How many restaurants charge a fee to use a debit card? « Columbus Underground Messageboard

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How many restaurants charge a fee to use a debit card?

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Started 3 years ago by agtw31
Latest reply from terioteri

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jarsloth

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Twixlen wrote >>

futureman wrote >>

lifeliberty wrote >>
yeah, the liquor store next to Ravari Room and sage makes you use their ATM which charges a fee every use.

Not sure, but for some reason I thought it was a state law that you can't use credit card to buy hard liquor, unless you are buying it in a grocery store (state licenced of course).

I think it's up to the individual agency/store to determine how they handle credit transactions. I know the Liquor Store near Westland takes credit, but the one up on Henderson near that huge TJ Maxx only accepts cash. And yeah, you can buy all the liquor you want @ Kroger on your card.

I know you can use your credit card for liquor at Europia on High Street, if you have at least 10.00 worth of non-liquor on the sale.

Posted 3 years ago #
DonnaTate

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Companies are charged nearly 1/2% more for accepting debit cards, and sometimes there's a flat fee in addition to the normal percentage they're charged for each purchase made. It's pretty costly for businesses to accept debit cards.
I do think it would be easier for everyone involved if prices were increased to reflect that added cost of our convenience. I see 2 negatives to this though. 1) Now everybody pays more for everything 2) It'd be hard to calculate how much to increase their prices in order to offset this cost, so chances are, they'd be collecting a whole lot more than the 50 cent surcharge.
Personally, I'd rather have prices low and be given the option to choose my payment method, than to be charged more money from the start just to cover someone esle's debit card transaction when I'm paying cash.

Posted 3 years ago #
lifeontwowheels
Highland West
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misskitty wrote >>
This is from the Visa Merchant Agreement

Which begs the question [considering some of the responses] why we see so many doing this? As I said, I have walked into more than one place with a "$5 minimum purchase w/ card", although I think it's been dropping more in favor of cash only. Is there a downside for a small business owner to take plastic?

I don't think it's so much a malicious act on the merchant's part as it is trying to find a way to cover costs and keep things going.

Posted 3 years ago #
Roland
Clintonville
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Sounds like everyone is happier when they don't realize they are being charged 50 cents for credit card/debit transactions. If the 50 cent charge is made OPTIONAL and can be avoided by not using a card, that would be a good thing for customers!

Unfortunately for merchants, VISA (etc) agreements disallow the practice.

Personally, I don't have a problem with anyone giving a discount for cash transactions. I'd still visit this place.

Posted 3 years ago #
berdawn
near that stretch of N. High Street in the Short North
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agtw31 wrote >>
it was run as credit,and i did sign.
i just don't get it.
as far as i am concerned,a business has 2 simple frigging choices:
eat the processing fee off of a $20 transaction,or have no transaction at all.
it's back to waffle house for breakfast for me

AFAIK, Waffle House is cash only.

Posted 3 years ago #
Twixlen
The Weston District
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lifeontwowheels wrote >>

misskitty wrote >>
This is from the Visa Merchant Agreement

Which begs the question [considering some of the responses] why we see so many doing this? As I said, I have walked into more than one place with a "$5 minimum purchase w/ card", although I think it's been dropping more in favor of cash only. Is there a downside for a small business owner to take plastic?
I don't think it's so much a malicious act on the merchant's part as it is trying to find a way to cover costs and keep things going.

A small business I worked for had the general practice of giving a 3% discount for cash transactions. We had the credit set up, and if I'm remembering correctly, the percentage they took was determined by our monthly volume.

Sure, it benefited us to have the ability to take cards, but there were some (sometimes) hefty fees associated with it. This was a while ago, and it may be much less expensive now, since it's that much more common.

I'm guessing that the folks with the "Must spend X for credit transaction" signs are charged a flat rate per transaction - and they are trying to (apparently wrongly) manage that cost.

Also. UDF gas pumps require zip codes for credit transactions - shame, shame!

Posted 3 years ago #
JonMyers
HCMC, Vietnam ✈
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jarsloth wrote >>

Twixlen wrote >>

futureman wrote >>

lifeliberty wrote >>
yeah, the liquor store next to Ravari Room and sage makes you use their ATM which charges a fee every use.

Not sure, but for some reason I thought it was a state law that you can't use credit card to buy hard liquor, unless you are buying it in a grocery store (state licenced of course).

I think it's up to the individual agency/store to determine how they handle credit transactions. I know the Liquor Store near Westland takes credit, but the one up on Henderson near that huge TJ Maxx only accepts cash. And yeah, you can buy all the liquor you want @ Kroger on your card.

I know you can use your credit card for liquor at Europia on High Street, if you have at least 10.00 worth of non-liquor on the sale.

Yep, I live across the street, bank at Chase and still find the process a total pain in the ass.

Thus, I haven't purchased liquor at Europia in 6 months. I used to purchase 2 - 3 times a month. I bet I'm not alone.

Posted 3 years ago #
Roland
Clintonville
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Twixlen wrote >>
Also. UDF gas pumps require zip codes for credit transactions - shame, shame!

I don't trust those filthy gas pumps with my zip code information!

Posted 3 years ago #
Twixlen
The Weston District
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Roland wrote >>

Twixlen wrote >>
Also. UDF gas pumps require zip codes for credit transactions - shame, shame!

I don't trust those filthy gas pumps with my zip code information!

*looks furtively around

They are always watching!

Posted 3 years ago #
Tigertree
771 N. High St.
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Credit cards are a cost of doing business. I am completely alright with companies who offer a discount for cash purchases. And whoever posted was right, in many cases charges or imposed minimums are illegal.

