Credit Card Transaction Fees

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm a business owner and my credit card fees = cost of a full time employee.

what were you doing before? It is cost of doing business. I am also a business owner but this is costing me customers.

Folks can use Revolut or any of the million debit swipe cards out there, hand checks, pay cash, or even run a tab.

I worked at a big company in Manhattan. The car service, pizza places, lunch places we did business with a lot monthly billed us via AP. Even hotel by office did it this way. No need for cards. Business liked it and my company liked it as less drama.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Isn't that a good thing? I'd rather be allowed to pay less by check than have them raise the price for everyone to subsume the fee.

Checks are barbaric relics. This country is so primitive when it comes to payment systems. Everywhere else in the world now you can tap seemlessly and the costs to businesses are negligible.

this may suprise you but wires only happen during banking hours and Zelle, paypal have limits and dont happen instantly.

For instance during Financial Crisis Bank of Tokyo had to invest 9 billion into Morgan Stanley on a day banks were closed and after hours in order to do press release and have deal done before stock market opened in morning.

A check has zero limits. You could write a check for one Trillion. Check Kiting is a serious crime. When you write a check you are stating the funds are in account or subject to criminal penalties. A check clears in real time with no dollar limit.

So when Bank of Tokyo wrote physical check for 8 billion, signed by officers of bank, handed it to Morgan Stanley and they sign paper contract the deal was done. No computer needed, no bank, no wire.

When I worked in Manhattan back in the 1980s there was a Rolls Royce dealership in Midtown. The Rich would walk in on a Saturday, write a check for $180,000 hand it to dealer, drive away. At end of day you took checks, added up wrote deposit slip and banks had secure drops to drop off check same day. Chemical Bank for instance had these drops

40 years later Zell, wires can compete. It is the limits on the transactions and lack of real time closing.

I like to see you at 2am on Sunday on a three day weekend try to instanteous transfer 8 billion in 2026. Still cant be done.

I work in finance, so it doesn't surprise me.

I am talking about domestic transactions. I don't need to transfer 8 billion in my private life. In the UK, where I am from, I can send money to anyone's account instantly and for free, 24/7. The faster payments system doesn't not require wire transfers or third-party apps. The US system is barbaric, primitive, and expensive.

[Anonymous]

It's a PR play by the businesses. The fees have always been there, and the businesses have priced them in, but now they can break them out so they can keep their posted prices lower and blame the banks/card networks for the add-on.

[Anonymous]

Anonymous wrote:Are people seeing more credit card transaction fees being passed on to the consumer by businesses? Normally this was part of the cost of business, but lately more restaurants and businesses are charging the consumer 3% if you opt to pay with a credit card. I don’t normally carry a lot of cash on me, but credit card fees are starting to add up.

When it first started up consumers just shrugged and paid it. There was no pushback so more businesses took advantage of that. Now it’s pretty common and I don’t think there’s ever going back.

Personally, if I have the time to research a restaurant or a business before hand, I will not patronize if they charge a credit card fee.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Are people seeing more credit card transaction fees being passed on to the consumer by businesses? Normally this was part of the cost of business, but lately more restaurants and businesses are charging the consumer 3% if you opt to pay with a credit card. I don’t normally carry a lot of cash on me, but credit card fees are starting to add up.

When it first started up consumers just shrugged and paid it. There was no pushback so more businesses took advantage of that. Now it’s pretty common and I don’t think there’s ever going back.

Personally, if I have the time to research a restaurant or a business before hand, I will not patronize if they charge a credit card fee.

Yep, if they want to lose my business by sneaking in the fee when local competitors don't, well I vote with my wallet. This really only applies to businesses who added the fee on when they thought they could get away with it vs. certain companies where it was always expected (eg. utilities/certain home services)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Isn't that a good thing? I'd rather be allowed to pay less by check than have them raise the price for everyone to subsume the fee.

Checks are barbaric relics. This country is so primitive when it comes to payment systems. Everywhere else in the world now you can tap seemlessly and the costs to businesses are negligible.

this may suprise you but wires only happen during banking hours and Zelle, paypal have limits and dont happen instantly.

For instance during Financial Crisis Bank of Tokyo had to invest 9 billion into Morgan Stanley on a day banks were closed and after hours in order to do press release and have deal done before stock market opened in morning.

A check has zero limits. You could write a check for one Trillion. Check Kiting is a serious crime. When you write a check you are stating the funds are in account or subject to criminal penalties. A check clears in real time with no dollar limit.

So when Bank of Tokyo wrote physical check for 8 billion, signed by officers of bank, handed it to Morgan Stanley and they sign paper contract the deal was done. No computer needed, no bank, no wire.

When I worked in Manhattan back in the 1980s there was a Rolls Royce dealership in Midtown. The Rich would walk in on a Saturday, write a check for $180,000 hand it to dealer, drive away. At end of day you took checks, added up wrote deposit slip and banks had secure drops to drop off check same day. Chemical Bank for instance had these drops

40 years later Zell, wires can compete. It is the limits on the transactions and lack of real time closing.

