AUTOSHOPS - May dagdag when paying via credit card (surcharge)

**Dr.Kamiya** · May 17th, 2007 03:51 PM

Palusot sa DTI yung "3% discount for cash customers", tapos yung SRP nila inflated na by 3% in advance.

Done that way, wala talagang magagawa DTI or CC company mo, since hindi naman sya "surcharge".

**Auto_Xer** · May 17th, 2007 06:44 PM

IMm29,

If you ever find yourself in QC maybe you can drop by our service shop.
We accept card payments without surcharge.

**///MPower** · May 17th, 2007 07:24 PM

Technically, merchants are not allowed to add a surcharge for CC transactions, and doing so violates the terms of the agreements they have with the credit companies. You could, if you so wish, complain to the card companies and have their merchant licenses revoked.

**non-vtec** · May 17th, 2007 09:27 PM

What if your nature of business is that you get products from dealers with -7% from the SRP. then the bank or credit card company charges you 4-5% as cc commission? how are you supposed to earn profit? in essence you'll roughly get 2% profit??

**///MPower** · May 17th, 2007 09:39 PM

Originally Posted by non-vtec

What if your nature of business is that you get products from dealers with -7% from the SRP. then the bank or credit card company charges you 4-5% as cc commission? how are you supposed to earn profit? in essence you'll roughly get 2% profit??

Irrelevant. Credit card companies provide vendors a service, allowing customers who want to pay with a card the ability to do so. Without the credit companies, vendors would theoretically not make any sales to people who don't want to pay cash. They would lose business, and 2% is better than no sale at all.

Frankly, I don't care at all what the vendors bottom line is; it's not my responsibility, nor the credit card company's responsiblity, to make sure the vendor's business is profitable.

**BlueBimmer** · May 17th, 2007 10:45 PM

actually not accepting CC is better than losing money in accepting CC payments of very low markup items. product cost is only one aspect of the sale, there are numerous other costs that needs to be considered if one is to remain in business.

anyway, only those who engage in these low markup items such as raw construction materials, could ever understand. not the CC users or CC companies.

**froshie1** · May 17th, 2007 11:05 PM

gahaman ang tawag ko sa mga merchants na nagdadagdag ng surcharge.. di ata nila naiintindihan ang pagkakaron ng credit card facility besides boosting sales. pagkakaron ng facility ay isang serbisyo ng CC company hindi lang para maka boost ng sales, ito ay para maging secured ang kaha ng mga merchants. malaki kasi ang chance at matempt ang kahera mo na magtakbo ng pera kung 100% cash lang ang tinatanggap ng isang business. and syempre, wala namang libre sa mundo kaya may porsyento doon ang CC. wag na lang sila mag tayo ng CC kung di naman kaya ng negosyo tumanggap ng CC.

**Pencils** · May 18th, 2007 01:30 AM

Credit Card companies have a need for shopowners. They make no money if the shops don't accept their cards. Likewise, Shopowners need CC's to boost sales as there are many buyers who simply don't have the cash to pay for their purchases and so have habituated themselves to spending future money via the Credit Card because the bill won't come due until the end of the month. This helps a lot when you need the groceries today and you don't have the cash on you or in the bank. If the consumer does this frequently, he gets to the point wherein he spends next months salary today. The CC commission is no burden to the shopowner as it's actually borne by the consumer. The shop merely includes the commission in it's markup, and in return, is guaranteed payment by the CC company for all items purchased via their CC.

It's the consumer who ends up with a price that is 10% higher, regardless that he pays via CC or cash. The order quoted by lm723, purportedly for the protection of the consumer, actually ensures or encourages the use of the CC because it equalizes the selling price to both the cash buyer and the CC buyer regardless that the shopowner pays a 10% commission to the CC company for all CC sales. I really wonder whose interests that department order is protecting. I doubt it's mine. The CC gets you coming and going. You pay to aquire their card and pay a penalty if you don't use their card to make your purchases. There's even a minimum purchase required.

Like I said, I don't like the CC. I once had one for gas and found myself looking for places to drive to simply because I never felt the cost until the end of the month. At that point I returned the card and quit.

It's understandable that shops would prefer CC purchases. Impulse buying is very much available if all it takes is a signature. Where cash payments are concerned, you have to count out the money and see your deflated wallet. It's because I pay in cash that I manage to avoid a lot of silly purchases. I have to think and get the money before I can spend it. With a CC, you carry your bank account and future earnings in your wallet.

Pencils

**Elroi** · May 18th, 2007 01:42 AM

Originally Posted by BlueBimmer

actually not accepting CC is better than losing money in accepting CC payments of very low markup items. product cost is only one aspect of the sale, there are numerous other costs that needs to be considered if one is to remain in business.

anyway, only those who engage in these low markup items such as raw construction materials, could ever understand. not the CC users or CC companies.

+1

**///MPower** · May 18th, 2007 02:25 AM

Originally Posted by BlueBimmer

actually not accepting CC is better than losing money in accepting CC payments of very low markup items. product cost is only one aspect of the sale, there are numerous other costs that needs to be considered if one is to remain in business.

anyway, only those who engage in these low markup items such as raw construction materials, could ever understand. not the CC users or CC companies.

Valid point. But again, it's not up to the customer to figure out the vendor's business model. If a vendor can't to offer it, then, as you said, they shouldn't offer CC payments at all. Violating the terms of the agreement (and subsequently screwing the customer) is still a risk they can take, but then a consumer is well within their rights to report them to the credit bureau.

Originally Posted by Pencils

Like I said, I don't like the CC. I once had one for gas and found myself looking for places to drive to simply because I never felt the cost until the end of the month. At that point I returned the card and quit.

You're right in that the credit card companies are not there to be your friends, and if you're not careful, it's real easy to sign away on a card that is not very beneficial to you. However, there are many valid uses for credit cards other than "spending next month's salary." Not everyone has problems with spending wisely and within their means.