3.5% to 4% fee for paying with a credit card everywhere

[edhopper]

It's just another tax on those least able to afford it.
I am using cash now more and more. The oligarchy are sucking up every little scrap they can.

[Mosby]

1. As a former retailer

The worst cards are Disney and airline point cards. The retailer is paying for those points.

I don't know where you shop, but the vast majority of stored eat the CC fees, the consumer doesn't pay them.

[Happy Hoosier]

3. The retailer? Nah.... The customer. NT

[Mosby]

6. Do you get a different price using cash?

Do tell.

[Happy Hoosier]

8. Nope.

The retailers price products to account for swipe fees. It’s one reason I use rewards cards… I recover some of that.

[onenote]

70. Pretty sure "everywhere" isn't really "everywhere"

While a few gas stations offer discounts for cash purchases, almost all other retailers don't differentiate. At least not in my northern Virginia neighborhood.

Maybe I'm living in nowhere?

[Happy Hoosier]

71. your experience is the same as mine. NT

[AllyCat]

18. Yes. My auto mechanic, most restaurants, and one grocery store

List a cash price and a card price. 3-5% is the extra fee for using credit.

[Mosby]

21. Debit transaction fees aren't a percentage. Did you know that?

They run from 5-15 cents per swipe.

Personally I don't know a single business that charges different rates for cash or plastic. But I'm in a metro area of 5.2 million, maybe it's different in other places.

[Lancero]

31. That's entirely dependent on processor and how good of a deal a company can get with them. Larger company, better deal.

Here's the pricing structures for Stripe as an example.

https://stripe.com/en-sg/pricing

Terminal payments (ie, in person by debit card) runs 3.4% +$.50.

[AllyCat]

36. Yeah, well most still charge anyway.

I know that. But they charge anyway.

[mcar]

48. Small businesses like restaurants are doing it all the time in our area

I had to record some paperwork with the County Clerk last week. They are also charging more for using a credit or debit card.

[yellowdogintexas]

56. Joe T Garcia's, a very large and iconic restaurant in Fort Worth only takes cash

No checks, no debit cards or credit cards. To my knowledge they have always been a 'cash only' place.

They have an ATM just inside the door in case you don't have cash, so instead of the credit card fee you end up paying the ATM fees. I am not sure which is worse.

Joe T's is one of those places visitors are taken by their hosts, because it is so legendary. In my opinion there are plenty of better Mexican eateries around town. Their food is rather mediocre. However the patio at night with a crowd of friends and pitchers of margaritas can make up for it.

If I want to show visitors a unique place, I take them to Central Market to pick out dinner ingredients. It's a lot more fun and they will take my debit card. (if you are ever in DFW, Austin, San Antonio or Houston, find the Central Market and enjoy yourself)

[yellowdogintexas]

57. Gas stations still do that, but mostly the smaller chains.

I only gas up at Costco so I may not be current in my information

[NH Ethylene]

27. My mechanic does too.

I always bring cash now when getting my car worked on.

[Happy Hoosier]

44. Where do you live? I see that literally nowhere, except ONE place locally

I don't object if they do, I just won't shop there.

[intheflow]

47. I live in rural western Massachusetts.

Many stores have been doing this right along here. The bank fees in Mass are nuts for retailers. A lot of small businesses have signage that says, “Cash is king!”

[Alice B.]

74. My mechanic does, too.

[iemanja]

26. Some places charge more for using credit cards

Last edited Tue Jun 24, 2025, 04:33 AM - Edit history (1)

Nail salons, my county’s property tax, some home repair services, for example.

[SheltieLover]

32. At my fav Mexican restaurant & 1 grocery store, yes.

[usedtobedemgurl]

39. So, this is kind of my job.

I do shops for a card company. I go inside and get the same item twice. One I pay for with cash. One I pay for with the card. I report back to the card company which stores charge more for card purchases and how much. I do so many of these jobs that I only ate takeout for the last 2 1/2 months. Nothing was bought at the grocery store, unless it was a job for the card people. This is to say, I have a good amount of experience with different pricing structures.

