Passing on Credit Card Fees - revisited

4 replies [Last post]
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Joined:
06/24/2008

We've spoken about this numerous times, Credit Card fees.  It was against the law to charge more to someone using a credit card to pay, now (except in 10 states) the rules have changed.  See article here

It did interest me that they pointed out that fees could be higher for different types of cards: 

"Different retailers may pay -- and different credit cards may attract -- different swipe-fee rates, which makes the whole process more complicated. Don't be embarrassed to ask at the checkout how much will be charged for using the various cards in your wallet. You may well find the amount is higher for rewards credit cards, and you'd be better off paying with another piece of plastic."

Joey Camb's picture
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Joined:
04/02/2010

also you have to watch what your terms and conditions are with 3rd party sites - for example in Booking.com you can't charge extra for card processing (ie could give a cash discount) my neighbour got into a huge fight with them about it and tried to get me on her side - gingerly pointed out she did sign the terms and conditions.

We suck it up - however what is becoming more of a thing is to do electronic transfer which costs me nothing - this is great for my higher paying regulars ie they book 3 rooms for 5 nights etc and the money is in your account within 2 hours.

However if this becomes more and more the case (it has just started this year) I may set up a current account I put these transfers into so they don't get my "real account no" which when the money arrives will just transfer it straight out again.

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Offline
Joined:
06/24/2008

Rehashing my thought of advertising a discount for cash.  Deposit by CC at time of booking assures having the card # and knowing it is good, balance gets a discount if they pay cash. 

I know other companies have charged, PP may have gotten an exception as they are so big who knows?  I have seen it in small shops as well, they get away with it because WHO ya gonna call to report them? 

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Joined:
10/07/2008

Paypal charges more if you use a credit card vs a direct payment.

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gillumhouse's picture
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Joined:
05/22/2008

I just heard about this on the radio. Signs disclosing the up to 4% surcharge for using a credit card must be posted at the point of checkout. For now, I will probably keep things as they are. It is costing me almost $4 per night in fees. I may just raise my prices by a couple dollars (which will also raise the amount of my fees). I will have to see how it plays out before doing anything. I will continue to encourage cash & checks as I always have - especially since that does not cost me extra now since I do not have a minimum fee to meet.

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