New Credit Card Charges?

[Jeremy Hoag]

Hello, I think this is my first successful post on this site (assuming). I stopped into the Shamrock on Madison for dinner this evening, an infrequent haunt of mine for a fairly cheap and good meal, and they're charging $2 on top of any credit card charge these days. Last time I stopped in there (and used a debit card, as I usually will, given that my own cash influx is nihl), about two weeks ago, there was no such charge.

What's more, I work for a restaurant and I'm more involved than I'd like with processing our receipts. It's hard to believe my boss would not be screaming my ear off if there had been such a significant change in credit card processing that it necessitated $2 on a $50 charge, much less $2 on a $10 charge.

If anyone has a reasonable explanation for why such a charge would appear, I'd love to hear it, but if it's just politically-inspired paranoia, this place has lost my business.

[David Lay]

Some establishments see fit to add a 'fee' to any credit card charge to make up for the merchant fees. Most of the merchant agreements forbid this, as well as requiring a minimum purchase. This article from Consumerist may help you:

http://consumerist.com/333160/how-to-re ... ou-show-id

Reporting is a double-edged sword, however. Beverage Square refused to accept credit cards for a period of time after someone reported them for requiring a $10 minimum purchase.

I'm all for supporting local business, but this practice is becoming more and more prevalent.

[Jim O'Bryan]

Hello, I think this is my first successful post on this site (assuming). I stopped into the Shamrock on Madison for dinner this evening, an infrequent haunt of mine for a fairly cheap and good meal, and they're charging $2 on top of any credit card charge these days. Last time I stopped in there (and used a debit card, as I usually will, given that my own cash influx is nihl), about two weeks ago, there was no such charge.

What's more, I work for a restaurant and I'm more involved than I'd like with processing our receipts. It's hard to believe my boss would not be screaming my ear off if there had been such a significant change in credit card processing that it necessitated $2 on a $50 charge, much less $2 on a $10 charge.

If anyone has a reasonable explanation for why such a charge would appear, I'd love to hear it, but if it's just politically-inspired paranoia, this place has lost my business.

Jeremy

Congratulations on your first post, I hope it is followed by many more.

My question to you was did you sign a receipt?

To my knowledge all credit card companies charge more for a credit card that is not
swiped. This would be a business that uses a paypal account, or other online system
rather than the hard wired system most businesses use.

Shamrock is a great place to grab food at a very reasonable level, I would hate to think of
them losing any business, as they are really working hard to make it better for everyone.
They have a great patio, and a pretty good burger.

I am noticing that more and more food establishments are going to cash only.

Thanks again for jumping into the Mosh Pit of word Jazz called the Observation Deck.


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[David Lay]

I am noticing that more and more food establishments are going to cash only.

I've noticed that too. Considering that more and more people are debit-card only and hardly carry any cash (myself included), this could be a potential death sentence for any business.

[Jim O'Bryan]

I am noticing that more and more food establishments are going to cash only.

I've noticed that too. Considering that more and more people are debit-card only and hardly carry any cash (myself included), this could be a potential death sentence for any business.

David

You might think that, and I am sure some turn away. But the places I know that have
gone cash only are thriving and growing. I would say that they have not even passed
the savings on to the consumers. Most that I can think of are food establishments,
that generally have waits to get in the door.

Of course CASH ONLY is what is on the door to the infamous and thriving underground
economy. Maybe that is why they are doing so well. I can remember where gas stations
would give cash discounts for not using credit cards. I know that some of the "bargain
down" groups use cash as a bargaining chip to get a couple percent off large purchases.

It might become a movement not a liability. I know I am paying more and more with cash.

FWIW


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[David Lay]

Of course CASH ONLY is what is on the door to the infamous and thriving underground economy. Maybe that is why they are doing so well. I can remember where gas stations
would give cash discounts for not using credit cards. I know that some of the "bargain down" groups use cash as a bargaining chip to get a couple percent off large purchases.

I've noticed this as well. Kum & Go (gas/convenience chain based in Iowa) offers a cash discount (usually 2-3 cents/gallon, sometimes more). A lot of other gas stations in Iowa also have this practice.

