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Am I being bold or stupid need help in my thinking?

N

Northeast Puller

Member
Am I being bold or stupid need help in my thinking?
I own and run a small True value hard ware store.
The cost of taking credit and debit cards keep increasing. I will have to upgrade my card machine for the new chip cards for around $800 bucks. This will be my third upgrade in 4 years. I by no means to the volume of cards like wally world does. So my transaction fees are high. I have shopped other venders and am at the best rate for my volume.
I think most store just pass the rising cost on to the customer. I have a problem doing that to my cash paying customers and in my eyes is not fare.
It is legal for me to pass on the transaction fees to the card holder up to 4 percent. I can configure the cash register to add it or not at my discretion. When you hit the credit card key. My average sale ticket is about $11 bucks. With big purchase I could add it or not. I could put a sign up telling people of the transaction fees and trying to be fair to my cash customers. At that point it is your choice to be a card or cash customer or should I just raise price to reflect the ever changing cost of taking cards and just move on?
How would you feel as a card customer and what would you do in that situation or should I just continue on like I have been doing?
 
Many gas stations have a credit price and a cash price. I know nothing of the legal aspect of it but if it is already being done in one industry I see no reason it cannot be done in others. I have also seen stores that have a minimum purchase amount before you can use a credit card to make a purchase.
 
I know here in Texas. Quite a few places charge you a little more for using a card. The feed store where I work does it. As the boss said I can't operate at a loss forever.
 
Some companies add a fee when using a credit card. On large purchases this quickly gets out of hand. People are swiping plastic more and that will only increase in the future. I do not purchase at stores that increase price if I use plastic. But then I don't know if it is already built into the purchase price either
 
Personally, unless you are situated in a very rural community as I am where there is only one hardware store within 25 mile radius, I would not shop at your store if you charged extra fees for credit cards. I do not carry much cash in my wallet nowadays because of all the crazies walking around with loaded guns. Instead I carry 2 credit cards, which I pay off every month, accumulating a credit score of well over 800. If I am robbed of a credit card, I can simply cancel it. Once cash is gone, it is gone. So you see that our obsession with guns does have a ripple effect, doesn't it?
 
That's a tough one, used to be told its illegal but I think its more a policy than actual law!!! I would price my items (like the gas station one) and put signs up 2-3% cash discount. In a retail business like that cards are a must and you could lose business if you don't take them. They do have a system to verify checks so you won't get burned on them. Also some places have a pre approved list for checks.
 
I could put a sign up telling people of the transaction fees and trying to be fair to my cash customers.

I like that idea, gives people a reason for the charge, people can be understanding if you let them know what is going on, not all though!
 
always best to leave it up to your customers.
raise your prices 4% across the board, give a 4% discount if paid with cash.

Coupon/rebate/discount shoppers like my dear departed Mother
would drive 50 miles out of their way to go to the bank for cash to get that 4%. lol.....and you won't have to hear the CC customers grumble.

My local auction does it now.
Always been a 10% auction fee.
Now, big sign says 13% auction fee, 3% discount for cash/check.
pretty funny....same ol fee....nice way to say..leave your credit card at home...
 
You might price all your merchandise for credit and give a discount for cash. This day and age you can't get away from credit. My son deposits his whole paycheck in the bank and pays for everything with a debit card.
 
The most fair way of doing it is to raise your prices 4% and offer a 4% discount on cash purchases. Is debit charged as a percentage like a credit card is? or just a flat fee?
 
Speaking as somebody who doesn't even have a credit card,why should I have to pay for somebody else being to irresponsible to carry enough cash? If there was an option,I'd bypass your store and go to one that didn't make me pay for somebody's "convenience".
 
We do not take credit cards ourselves. We offer to accept paypal with an added fee where the customer can use their credit card if they choose that route. Some have become so insistent that we accept credit cards over the phone that we stopped taking phone orders except from dealers or manufactures that are on open accounts.

Most people will use 3.00 worth of gas to keep from paying .30 more over the counter for a product. This puts a business like yours between a rock and a hard place. Very hard to keep customers if you mark every thing up to cover the increase credit costs. They will drive the extra 25 miles to save a few cents. You will have customers stop coming in if you advertise a fee for using a credit card and spend it on gas to drive the 25 miles. Those same people will be the first to carry a sign that the big box stores are killing small business and making them drive an extra 25 miles. I can't give advise as regardless of how you handle it you will take a bite from one or more segments.
 