I like to see you at 2am on Sunday on a three day weekend try to instanteous transfer 8 billion in 2026. Still cant be done.

I work in finance, so it doesn't surprise me.

I am talking about domestic transactions. I don't need to transfer 8 billion in my private life. In the UK, where I am from, I can send money to anyone's account instantly and for free, 24/7. The faster payments system doesn't not require wire transfers or third-party apps. The US system is barbaric, primitive, and expensive.

I worked at Revolut 3 years and we built it to kill European Banks and got huge market share. In the USA we barely made a dent. Why it was trying to solve a problem that really did not exist. Sure It is great. But my kids have Bank of America and Chase accounts and also use Marcus bank for high yeld savings and CDs and Robinhood to buy and sell stocks. Or some people use Chime. None of them every opened a Revolut account as they all said it sounds like stuff we already have. But in Europe it was groundbreaking. Heck we signed up 1/3 of the Irish Population in a short period of time.

[Anonymous]

Anonymous wrote:It's a PR play by the businesses. The fees have always been there, and the businesses have priced them in, but now they can break them out so they can keep their posted prices lower and blame the banks/card networks for the add-on.

1. The fees have gone up over time, specifically for premium cards which now make up majority of spend.
2. Per the old credit card issuer terms, they couldn't break out the fees or charge a markup. The SCOTUS ruling in 2017 outlawed that restriction, so things have been slowly shifting since then.

[Anonymous]

If you’re mailing a check, mail it from inside a post office.

[Anonymous]

Anonymous wrote:If you’re mailing a check, mail it from inside a post office.

saving 1-2% but then losing thousands from a fraudulent check washing scheme Sometimes it's best to just play along and this goes for the business owners too. You end up missing on a high value long term customer because you imposed a CC fee.

[Anonymous]

The mechanic shop just hit me with that 3% crap if paying via credit card.

Are businesses required to inform you? Or can they just just add the fee without telling you? In Florida (anything goes there) they probably can, but I doubt that's the case in Maryland.

[Anonymous]

Anonymous wrote:The mechanic shop just hit me with that 3% crap if paying via credit card.

Are businesses required to inform you? Or can they just just add the fee without telling you? In Florida (anything goes there) they probably can, but I doubt that's the case in Maryland.

They absolutely have to inform you of any fees before you pay.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Isn't that a good thing? I'd rather be allowed to pay less by check than have them raise the price for everyone to subsume the fee.

Checks are barbaric relics. This country is so primitive when it comes to payment systems. Everywhere else in the world now you can tap seemlessly and the costs to businesses are negligible.

this may suprise you but wires only happen during banking hours and Zelle, paypal have limits and dont happen instantly.

For instance during Financial Crisis Bank of Tokyo had to invest 9 billion into Morgan Stanley on a day banks were closed and after hours in order to do press release and have deal done before stock market opened in morning.

A check has zero limits. You could write a check for one Trillion. Check Kiting is a serious crime. When you write a check you are stating the funds are in account or subject to criminal penalties. A check clears in real time with no dollar limit.

So when Bank of Tokyo wrote physical check for 8 billion, signed by officers of bank, handed it to Morgan Stanley and they sign paper contract the deal was done. No computer needed, no bank, no wire.

When I worked in Manhattan back in the 1980s there was a Rolls Royce dealership in Midtown. The Rich would walk in on a Saturday, write a check for $180,000 hand it to dealer, drive away. At end of day you took checks, added up wrote deposit slip and banks had secure drops to drop off check same day. Chemical Bank for instance had these drops

40 years later Zell, wires can compete. It is the limits on the transactions and lack of real time closing.

I like to see you at 2am on Sunday on a three day weekend try to instanteous transfer 8 billion in 2026. Still cant be done.

I work in finance, so it doesn't surprise me.

I am talking about domestic transactions. I don't need to transfer 8 billion in my private life. In the UK, where I am from, I can send money to anyone's account instantly and for free, 24/7. The faster payments system doesn't not require wire transfers or third-party apps. The US system is barbaric, primitive, and expensive.

I worked at Revolut 3 years and we built it to kill European Banks and got huge market share. In the USA we barely made a dent. Why it was trying to solve a problem that really did not exist. Sure It is great. But my kids have Bank of America and Chase accounts and also use Marcus bank for high yeld savings and CDs and Robinhood to buy and sell stocks. Or some people use Chime. None of them every opened a Revolut account as they all said it sounds like stuff we already have. But in Europe it was groundbreaking. Heck we signed up 1/3 of the Irish Population in a short period of time.

Because Europe has so many countries and each country may have just a few banks to choose from = room for competition that Revolut provided. In the US, there are 10,000 banks to pick from, from credit unions to local banks to the big guys.

(I do have a Revolut account, great for dealing with my friends in Europe)