[Ed Dickson]

The practice of adding an additional fee to cover merchant fees is against all credit card rules. I know this from my own business merchant account and my wife and I just went through it with the daycare we use. They have ways to get around breaking the rule but to do it as stated above is a direct violation of credit card rules. (It's a MC and Visa rule, not an individual merchant rule.)

[Jerry Ritcey]

Like the Consumerist article linked above says, this money is going to the card companies and banks, and drains a little profit off every transaction for the merchants. Using cash may be a workaround for this. After one of my credit cards showed some fraudulent charges, I stopped using cards at all at one area restaurant. I know it was there because it was a card used for nothing but that restaurant in months.

[Jeremy Hoag]

Thank you for the replies.

I understand the rationale behind minimum purchases and small fees to cover the transaction--it's nothing new, and I don't hold it against business owners even if it is a violation--but two bucks? If she wanted to set a ten dollar minimum (my tab came in just under), I would have been happy to buy another beer, but instead she lost my business. Of course, what a smart business does (and credit card regulations require) is build the cost into their pricing.

What I'm wondering is whether there actually has been any recent change in the law, as she suggested. It had better be nigh-apocalyptic to make a $2 charge on a $10 check (or $20 or $40) even begin to make sense.

[Danielle Masters]

Interesting how people feel about cash only places. I am so scatterbrained and I never carry cash so cash only places are a no go for me.

As for a $2 charge that seems really excessive and had I been charged that sort of a fee that would have been my last visit to that establishment also.

[Jeremy Hoag]

Interesting how people feel about cash only places. I am so scatterbrained and I never carry cash so cash only places are a no go for me.

For better or worse, it's often the same with me. I'd like to support local businesses by buying with cash, and Lakewood in particular has some great cash-and-carry restaurants, but 9 times out of 10 if it means a trip to the ATM, I'll skip it. Thai Kitchen and La Pita Express would see a lot more of me if they took plastic.

[David Lay]

Interesting how people feel about cash only places. I am so scatterbrained and I never carry cash so cash only places are a no go for me.

For better or worse, it's often the same with me. I'd like to support local businesses by buying with cash, and Lakewood in particular has some great cash-and-carry restaurants, but 9 times out of 10 if it means a trip to the ATM, I'll skip it. Thai Kitchen and La Pita Express would see a lot more of me if they took plastic.

I agree, but if a business signs the Merchant Agreement, knowing that it's a violation of said agreement to charge minimums or additional fees, that's just predatory and not customer-friendly. If they need to recoup some of that cost, just factor it into the prices.

Maybe they need to read this book: http://amzn.com/1401301436

[Danielle Masters]

For better or worse, it's often the same with me. I'd like to support local businesses by buying with cash, and Lakewood in particular has some great cash-and-carry restaurants, but 9 times out of 10 if it means a trip to the ATM, I'll skip it. Thai Kitchen and La Pita Express would see a lot more of me if they took plastic.

I have to agree about La Pita, I wish they took cards, I would be willing to pay a little more, as in add the cost into the price of the food. As it is whenever I think to go to La Pita lately we either don't have any cash on us or it is past 8 pm. It's rather unfortunate.

[Jeremy Hoag]

I think I found the article that freaked out the folks over at Shamrock, from this past Sunday's Plain Dealer, originally in the NYTimes: http://www.cleveland.com/business/plain ... xml&coll=2

News induced hysteria I'm thinking they anticipate their fees going up in response to the new consumer protections. I sympathize, but they're not doing themselves any favors going nuts about it. I just paid off $90 worth of their processing fees on a $10 order, but they're not going to see another dime from me for quite some time.

BTW, Jim, they do swipe cards in a standard reader, so they're not using PayPal or anything.

[Jerry Ritcey]

What I'm wondering is whether there actually has been any recent change in the law, as she suggested.

She BSed you. First of all, it's not a law at all, it's a contract between the credit card company and the POS business. Any for most cards, they're violating the agreement to ask for the fee.