Posted on 10/06/2013 5:01:28 PM PDT by Borges
I noticed that "affluent customers" too. I had credit cards in the 60s and as a G.I., I was hardly "affluent". I had two gas station cards and an AMEX.
I remember that too. At the same time, they allowed Sears to do it, to process their own Discover card.
Having dealt with credit cards as a business owner, this is why I prefer to pay cash at businesses I like. The business is not allowed to charge more for those credit card transactions, so they make less profit on them. If you want to help the business make a bigger profit, PAY CASH!
The way around this is, while being careful not to violate the card contract, is to give significant discounts for cash purchases. Although charging a fee for using a credit card is likely disallowed, unrelated fees can be added for just credit card users, as long as it is done discreetly.
The problem is that competition in the credit card market is minimal.
So more federal regulation is the answer?
If he doesn’t want to pay the fees on transactions, he doesn’t have to accept the cards as payment. The free market is a wonderful thing.
Grocery stores have between 1/2 & 1 1/2% net profit before taxes every year. Have for a very long time. I worked for Kroger in an accounting office in the late 50’s & then in other chain operations in the 70’s & 80’s. Didn’t change the net profits.
What kind of gross margin were they trying to achieve?
This does seem to be a false post.
All know that using a credit card costs more to the retailer and sometimes to the customer. I am charged .25 cents for every transaction of a credit card.
You know that and you complain? You have to either charge more for credit or absorb the cost.
Why are you complaining? This has been going on for years.
Mr. Seth should have his stores offer a small discount for cash transactions. The discount should be about 25% of the difference between a cash sale and a credit card sale, thereby cutting his payments to the card companies by a significant amount.
He’ll have to recalibrate his cashiers’ machines, and even teach some cashiers how to figure out the difference of the discount (cheatsheets are very useful), but it could save him hundreds of thousands of dollars and make his businesses more eater friendly.
Old business saying: “If you give them a discount, they will come!”
My wife and I own an antique store. It is our practice to offer a considerable discount for those that will pay with cash or a check. When we price our goods the cost of the credit card swipe is built into our price. Our discount is greater than the cost of the swipe but when a customer can buy with a 20% discount it “seals the deal” and we get purchases that we would have otherwise lost.
I hate American Express and we do not accept American Express in our shop as their cut and expenses are excessive.
ps
If they are active duty military they get the discount regardless of how they pay. Even when they are in civilian cloths you know they are military by their haircut and demoner. They are respectful and polite and do not ask for a discount.
I remember one day a army couple came in. She wanted an antique brooch. It was a bit expensive and it was obvious that money was a factor, as I heard the conversation between her and husband. I also knew it was her birthday from a conversation with her and the husband. They were about to leave the shop and I stopped them. I gave her the brooch for free and thanked her husband for his service in the Army and said to his wife,”happy birthday.” That was the best non sale I ever made in my life.
Mr. Seth should have his stores offer a small discount for cash transactions. They discount should be about 25% of the difference between a cash sale and a credit card sale, then cutting his payments to the card companies by a significant amount.
He’ll have to recalibrate his cashiers’ machines, and even teach some cashiers how to figure out the difference of the discount (cheatsheets are very useful), but it could save him hundreds of thousands of dollars and make his businesses more eater friendly.
He should give cash discounts. I remember when retail clerks used to ask “Cash or charge?” There are some retail oil companies that give a discount if you use their card. They don’t have to pay a fee to themselves.There are still gas stations all over S.C. that post cash/charge prices (cash is significantly lower).
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