There is something called dual pricing. One price for a card, one for cash. There are discounts given at some stores, if you pay in cash. There are charges on card purchases and you may never know, if you did not look. A lot of times (maybe 75% or more) your itemized receipt will reflect the menu price, but if you look at the card receipt, you will see the price is higher and there may not have been a sign or so.done telling you, to warn you about it! And some stores just have a minimum amount if you make a card purchase. From what I hear, true or not, the store are not supposed to charge more for card trsnsactions. It is in their contract, so they send folks like me to take pictures and make purchases, so violations can be fixed. Although, I see some companies charge for card transactions year after year.

So, yes, there are places that give you a cash price.

[FBaggins]

55. It isn't that they aren't supposed to charge more for card transactions...

Visa can't require that... but they can and do require that the dual pricing be clearly conveyed to the customer. That could be explicitly listing both cash/credit prices.

Almost all of the advice is to market the lower price as a discount for cash - rather than focusing on a "surcharge" for credit... but that's really just advice based on customer behavior. They are more likely to get upset (as highlighted in the OP) by one and see the other as merely an option to save money... even though they are exactly the same thing.

[usedtobedemgurl]

60. Yes, it was still early. No coffee! Lol.

I said they are not supposed to and you said without a sign. I did not finish my complete thought. They are not supposed to….without a sign. From my experience, about 60% do not have signs of any kind. About 2% have hidden, or hard to find signs. The rest of the businesses are pretty straight forward about it.

I use cards, for points, for most of my regular transactions. It is only since I took my job that I noticed those sneaky surcharges on quite a few of my purchases. It should always be plainly stated.

I remember one store where I asked why the card purchase was greater than the cash purchase. They nodded to a sign on the wall. I have to include those signs in my reports. I took photos. The sign said nothing about discounts or extra charges.

Another time, I asked why the card purchase was so much more. I was pointed towards a sign about surcharges on card transactions. Yeah, but they charged extra for the item and did a surcharge! So, if I was buying the small bottle of olive oil, and it was $5, the card transaction charged $6 PLUS the fee on top of that! Not the card companies problem, since they had a sign out about fees, but to charge that extra? Not good. There were people behind me, and I knew I was being reimbursed, so I did not make a fuss. I guess the lesson is you always have to pay attention.

[Delphinus]

40. When I took my car

in for servicing, they told me if I used cash or a check, it would be less. There was definitely a fee.

[Conjuay]

50. Yup

Gas stations near me show a cash and credit purchase price. About a ten cents per gallon difference.

[Mosby]

65. Except they consider debit cash.

Nt.

[Conjuay]

51. Yup

Gas stations near me show a cash and credit purchase price. About a ten cents per gallon difference.

[Rincewind]

52. Yes, at some places.

Went to dinner with some friends, my bill was $17.68 (plus tip) if paying with credit card, $17.00 cash. I paid with cash, left a cash tip.

[Mosby]

66. I have never experienced that in 60+ years living in Phoenix metro.

[hatrack]

58. Pilot, Flying J, Travel America, routinely show cash vs. credit pricing on their fuel price signs.

.

[Mosby]

63. Isn't it debit vs credit though?

The "cash" price is a debit transaction.

[FBaggins]

10. The consumer does pay them

It’s just a question of whether all of the store’s customers share in the expense or just those that caused it.

[Mosby]

12. If the store isnt charging the customer a processing fee, then the store is paying the fees

If your argument is that the store sets it's gross margins higher because of CC fees that's not true either. There are far more significant expenses that affect pricing decisions, the 2-3% CC fees are the least of it. The biggest factor in pricing is often competition, especially in denser urban areas.

[Ms. Toad]

15. No.

Stores spread all the costs (and the profit margin) across all customers - those costs include rent, taxes, employee wages, and - yes - credit card fees. Unless they expressly charge the credit card fees to those responsible for generating them.

[Mosby]

22. That's not how stores set margins.

CC fees are a cost of doing business. Larger transactions though are different, your not going to buy a vehicle with a credit card without paying the fees.