Yes your going to held up at gun point by a LEGAL permitted person. Your more likely to be hit by lightening on a sunny day!!!!!
 
, I have long wondered why stores did not offer discounts for using cash. The 3-4% charged by the cc companies in actuality is giving the cardholder a 3-4% discount and the store owner a lower profit margin. NOW though, the shop owner does know he will get his money, so taking personal checks is not cash unless of course you know your customer. I did hear at the auction last Saturday, no charge for using your credit card, maybe the auctioneers just raised the % they charge to cover that. Don't know. gobble
 
(quoted from post at 07:34:05 07/21/15) Speaking as somebody who doesn't even have a credit card,why should I have to pay for [b:69e79f2f8a]somebody else being to irresponsible to carry enough cash[/b:69e79f2f8a]? If there was an option,I'd bypass your store and go to one that didn't make me pay for somebody's "convenience".
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That's a bit harsh. I usually carry $20-50 in cash on me. I use CC for gas (much faster transaction) and COSTCO requires it. I also use CC for most other purchases, out of convenience. If I leave the house with a list for HD or Lowe's, I don't have to guess on how much cash I'd need to pay for it. Many times, I figure a trip at $50-75 but walk out with a $200 receipt for any number of reasons. At auctions, I always pay cash because I pretty much know ahead of time what I'm looking at and what my top price is or I'm paying at pickup (online auctions).

Just using a CC is not irresponsible. Running up CC bills that you cannot pay is.

Like others have said, I think it's fair to post a sign saying 3-4% discount for cash. Then it becomes the customer's choice.
 
The dealerships I worked at had card readers. I think if you read your contract with the company that provides the reader adding a "transaction" fee could void your contract with them. Also charging a transaction fee for small purchases will drive many customers away. As a small hardware store your all ready fighting to just get people in the door. Your idea of a transaction fee could very well end your business. There are many people today that pay only with credit or debit cards. My youngest two sons almost never carry any cash. They use debit cards for everything. One of the local eating places stopped taking credit/debit cards. My sons used to eat lunch there 3-4 times each week. Now they eat at another place just because they do not carry much cash.

For us older folks it seems silly to not carry cash but to this younger generations it is very common. Also the sign with the fee will PO some people just by being there.

I will second just raising everything 3-4% and giving a cash discount. It would be easier to do and looks much better for everyone involved. You do not have to advertise that your raising prices just prior to that. As a matter of fact I would keep my mouth very quiet about it. Just let everyone of your cash customers "enjoy" a discount. It is a much better sale tool than "charging" certain people.
 
Credit Cards charge a fee but cash costs you too,going to the bank,having the possibility of an employee taking some cash and no robber ever comes in and says hand me all your credit card receipts.For your hardware store cash or check would be no big deal for me but with fuel I always use a Credit Card to keep records for me to keep purchases for tax purposes as I have a Credit Card I only use for fuel I take off my taxes and apply for
road tax rebate as I've found that the difference in off road fuel and on road fuel is always less than the actual tax.Plus I don't have to go into a station and pay for my fuel before I pump and I'd never know exactly how much fuel it would take for a fill up anyway.
 
A few thoughts there.

First of all - credit cards allow for a lot more "impulse" buying than cash - and buying extra things that a person never really intended to purchase when they went to your store to buy a bolt. So don't put up a wall to keep that from happening. NEVER punish a person for wanting to spend more money than they have at your store!!! In fact, you PROBABLY sell more "extras" than you realize due to credit cards, and those sales probably already cover your 4% fee quite nicely.

Next - let's say 50% of your customers pay with credit cards (for simplicity). If you want to spread the cost of cc charges across to all, you don't have to raise your prices by 4%, you'd only have to raise them by 2% (50% of 4%). If only 25% use credit cards, you'd only have to raise them by 1% (25% of 4%). So that doesn't avoid the problem altogether, but it certainly may reduce it to a point where it's more attractive to you. Of course, if over 90% of your customers use cc's then you do have to raise by 4% - but ... by default you'd have to do that anyways.

