Charge card service fee from a vendor

[Martin Boekers]

I was shocked this morning.

I had set up and ordered from Gemini (always good remarks here)
A $700 order....tacked on was as they put it a "convenience fee"
of $13 for paying by a credit card. This is the first time I have
heard of this. No other vendor I deal with does this. It's
hard to imagine in this day and age that they will take a check
with no charge, but if you want to pay instantly that you get
charged for them getting their payment instantly.

All I can say is WOW!

Does anyone deal with any other vendor that operates this way?

[Mike Null]

Marty

I don't deal with any but it is not a new concept. That fee is about what they are likely to be paying in cc fees.

[Martin Boekers]

Mike, I would rather they hid it in the quote or shipping and handling then to have a line item that
says "Special Charges" When any vendor tells me that I have to pay a fee for my "convenience" it
does rub me the wrong way. I typically see bars etc have a minimum purchase which I can understand,
but in this day and age businesses should not address such issues as "convenience." They should be
happy we chose them to purchase from and not the other way around. There is competition in the
market place.

[Steve Clarkson]

Marty, I would look into the legality of it.......I'm almost certain that in NY (and IL) that it is illegal to add a surcharge for using a credit card.....to avoid that, businesses in NY offer discounts (ie. 5 cents off a gallon of gas if you pay cash).

[Martin Boekers]

Marty, I would look into the legality of it.......I'm almost certain that in NY (and IL) that it is illegal to add a surcharge for using a credit card.....to avoid that, businesses in NY offer discounts (ie. 5 cents off a gallon of gas if you pay cash).


Thanks Steve! Can't tell exactly where they are, one sight says Maine and another Minnesota, it is illegal in MA but not MINN. I did
check with Visa, and they forbid it in their terms mirroring the Laws in those states. I will follow through with this.


Thanks!

[Gary Hair]

I did check with Visa, and they forbid it in their terms mirroring the Laws in those states.

It's all about definition of terms. Visa, et. al., allow a "convenience charge" but not a "surcharge". There is a big difference between the two and how they are used by the merchant. Here is a link to some good info on the two. http://www.merchantcouncil.org/merchant-account/operation/convenience-fee.php

Gary

[Brian Kent]

Most discount gas stations in California charge about $.45 for using a card. I don't know if this is everywhere.

[John Aspinall]

While I would never approve of surprising a customer with unpredicted charges, I'm going to go a little bit contrary here and say that revealing costs to the customer is a good thing, and completely consistent with free-market principles.

It costs a vendor some amount (let's say 3.5%) to take a payment via credit card. It also benefits a vendor, to a less easily measured degree, to take a payment via credit card. (Ease of remote payment, convenience, fraud protection, brings in greater sales....) The tradeoff between those two will vary from vendor to vendor, and a one-size-fits-all law that says, in effect, "you must hide credit card costs from your customer", is not in the interests of the consumer.
Laws mandating that a vendor must hide credit card costs were written by lobbyists for the credit card industry, for the benefit of the credit card industry, and no one else.

- John

[Mark Sipes]

Martin. Gemini is still losing money by accepting your credit card.. NO WAy! Yes Way...... the cost to process the card was around $21. How you say! 2.5-3.5 % of the charge cost to process the transaction and a fixed 60-85 cent processing fee.

I have a customer that pays by CreditCard. A new CHASE program. (I hate Chase) Checkless banking. The customer tells Chase to process the monthly end of balance and I get an e-mail with a fixed credit card number with approval code.. ( like a gift card ) I process the total due as billed...... AND you guessed it a $87 processing fee for me to accept my payment...... What a racket.

I get customers all day thet process a payment for $3.00- 5.00 and (have no cash) well that is $1.00 to process a $5.00 so I charge a "convenience fee"

If you are on account with Gemini ( Credit Checks and all ) I bet they take checks for payment.

[Martin Boekers]

OK who here charges a convenience charge? Have you called the card company and ask if you can do that?

From searching the VISA sight I understood it to say any extra charge was forbidden. You may offer a cash
discount though. Many businesses have a minimum to use a card so to cover that expense.