[Ms. Toad]

25. Hmm . . . you just said exactly what I said.

Who do you think ultimately pays the cost of doing business?

You are correct - as I said earlier - credit card fees are simply a cost of doing business. Businesses don't just take the costs of doing business out of their back pockets. All responsible businesses calculate the cost of doing business (including credit card fees, rent, taxes, cost of goods, wages, etc.) and mark up the raw costs of goods and services for all customers to make sure they take in enough money to cover the cost of doing goods, including the transaction fees. The only alternative to appropriate pricing for all goods and services, short of going out of business, is to charge the transaction fees to the specific party that generates them - as some businesses are starting to do.

[Maeve]

46. Yes and no...I may be an outlier, but...

I do a (very) small business selling my books, etc. Originally, it was just cash, but I get a lot more sales since I started accepting credit. Yeah, I lose 3% to the company, but make it up in volume, and it's a business expense worth having. I do know some vendors at festivals give a discount for cash sales.
No stores in my area change prices for cash vs credit

[Ms. Toad]

68. It doesn't matter how you rationalize it -

You are spreading the cost of accepting credit cards across all customers, as a cost of doing business (i.e. a business expense). If your business is going to continue, that cost is either (1) spread out over all the customers or (2) passed through to the customer responsible for incurring it. You have decided to spread it across all your customers.

Nothing wrong with that - but every expense of the business is ultimately paid by the customer. Either passed through to a single customer responsible for the cost (e.g. bottle deposits, in the past) - or - spread over all customers (rent, employee expenses, taxes, advertising, etc.) Most businesses (all, by contract or law in the past) spread them over all customers. There is at least a minor trend to charge for credit card purchases. I don't know whether it will continue to spread is anyone's guess.

But your decision that it is worth the business expense is no different from a store using a loss leader to get people in the door. Both losses/expenses are justified because of the increase in volume - that's a business decision. But a store can't stay in business unless it passes the cost of doing business on to the customers.

[Maeve]

69. Since I didn't raise my prices when I started taking credit, I have problem seeing it that way

The money that goes to the credit company would have gone into my pocket, not back to the customer. Of course, I haven't raised prices in over 10 years, so there's that....yeah, profits fell as inflation changed the cost of supplies, but I never intended to make a fortune; just a living. (Actually, just a little extra on the side)
My profits dropped. That is why I say I don't pass the credit cost along to the customers. Not all business have that leeway with profit (although a bunch really do!)

[Ms. Toad]

72. When you choose to raise prices, or how much profit you choose to make, isn't related to who pays the bills.

In a profit-making business (no matter how large or small that profit is), all business expenses are ultimately paid by the customer. Since you aren't passing the credit card fees on to customers directly, it is a shared expense, which is spread across all customers.

Both as a consumer, and as the owner of multiple micro businesses, the inequity of imposing a share of the credit card transaction fees on customers who are not well-off enough to be able to obtain a credit card is something I have been wrestling with for 5 decades. I don't like the fact that customers who use cash out of necessity are still paying the fees for cards to which they do not have access. As always, people without means bear more than their fair share of the cost of doing business (higher interest rates, payday loans, rapid refund fees, food deserts - resulting in higher grocery costs). If you choose not to raise your prices and make a smaller profit - that is under your control, as a business owner. Cash customers do not have the option of refusing to subsidize the use of credit cards. It's just one more tax on being poor.

Personally, since there's nothing I can do as a customer to change the transaction fee dynamic, I have always paid with credit cards and have taken advantage of the 30+ days of interest free loans (not available to those who have to pay cash). It makes absolutely no difference in the volume of my purchases. It is a simply a matter of convenience - and gives me an extra 30+ days before the money leaves my money market account. Since I can't change the system, it is financially irresponsible not to take advantage of it.

Now that stores are starting to charge part or all of the transaction fees to the credit card user (1) I am glad that the system is becoming more equitable and (2) I pay cash because it is more fiscally responsible on a personal basis.

