1000 plus charges, which are not convenient for carrying cash. It feels like that is an undisclosed excess charge and that would annoy me. And I'm petty. If I had the time and was in a bad mood, I'd be inclined to go to the bank and pay in loose change. Wheelbarrows of nickels. And whatever brand of hotel this is, I would not revisit. I really hate when companies are not upfront about the cost even if it's only 3 percent.

High five! It's just passing the cost of using a credit card to us. The convenience of a credit card is how they attract and keep consumers. And then to ask for a CC anyway for their own protection? That's a steaming pile of BS right there.

[Anonymous]

I saw this at a courtyard Marriott in TX. It was a business trip paid for by my employer, so I didn’t care. But the new post-covid trend is definitely for companies to add new fees.