Its good to have a monopoly
He’s running on 1-3% margins?
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.
Too bad. When I eat at Burger King (every year or two) I pay cash. If he doesn’t like it, he should tell Burger King to issue their own credit card. I always pay $40-50 cash at my local gas / convenience store because it is not a chain and I don’t want them losing 2% when their gas margin is only a few percent. The main reason is they are 3 miles away and the next nearest is 7 miles.
Our local store charges extra if you use a credit card on small purchases. And several of the restaurants we go to in town do the same thing.
I use a credit card because it’s a lot more convenient than carrying a lot of cash around. But that may change, as the banks charge more and more for the privilege.
High net worth customers like to use Amex, though, so refusing to take it is not a good option.
So pay cash.
When I was in retail back in the 70's we used to play banks off against each other to get lower rates. Our McVisa rate at one time was only 0.79 percent. A regional bank in Florida gave us a merchant account at that rate even though we were a Houston retail company.
The credit card companies need to make money too and they provide a valuable service by making it unnecessary for consumers to carry around cash.
Bit of an over statement. I’ve had a charge card since the early 1980s and was most certainly not a member of an any small club of “affluent customers.” then. I am not today, as well. That said, I’ve never used a credit card at a fast food joint.
“When I opened my first store in 1994, cash was king and “charge cards,” as they then were called, were status symbols held by a tiny number of affluent customers.”
This is all part of crony capitalism, and what happens when governments sticks its nose into the markets.
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.
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.
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.