General Discussion

Ms. Toad

(37,370 posts)

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

Tue Jun 24, 2025, 02:02 PM

Jun 24

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.

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3.5% to 4% fee for paying with a credit card everywhere [View all] edhopper Jun 23 OP

As a former retailer Mosby Jun 23 #1

The retailer? Nah.... The customer. NT Happy Hoosier Jun 23 #3

Do you get a different price using cash? Mosby Jun 23 #6

Nope. Happy Hoosier Jun 23 #8

Pretty sure "everywhere" isn't really "everywhere" onenote Jun 24 #70

your experience is the same as mine. NT Happy Hoosier Jun 24 #71

Yes. My auto mechanic, most restaurants, and one grocery store AllyCat Jun 23 #18

Debit transaction fees aren't a percentage. Did you know that? Mosby Jun 23 #21

That's entirely dependent on processor and how good of a deal a company can get with them. Larger company, better deal. Lancero Jun 24 #31

Yeah, well most still charge anyway. AllyCat Jun 24 #36

Small businesses like restaurants are doing it all the time in our area mcar Jun 24 #48

Joe T Garcia's, a very large and iconic restaurant in Fort Worth only takes cash yellowdogintexas Jun 24 #56

Gas stations still do that, but mostly the smaller chains. yellowdogintexas Jun 24 #57

My mechanic does too. NH Ethylene Jun 24 #27

Where do you live? I see that literally nowhere, except ONE place locally Happy Hoosier Jun 24 #44

I live in rural western Massachusetts. intheflow Jun 24 #47

My mechanic does, too. Alice B. Jun 24 #74

Some places charge more for using credit cards iemanja Jun 24 #26

At my fav Mexican restaurant & 1 grocery store, yes. SheltieLover Jun 24 #32

So, this is kind of my job. usedtobedemgurl Jun 24 #39

It isn't that they aren't supposed to charge more for card transactions... FBaggins Jun 24 #55

Yes, it was still early. No coffee! Lol. usedtobedemgurl Jun 24 #60

When I took my car Delphinus Jun 24 #40

Yup Conjuay Jun 24 #50

Except they consider debit cash. Mosby Jun 24 #65

Yup Conjuay Jun 24 #51

Yes, at some places. Rincewind Jun 24 #52

I have never experienced that in 60+ years living in Phoenix metro. Mosby Jun 24 #66

Pilot, Flying J, Travel America, routinely show cash vs. credit pricing on their fuel price signs. hatrack Jun 24 #58

Isn't it debit vs credit though? Mosby Jun 24 #63

The consumer does pay them FBaggins Jun 23 #10

If the store isnt charging the customer a processing fee, then the store is paying the fees Mosby Jun 23 #12

No. Ms. Toad Jun 23 #15

That's not how stores set margins. Mosby Jun 23 #22

Hmm . . . you just said exactly what I said. Ms. Toad Jun 24 #25

Yes and no...I may be an outlier, but... Maeve Jun 24 #46

It doesn't matter how you rationalize it - Ms. Toad Jun 24 #68

Since I didn't raise my prices when I started taking credit, I have problem seeing it that way Maeve Jun 24 #69

When you choose to raise prices, or how much profit you choose to make, isn't related to who pays the bills. Ms. Toad Jun 24 #72

In my experience in the States in recent years DFW Jun 24 #54

That is where I've seen it most - Ms. Toad Jun 24 #67

"The store is paying the fees" is no different than "the customers are paying those fees" FBaggins Jun 24 #43

You're suggesting stores just eat the fee? Happy Hoosier Jun 24 #45

I am not seeing this in my South Florida neighborhood. Not in restaurants, supermarkets, nor general shopping. Intractable Jun 23 #2

Me neither. One shop here charges a card fee. Happy Hoosier Jun 23 #5

I don't buy much. markodochartaigh Jun 24 #29

And some businesses won't take cash. Pinback Jun 23 #4

In South Florida, the pot dispensaries will only take cash. Intractable Jun 23 #7

They have no choice dsc Jun 23 #20

Came here to say this. AllyCat Jun 24 #37

local sports venue went card only cadoman Jun 24 #53

Its getting very common in maryland thatdemguy Jun 23 #9

We just bought a new washer/dryer and it was 3.5% more if paid for with credit card. Greybnk48 Jun 23 #11

yup. more and more. mopinko Jun 23 #13

Some retailers (I'm talking like even grocery stores) are surprised or annoyed by cash, RockRaven Jun 23 #14

It's mostly showing up in restaurants. Ms. Toad Jun 23 #16

Since it is my job to report on stuff like that.... usedtobedemgurl Jun 24 #41

The gift shop at Prairie Creek in Redwood National Park only takes plastic, no cash. PufPuf23 Jun 23 #17

This message was self-deleted by its author Silent Type Jun 23 #19

It's rare in the places I shop Fiendish Thingy Jun 23 #23

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

My dentist as well. Abolishinist Jun 24 #30

I see this with small business invoices ecstatic Jun 24 #28

Had new roof installed & contractor would've charged 3.5% for me using card SheltieLover Jun 24 #33

Thanks for the tip about the gel pens. raccoon Jun 25 #79

Yw. I'd never heard of check washing & read article that named pen SheltieLover Jun 25 #80

Thanks. I know a woman this happened to! Somebody washed her check(s) and used it. I don't recall the outcome. raccoon Jun 25 #81

People will only put up with so much canetoad Jun 24 #34

We hate them. It's also a reason why I never use Act Blue DFW Jun 24 #35

Perfectly happy for you to do what you wish... Happy Hoosier Jun 24 #62

It's really common here in Detroit bif Jun 24 #38

After my husband's death, I closed the Credit Card accounts. ProudMNDemocrat Jun 24 #42

I don't think they do that with debit cards. Kaleva Jun 24 #49

Another reason to limit purchases to only those necessary. OrlandoDem2 Jun 24 #59

There is still the thing that a small business usually ends up not reporting some of the cash sales since the only LiberalArkie Jun 24 #61

They're charging the consumer dlilafae Jun 24 #64

There's another reason, quite apart from the fee aspect, that we dislike credit cards. DFW Jun 24 #73

Some stores do a cash discount, some to a credit surcharge and others don't do either. TheBlackAdder Jun 24 #75

Because that is what the credit card companies charge the retailer. If they pay cash they don't have to lostincalifornia Jun 24 #76

Most businesses for not charge a fee for paying by card Jose Garcia Jun 24 #77

3% in restaurants here. piddyprints Jun 24 #78

Not sure, but I think I can use my debit card with no fee. CTyankee Jun 25 #82

Debit card edhopper Jun 25 #83

Oh, I know that and protect it very closely! I don't travel around much and take precautions even at home. CTyankee Jun 25 #84