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Credit cards vs cash

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Morticia

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The Dodd-Frank Wall Street Reform Act includes these provisions...note you now CAN charge less for those paying cash: (I am verifying that it does include lodging and not just 'retail')
There are two retail electronic payment acceptance reforms that take place immediately with the signing of the Dodd-Frank Wall Street Reform and Consumer Protection Act. One would provide retailers greater protections from card network fines in offering discounts or incentives for using cheaper forms of payments. The second would allow retailers to set minimums, not to exceed $10, for the use of a credit card. Swipe fee reforms in the Dodd-Frank Wall Street Reform and Consumer Protection Act limit the ability of the card networks to impose fines on retailers who choose to implement either of these practices. The effective date of these reforms is July 22, 2010.
Discounting/in-kind incentives: The first reform is that a card network shall not inhibit the ability of any person to provide a discount or in-kind incentive for payment by the use of cash, checks, debit cards or credit cards, provided that discounts for debit cards and credit cards do not differentiate on the basis of the issuer or the card network, and provided that the discount is offered to all buyers and disclosed clearly to the extent required by federal and applicable state law.
Minimums on credit cards: The second reform is that a card network shall not inhibit the ability of any person to set a minimum dollar value for acceptance of credit cards, provided that the minimum does not differentiate between issuers or card networks, and provided that the minimum does not exceed $10. Probably the most important news for us is that the debit card "interchange" fees paid by merchants to card issuers would be capped by the Federal Reserve at a "reasonable" level under an amendment that was included in the final bill.
 

domsmom

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Thank you for sharing this important information!
 

swirt

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Great info. I had see just recently that a few gas stations around here are charging more if you use a credit card. I had a feeling something changed. Thanks for confirming it.
 

One Day

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You can offer a discount for cash.........what you can not do is.......Charge more or an additional fee for credit card use...........always been that
Now it appears that fees are being scrutinized
 

Banana

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I didn't know anything about what you've posted. I always understood it was okay to give a cash discount, but not charge more for credit card use. It's all the same thing, just the verbage. I've only recently (since my no shows and cancellations in the last couple weeks) been giving a cash discount, primarily to avoid the processing fees. I changed my confirmation email to reflect the cash discount and asked that they bring correct change. The cash price is listed directly under the credit price on the confirmation.
 

Don Draper

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Most folks had a clause in their cc processor contract that stated you could not give a discount for cash or charge more for cc users. Now evidently it's ok. I've noticed the trend with gas stations too. Good, I hope this causes the cc's to lower their fees to stay competitive.
 

One Day

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Rupert......
CC companies don't want you to offer a discount for cash......cause they don't make there fees.
I've been taking CC's for 20 years.....never saw a clause in the CC agreement regarding cash discounts....
What the consumer protections laws are.....in brief.....that the merchant can not tack on additional charges or a fee to the patron for using a credit card.............what the merchant can do is......provide a discount off their regular price for payments other than the CC....
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
Basicaly the consumer protection laws do not allow the merchant to tack on fees or additional charges cause of fees they have to pay.....or for any inconvenience or extra work they encounter........this very thing applies to an aspect of my work.........I can't charge a higher rate cause the customer does not opt out of what would cost me a bit more to perform that duty or the added work as a cause of it........I can offer a discount of my regular price to entice them to opt out...........the way i see this for me, is that I just had to increase my rates regardless.
 

swirt

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Rupert......
CC companies don't want you to offer a discount for cash......cause they don't make there fees.
I've been taking CC's for 20 years.....never saw a clause in the CC agreement regarding cash discounts....
What the consumer protections laws are.....in brief.....that the merchant can not tack on additional charges or a fee to the patron for using a credit card.............what the merchant can do is......provide a discount off their regular price for payments other than the CC....
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
Basicaly the consumer protection laws do not allow the merchant to tack on fees or additional charges cause of fees they have to pay.....or for any inconvenience or extra work they encounter........this very thing applies to an aspect of my work.........I can't charge a higher rate cause the customer does not opt out of what would cost me a bit more to perform that duty or the added work as a cause of it........I can offer a discount of my regular price to entice them to opt out...........the way i see this for me, is that I just had to increase my rates regardless..
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
That no longer applies. Gas stations now can charge two different prices and many are, and so can everyone else.
 

One Day

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Rupert......
CC companies don't want you to offer a discount for cash......cause they don't make there fees.
I've been taking CC's for 20 years.....never saw a clause in the CC agreement regarding cash discounts....
What the consumer protections laws are.....in brief.....that the merchant can not tack on additional charges or a fee to the patron for using a credit card.............what the merchant can do is......provide a discount off their regular price for payments other than the CC....
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
Basicaly the consumer protection laws do not allow the merchant to tack on fees or additional charges cause of fees they have to pay.....or for any inconvenience or extra work they encounter........this very thing applies to an aspect of my work.........I can't charge a higher rate cause the customer does not opt out of what would cost me a bit more to perform that duty or the added work as a cause of it........I can offer a discount of my regular price to entice them to opt out...........the way i see this for me, is that I just had to increase my rates regardless..
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
That no longer applies. Gas stations now can charge two different prices and many are, and so can everyone else.
.
swirt said:
Remember when gas stations had a credit card price and a cash price?.....today....this no longer applies.....all forms of payment are at the lower price........I'm not sure, think they lowered the fees on gas purchases
That no longer applies. Gas stations now can charge two different prices and many are, and so can everyone else.
No gas station within 20 miles of me has two different prices.......one price cash or credit
The statement of can charge different prices..........yes.......as long as it is marketed as a cash discount.........not an additional fee.....credit card fee or any language that would indicate that the consumer is being penalized for using a CC
 

Copperhead

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Interesting, I just did a search on this Act and this forum thread came up on the first page.
 
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