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    3 Replies Latest reply on Jan 19, 2013 9:27 AM by Moderator Melinda

    New Merchant Surcharge Rules

    amspcs Ranger

      Attention merchants who accept credit card payment:  Did  you know that as of January 27, 2013, some of you may be permitted to add a surcharge when customers pay by credit card?  For more info, please go to http://www.merchantservices-help.com/blog/new-merchant-surcharge-rules/

        • Re: New Merchant Surcharge Rules
          Guide

          Hi Amspcs,

           

          As a credit card user, I would like to ask what would the extra surcharge be for? We all know the old saying "just because you can, doesn't mean you should".  There is ALWAYS somewhere else you can spend your money if your not satisfied.  I for one as a customer, would not frequent a merchant that would instill a charge without justifying its purpose. As a business owner, you would have to be careful especially in this economy. The last thing you want is to steer customers away from your business.

           

          Interestingly enough, the web page that offers this information is not working properly.

           

          Melinda

            • Re: New Merchant Surcharge Rules
              amspcs Ranger

              Hello Melinda, Thanks for pointing out the link is no longer working.  Visa seems to have taken down the web page of the first link provided for whatever reason, which is beyond my control.  However, there is a second link below it which provides lots of info, inclujding a charge and a second FAQ page if you scroll down. Short answer of what the fee is for:  It allows merchants (short-sighted ones in my opinion) to recoup their costs of processing credit cards.  As most are aware, merchants pay a percentage of the transaction to the credit card processor for the service of processing plastic payments. I'm absolutely with you:  If a merchant ever attempted to surcharge me for using my credit card to patronize their business, they would NEVER see my face again. I have no patience with people who pretend to be businesspeople, but fail to understand the holy grail of retail which is to NEVER hassle the customer in any way and to make sure each and every visit is a 100% positive experience in every way, with the ultimate goal being to get the customer to return again and again. Spot on again, when you say "just because you CAN doesn't mean you SHOULD". Here's why I think surcharging for credit card use is a dumb idea.  Credit card processing expense is just like any other overhead expense aka cost of doing business.  Rent, insurance, payroll, paper bags....all exactly the same..overhead, no more no less.  Would you be upset if your grocer tried to tack on a few extra cents on your order to cover his plastic bag overhead?  Of course.  That's why grocers don't do that.  They just cover the overhead of paper bags in what's know as their 'overhead factor".  Why seek out new ways to hassle and alienate customers?  Just cover the cost elsewhere, don't break it out.  And that's EXACTLY the same thing any short-signed retailer considering adding a credit card surcharge should do. While I'm at it, let me add a short rant about the airline industry.  This breaking out their overhead items and charging separately which they are doing with their baggage fees, convenience fees, pillow fees etc. etc. is exactly the same nonsense we're talking about with the credit card surcharge fee.  They are ruining their reputations and alienating customters left and right, yet they continue to make the same mistake.  If a pedestrian like myself understand this common sense concept, why don't the idiots making six-figures who work in the marketing departments of these airlines get it????

                • Re: New Merchant Surcharge Rules
                  Guide

                  Hi Amspcs,

                   

                  I see that we are on the same page. This is one of the many reasons I believe that the United States prospers when it comes to business - great customer service. Of course many businesses will take advantage of this extra fee. Your example of the airlines was a good one. I believe that that is exactly why many airlines went under - poor customer service (in general the fees). The big problem is when the rest of the companies realize that there is a limited choice for the customer to choose from and they all start including the fees knowing that sooner or later it will become a necessary evil (as in the airline example). But when it comes to credit card usage and retail, the choices are much wider (thank goodness). It is up to us as the customer to voice our opinions with our pockets.

                   

                  Melinda