[DFW]

54. In my experience in the States in recent years

The places most likely to differentiate between cash and card sales are the ones dealing in "mostly" unitary products. A gas station will sell mostly gasoline, a restaurant will sell mostly food, etc. There are others, of course, but the ones I have seen that are most likely to publicly display a dual price schedule are those two. Obviously a department store or some retailer that gets their articles from a multitude of wholesalers won't have an easy time doing this for every item they sell.

[Ms. Toad]

67. That is where I've seen it most -

But also in smaller stores, where there is a sign at the door or the register that there is a surcharge for paying with credit. No need to price anything individually - it is just an overall surcharge.

[FBaggins]

43. "The store is paying the fees" is no different than "the customers are paying those fees"

They both mean the same thing.

The only difference here is that some stores are giving customers the ability to influence the prices they pay in a way that is directly related to the cost of providing the goods or services. If you choose to pay with a credit card their cost is a little higher so they charge a little more... if you choose to pay with cash their cost is a little lower and they're willing to pass that savings on to you.

Some "mom and pop" stores do it as a way to thumb their noses at ridiculous card processing fees. They can't afford to not accept credit cards (they would lose too much business) but they want to stick it to the big banks - so they offer a discount for cash.

It's the same thing - but somehow I suspect that the OP would not see it that way.

[Happy Hoosier]

45. You're suggesting stores just eat the fee?

They don't. 2-3% of total price is a significant cost. No way they just take that from the margin.

Yes, competition drives margins down, but they DO consider ALL the costs of doing business, including swipe fees. Any company that ignores that is going out of business.

[Intractable]

2. I am not seeing this in my South Florida neighborhood. Not in restaurants, supermarkets, nor general shopping.

"They" want us using cards, so "they" can track our purchases.

[Happy Hoosier]

5. Me neither. One shop here charges a card fee.

None of the places I usually shop do.

[markodochartaigh]

29. I don't buy much.

But at gardening events with lots of small sellers here in South Florida I see a charge for using a credit card. And having moved from Texas to Southwest Florida, I'm struck by the size of the cash economy here. Even job ads, and job wanted ads, often state that the job is a cash position. At the Cuban owned nurseries I don't think that I have seen any where you couldn't get a standard 10% off for paying in cash.

[Pinback]

4. And some businesses won't take cash.

And as a bonus, using a credit card puts you at higher risk of surveillance. (I say this as a person who pays for a lot of things with a credit card, but I hate surveillance capitalism, so I resist where I can.)

[Intractable]

7. In South Florida, the pot dispensaries will only take cash.

I love it! No tax, either.

[dsc]

20. They have no choice

the feds won't give them access to banking, so credit card companies can't deal with them.

[AllyCat]

37. Came here to say this.

They aren’t allowed banking services.

[cadoman]

53. local sports venue went card only

Don't visit the local sports venue any more. It's one of the nastiest, subtle forms of discrimination imaginable, and should be illegal.

Not every one has access to credit.

[thatdemguy]

9. Its getting very common in maryland

Especially with locally owned retailers, they are getting squeezed from every side. 3% can be their profit on some items or at least a large chunk of it.

[Greybnk48]

11. We just bought a new washer/dryer and it was 3.5% more if paid for with credit card.

We didn't have to do tha. But years ago, when we were scraping by, we would have had to pay the extra when it would have hurt us the most. That sucks that we're back to that Reagan bullshit again.

[mopinko]

13. yup. more and more.

not surprised when a plumber wanted an extra 3.5 to take a credit card, but noticing it more and more. ate at a local bar recently and it was added on b4 i even paid. hadnt even noticed b4. usually just pay it, but i looked extra close cuz i was pretty unhappy w the service and wasnt leaving my usual way generous tip. sorta pisses me off, cuz i usually use a debit card, which is less.
was in a liquor store the other day. they gave me a total, and when i pulled out cash, they dropped it by about $1.50 on $20.

i remember when that was an absolute no no.

[RockRaven]

14. Some retailers (I'm talking like even grocery stores) are surprised or annoyed by cash,

or at least the cashiers are, meanwhile the card companies charge them fees on each transaction -- which they are now trying to pass on -- so there is no winning for the masses. Which is how late stage capitalism works in general.