I don't think Gemini is losing money by excepting a card, those fees are a cost of doing business. I don't object
to that. I object to them calling it MY convenience. How much does it cost both of us to go through a check approval
process? I have to take steps to get a check cut, mail it wait for them to recieve it, wait for it to clear then they can start on
my order. I would have had it paid for and shipped by then.

WOW do you eat the $87 from Chase, or do you back charge your client? Were do you put that expense in your project?

What happens when there are NO other ways to pay besides a card? Some counties no longer except checks. Then I
guess they card companies can charge whatever they like.

[Craig Matheny]

I run into this when I buy my lifts of Baltic Birch if I pay by check no fee by C/C 5% fee. So I pay by check.

[Mark Sipes]

I don't think Gemini is losing money by excepting a card, those fees are a cost of doing business.

There are over 15 different % rate fees that the Processing company charges me for accepting a credit card. Do you have a Fly Miles Card...a GM Truck or a Cruise Card Who do you think pays for that beneifit.... The retailer/wholesaler......... not the bank there are no "Free Miles"

Debit cards are the same....

The Corporate Cards have the highest rates.....

Do you accept Credt Cards in your Business..??

[Martin Boekers]

Yes we do, the cost of the processing fees are part of a business expense and are
added to the pricing of the product, just a shipping costs encured. I just don't tell
customers, That I except their cards as a convenience to them. If Gemini was losing
money buy only charging me $13 "convenience fee" why not charge me a more accurate
fee? Wouldn't that be a better business practice? I ageed that there is a cost of doing
business, bill me that's fine, but don't tell me like you are doing me the favor for allowing
me to pay by card. Ultimatly it is the end user that pays, as retailers we mark up to
cover our cost and to hopefully tweek out a profit. Believe me I know nothing is free.

I here the story at the ballpark or sporting events the owners tell us they only service food
and drinks as a "convenience" to us. yep at $5 for a $.25 hot dog :)

[Mark Sipes]

So I am assuming you are making an item for a customer....... pass it on as a cost of doing business... handling charges.. If we are talking about a major sign supplier in MN, they may be set up to handle most of there receivables by check and a CC would be for your convience

My new policy: Up prices on all items by 5% and give 3% discount for cash. Thanks

[Albert Nix]

Folks that do a lot of CC business do not pay the rates I do. I cost me 3.7% if I take an order by phone and 2.7% if I swipe thier card at he shop. I know grocery store here in town that pays less than 1% but he said he has close to 100k in CC sales a month.

[Craig Matheny]

Folks that do a lot of CC business do not pay the rates I do. I cost me 3.7% if I take an order by phone and 2.7% if I swipe thier card at he shop. I know grocery store here in town that pays less than 1% but he said he has close to 100k in CC sales a month.

Albert if you have a business account with Costco you can save a lot on C/C fees...

[Scott Shepherd]

Call Gemini and complain. They take their customer service pretty seriously. I think I have the owners email address at work. If you want it, PM me.

[Mark Sipes]

Stay away from American Express... They are the highest rate out there, plus they charge a monthly fee whether you process or not.

Costco uses Elavon as its Merchant Billing Provider.....at least mine does..

last month I had 14 differnt rewards card programs processed on Visa and 7 on Mastercard. Discovery has 4
Visa % ranged from 1.48% to 2.91 %... MasterCard/Diiscover were 1.48% to 3.75% processing fees vary between 20 and 33 cents per swipe

Shop the market. I get calls all the time 2 per week at least from companies stating that can beat evem Costco.

If you find a flat fee % with no processing fees let us know....

[Rich Harman]

If you find a flat fee % with no processing fees let us know....

Square is 2.75% flat rate, no fees per swipe. 3.5% + 15c for manually entering.

[Bill Cunningham]

I take VISA. The cost is built into my prices. I dropped mastercard years ago because they were literally raping me with fees. To keep them, I would have had to raise all my prices more than 5%.. The other payment method we have with Canadian banks is 'interac e-transfer' a customer can transfer money to us via a secure banking email link to our online banking account from their online banking account at no cost to us (it costs the customer a $1.50 fee). When a customer pays this way, I give them a 2.5% discount. I get a email from 'interac' and a link takes me to their secure transfer site where the money is deposited directly into my account. I 'can' use a paypal invoice if mastercard is 'all' they have, but a add a 3% conv. fee just because it's a pita..