Posted 3 years ago #
futureman
Grandview Heights
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JonMyers wrote >>

jarsloth wrote >>

Twixlen wrote >>

futureman wrote >>

lifeliberty wrote >>
yeah, the liquor store next to Ravari Room and sage makes you use their ATM which charges a fee every use.

Not sure, but for some reason I thought it was a state law that you can't use credit card to buy hard liquor, unless you are buying it in a grocery store (state licenced of course).

I think it's up to the individual agency/store to determine how they handle credit transactions. I know the Liquor Store near Westland takes credit, but the one up on Henderson near that huge TJ Maxx only accepts cash. And yeah, you can buy all the liquor you want @ Kroger on your card.

I know you can use your credit card for liquor at Europia on High Street, if you have at least 10.00 worth of non-liquor on the sale.

Yep, I live across the street, bank at Chase and still find the process a total pain in the ass.
Thus, I haven't purchased liquor at Europia in 6 months. I used to purchase 2 - 3 times a month. I bet I'm not alone.

So after a quick look around, a possible reason why credit cards are often not accepted at liquor stores are that margins are very low due to regulations on hard liquor. By not accepting any credit cards they are not in violation of the merchant agreements.

... But with Europia, I think that would be violation though. Very strange!

Posted 3 years ago #
Twixlen
The Weston District
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@ futureman --- And that makes sense as to why a place like Kroger or the liquor store near Westland (it's almost like a convenience store + liquor) can afford to take the cards.

Good catch.

Posted 3 years ago #
Tigertree
771 N. High St.
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@futureman, yes, I should have mentioned that... I don't have an issue with liquor or wine shops that do not accept credit. I know it is an inconvenience but the complaint should be with the state relaxing liquor regulation and not with the merchant. Those are some hard margins to make a buck on.

Posted 3 years ago #
misskitty
Columbus
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lifeontwowheels wrote >>

misskitty wrote >>
This is from the Visa Merchant Agreement

Which begs the question [considering some of the responses] why we see so many doing this? As I said, I have walked into more than one place with a "$5 minimum purchase w/ card", although I think it's been dropping more in favor of cash only. Is there a downside for a small business owner to take plastic?
I don't think it's so much a malicious act on the merchant's part as it is trying to find a way to cover costs and keep things going.

I will note that most of the places that try to impose minimums and or a charge are from my experience small places. I donÃ¢â‚¬â„¢t see this practice at places like Kroger, Super Americas, McDonalds. So they donÃ¢â‚¬â„¢t mind paying and playing by the books I guess. I actually never realized that the practice of minimums and charges was against the merchant agreement until I read that. I suppose there is nothing you can do unless you want to point out to the retailer that what they are doing is a violation of their agreement. If someone wants to do so It is in their right to bring it up I guess.

Posted 3 years ago #
lifeontwowheels
Highland West
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misskitty wrote >>

lifeontwowheels wrote >>

misskitty wrote >>
This is from the Visa Merchant Agreement

Which begs the question [considering some of the responses] why we see so many doing this? As I said, I have walked into more than one place with a "$5 minimum purchase w/ card", although I think it's been dropping more in favor of cash only. Is there a downside for a small business owner to take plastic?
I don't think it's so much a malicious act on the merchant's part as it is trying to find a way to cover costs and keep things going.

I will note that most of the places that try to impose minimums and or a charge are from my experience small places. I donÃ¢â‚¬â„¢t see this practice at places like Kroger, Super Americas, McDonalds. So they donÃ¢â‚¬â„¢t mind paying and playing by the books I guess. I actually never realized that the practice of minimums and charges was against the merchant agreement until I read that. I suppose there is nothing you can do unless you want to point out to the retailer that what they are doing is a violation of their agreement. If someone wants to do so It is in their right to bring it up I guess.

And I am all for a merchant playing by the books, full disclosure etc.

I'm just wondering if there is a particular reason (ie. high fees, reserve accounts, equipment leases) that are forcing a merchant to go that route and if there is a common reason(s) for it, what could be done to make the playing field a bit more level.

Posted 3 years ago #
JonMyers
HCMC, Vietnam ✈
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I know for a fact, myself and many others I know very rarely visit Europia as a result of the change in their credit card policy.

Posted 3 years ago #
Tenzo
Chicago Lakeshore
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It's the adding the charge on the back end, without telling you before, so that you can make an informed decision.

I see this the same as that place that hed a happy hour card that said 1/2 off. Then when the bill came they renigged.

Personally, I'd give the waitress her tip in cash.
Then call the manager over and explain to him why I am filling out the credit card slip for 50 cents less than he charged me.

Posted 3 years ago #
Anne
King Lincoln
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on a related note: Huntington Bank charges you .25 cents every time you want to run your card as a debit, at least on the free checking account. Annoying. One of the reasons I got rid of that account. I don't think I should have to pay a piddly fee to the bank to use my own money.

Posted 3 years ago #
manticore33
Delaware, OH
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Banks want you to use the debit card like a credit card because it generates more fee revenue for them opposed to a pin-based purchase.

Merchants pay the price to keep up on competition. Unfortunately, as a consumer, I've become quite spoiled at having access to my funds through plastic. There have been times I left a place of business because of not having the cash and not knowing where a free ATM is located.

From a small business perspective, I do not know if this opportunity cost is worth it or not. As an out-of-towner, it is very annoying to find out the place I want shop only takes cash and I did not plan for it. If I plan for it ahead of time, and I know basic pricing, it matters much less to me.

Furthermore, is it really appropriate of a business to groom a customer's purchasing habits? I thought the business depended on me to make money. Not offloading costs to me for doing business with them.

Posted 3 years ago #
Bear
The woods
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fwiw, I think Europia takes credit/debit for the whole purchase if you buy something else along with the liquor... even if that something is a trivial percentage of the overall cost.

Posted 3 years ago #