[Ms. Toad]

16. It's mostly showing up in restaurants.

Not much anywhere else.

[usedtobedemgurl]

41. Since it is my job to report on stuff like that....

See my post above, it is restaurants, hemp places and some salons. That is by no means a comprehensive list, but I have been processing this information for years.

[PufPuf23]

17. The gift shop at Prairie Creek in Redwood National Park only takes plastic, no cash.

Surprised me as in shop with out of the area visitors.

[Fiendish Thingy]

23. It's rare in the places I shop

I live in BC, but travel to/through WA, OR and CA and rarely, if ever, encounter a business that charges a fee to use a credit card. I think I’ve only encountered a fee at places like a farmer’s market or a craft fair.

[marybourg]

24. My dentist. My home health aide agency. About half of repair persons who come to the house.

[Abolishinist]

30. My dentist as well.

He's great, I wouldn't go anywhere else, but adding 3% = $66 to my last bill of $2,200 really pizzed me off. He's NOT a retail store, where I can see how this can matter, COGS etc. I really couldn't care less if he ends up making $400 per hour vs. $388 per hour.

[ecstatic]

28. I see this with small business invoices

Or sometimes utility bills. But that's not common in most restaurants, supermarkets or stores.

[SheltieLover]

33. Had new roof installed & contractor would've charged 3.5% for me using card

Only for my deductible portion & upgrades insurance didn't cover, but it was still a significant amount, around $4-$5k.

So I ordered the gel pens that make washing much more difficult & wrote a check.

[raccoon]

79. Thanks for the tip about the gel pens.

[SheltieLover]

80. Yw. I'd never heard of check washing & read article that named pen

I think it was a Pilot, but can't recall which one.

Here is article about inks

https://benchmarkfcu.org/prevent-check-washing-scams-with-gel-pens/#:~:text=Here's%20how%20gel%20pens%2C%20particularly,to%20wash%20off%20using%20chemicals.

[raccoon]

81. Thanks. I know a woman this happened to! Somebody washed her check(s) and used it. I don't recall the outcome.

[canetoad]

34. People will only put up with so much

Then it will be a figurative storming of the Bastille. There will be violence.

[DFW]

35. We hate them. It's also a reason why I never use Act Blue

Last edited Tue Jun 24, 2025, 10:12 AM - Edit history (3)

Tracking our every purchase (and thus location, preferences, which are then communicated/sold to advertisers—or maybe government agencies?) is not something we let others do voluntarily. We lived with control freak socialist East Germany next door for decades. They drowned in their mountains of data on their citizens. If they had had modern IT, their little paradise would have been far more terrifying. We visited over there from time to time. Big Brother really was watching you.

We pay cash when and where practical. When it’s not (plane reservations, hotels, car rentals, etc.), we wire direct. Here in Europe, several airlines already charge a hefty surcharge if payment is made by credit card. In Cape Cod, when we need to gas up the rental car, which is not often, the distances being short, there is usually a published price difference on the pumps themselves. There is one line for cash pumps (cheaper) and one for credit card payment pumps. The gas station doesn’t care which, since their net sale is the same.

We occasionally get confronted by advocates of a cashless society, whose line is always, “so the government knows. What are you afraid of?” We had visited the paradise of the “true existing socialism,” as East Germany used to call itself, on numerous occasions. Once you have experienced THAT a few times, you know what there is to be afraid of.

Act Blue already takes for themselves 3.95% of every contribution that goes through them. Deduct another 4% for the credit card company, and your candidate is down about 8%. That is $80,000 out of every million contributed through Act Blue that your candidate’s campaign never sees. We send checks.

[Happy Hoosier]

62. Perfectly happy for you to do what you wish...

I personally do not miss the days of carrying around cash, particularly coins. Don't miss it a bit.

[bif]

38. It's really common here in Detroit

And I know why they do it. They prefer cash because they have two sets of books. That way they can hide a big chunk of the money they take in.

[ProudMNDemocrat]

42. After my husband's death, I closed the Credit Card accounts.

Because he was the primary owner and to reduce the chance of credit card fraud. I am debating as to whether or not I want to reapply for a Costco Visa card this fall once I know what monies are coming in versus going out to justify having one as compared to using the Debits.

I have Debit cards from the two banks we have joint and savings accounts with, however. Debit is the same as cash as it comes directly out of the account and there is plenty for necessary and controlled purchases.

I use Square Dashboard when my clients pay me for purchases via my Custom Sewing and Alterations business. The small fee they charge me is recorded as Bank Fees that I itemize for Tax purposes.

[Kaleva]

49. I don't think they do that with debit cards.

[OrlandoDem2]

59. Another reason to limit purchases to only those necessary.

Most of the country’s institutions and many individuals are fiscally reaming us.

[LiberalArkie]

61. There is still the thing that a small business usually ends up not reporting some of the cash sales since the only

record is that little receipt the person creates for the customer. There is a reason small construction, small car repair places usually pair their employees cash every week. Of course the employee suffers in the future as they really do not have a work record in the state or federal system. The employee is happy as they take home more money since no taxes were taken out.

[dlilafae]

64. They're charging the consumer

the merchants fee.

[DFW]

73. There's another reason, quite apart from the fee aspect, that we dislike credit cards.

Two years ago, in Wellfleet, MA, we were in one of the small local food/general stores, and my wife was in line when the power for the credit card processing machine went out. The power, the connection, I dpon't know exactly what the problem was, but the store suddenly could not process credit or debit cards. They announced it, and said cash only, please, until the system came back on.

The woman in front of my wife began to cry, because she was there for some $5 packet of baby formula for her infant. She had zero cash on her, just her credit/debit card, which, without a way to process a payment on it, might as well have been a New York Subway fare card. She had literally no way to pay for a $5 packet of baby formula. My wife took out $5 and gave it to her, and said here, go take care of your baby (once a social worker, always a social worker). The woman literally asked for my wife's address, so she could transfer the $5 back. My wife explained that she was from Germany, and that it would cost more than $5 to wire her $5, and anyway, she didn't have a US Dollar account, only Euros. She told the woman she could pay her back by never, ever again, going to shop for inexpensive essentials without carrying some cash on her. She said she had learned her lesson. My wife said that was repayment enough.

[TheBlackAdder]

75. Some stores do a cash discount, some to a credit surcharge and others don't do either.

I mean, it's the reality of dealing with credit cards, the retailer used to eat the costs, but with most people now using credit and debit cards, it's either factored into the cost of doing business, and in doing so penalizes the buyer who pays with cash.

I just had a timing belt, pulleys and a water pump replaced on one of my cars. I was given a cash price and paid a credit card surcharge. My local Chinese restaurant I pay with cash, and they give cash discounts.

3.5% is half of my state's sales tax and people hate paying the 7%.

[lostincalifornia]

76. Because that is what the credit card companies charge the retailer. If they pay cash they don't have to

pay that fee.

[Jose Garcia]

77. Most businesses for not charge a fee for paying by card

[piddyprints]

78. 3% in restaurants here.

Solution? We'll eat out less and order less. At the same time they added the 3%, they also printed new menus with significantly higher prices. No thanks.

Sure, we could use a debit card, but we don't because they are less safe. Someone got our number from an ATM machine once and it took weeks to get our money back, even though the first words the cardholder customer service said was, "we know it was fraud and it came from using an ATM machine."

[CTyankee]

82. Not sure, but I think I can use my debit card with no fee.

I don't use a credit card any more. My home cleaner wants cash and I can use my debit card at the supermarket and purchasing items online.

[edhopper]

83. Debit card

Much more vulnerable to fraud and not protected like credit card.

[CTyankee]

84. Oh, I know that and protect it very closely! I don't travel around much and take precautions even at home.

Back when I did a lot of travel I used credit cards because of greater risks and would not have considered a debit card. As for in home risks, i.e. house cleaners, painters, plumbers, handy persons, we have developed relationships with most of them; for any new people in the house we take special precautions.