If you feel you must raise the prices for cc usage, do as somebody else here posted and call it a DISCOUNT for paying with cash. It's the same thing - but mind games work. Again I have to stress it - you never want to persuade somebody NOT to spend money they don't have in your store - a credit card is a wallet full of imaginary cash. (and don't forget to surround your register with "last minute" impulse buy items. :)
 
Plus places like Sam's Club are always about 10 cents a gallon cheaper on gas than anywhere else and you cannot use cash,they probably save the difference not having to have someone taking the cash for sales.Local Farm Bureau has a fuel store and fuel is available 24/7 when you have a credit card to pay for it and the store part is only open 7AM to 5PM
 
I am a small run one man buisness and i have had numerus calls wanting me to put in a machine to take plastic,but i refuse. I do use plastic a lot,I am forced to at times. Some motels will not take cash or checks.

I was told at one time many years ago that we would be paying for everything with a plastic card and I quess that time is very close.
 
ON SECOND THOUGHT WY NOT JUST RAISE PRICES 8% ACROSS THE BOARD AND NOT WORRY ABOUT IT. SEEMS VERY POPULAR IN MY AREA!!!!!!
 
Safest thing to do is raise all the prices whatever you need to come out even. Credit cards are here to stay. Don't know about your end but debit card transactions come out of my account the second that card is swiped. To me that makes it the same as cash.
 
(quoted from post at 04:34:05 07/21/15) Speaking as somebody who doesn't even have a credit card,why should I have to pay for somebody else being to irresponsible to carry enough cash? If there was an option,I'd bypass your store and go to one that didn't make me pay for somebody's "convenience".
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Just exactly how is my use of a debit card being irresponsible? I actually have instant access to every cent of money in my account, but not one penny more than I have. My debit card is exponentially quicker than writing a check, which is the same type of cash-replacement instrument. My debit card transaction is protected by the card-issuing company and can be cancelled instantly if lost or stolen, unlike your cash. In fact, my credit union eliminates my monthly fee if I use my debit card five times each month with an automatic deposit. And, my debit card does not cost the United States government anything to design, print, distribute and maintain, like your cash does. Sounds pretty responsible to me.

To the OP:
When I am asked "Debit or credit" I usually respond "Whichever is cheaper for you (the store owner) to use", typically the debit path. I understand the benefits of accepting CC/DC for an operation with larger average ticket and the punitive nature of your lower average ticket. There are proven increases in ticket averages of credit card buyers. When I see a sign offering a discount for cash, I often think of the nefarious tax-evasion reasons of a non-paper-trailed transaction. I would welcome a well-thought-out sign explaining the cash discount and the reason for it, but would most likely continue to use my irresponsible debit card.
 
CC companies tell their merchants NOT to give discounts for cash. I've asked many times for a cash discount and am told that their agreement with the CC company prohibits that.
 
The stop and rob in our one horse town offers two cents a gallon off your gas if you walk in. They assume you are paying with cash.

Don't advertise, but have the cashiers tell the cash folks they are getting 5% off for paying with cash. That's a little high, but cash purchases aren't usually the big things. It's a nice easy number and tells the cash folks it's worth it. Word will get out. I bet it draws business.
 
Don't know where you live, but I believe in NY it is illegal to charge extra for credit cards sales. It is not illegal to offer cash discounts. So most price their products to cover the credit card costs and then offer a 4% discount for cash. (if they offer any discount at all)
 
I used to have places that offered a cash discount. I don't know of any around anymore ? I Do not know what is legal to advertise or not either ?
I think the gun store advertises or used to ? an extra fee on gun purchases with credit card.
Now many places do not take certain cards like American Express or Discover because the vendor fees are higher than the others.
So I bet they all have raised prices quietly for everyone to compensate.
If it is legal ? you may just want to offer a cash discount ?
 
In my humble opinion I would just take the 3% loss and keep accepting the card. Many people have become so used to the cards that they carry very little cas. Case in point, my son in law and I were shopping in a big Rural KIng store and when we went to the check-out there was a long line as it seemed that the machine that processed credit card purchases was broken. When we asked if they could still take cash they said they could and we were directed around a long line to pay cash for our purchases.

There were at least 10 people still waiting in line after we paid and exited the store. Point, credit cards are to widely used and they can only increase sales and profits.
 
It is legal for me to pass on the transaction fees to the card holder up to 4 percent.

Yes but its suppose to be the actual cost are what the CC Co. charges you... Most just round the numbers off.

How do we know the cost :We don't: And they are not going to tell you how you would know when you take a card...

I can deal with the standard CC fee's its those Cash/Rewards cards that I take a hard lick on...

Most think it cost the Merchant nothing to do the transaction but most (all I deal with DO) understand when you explain it to them and are willing to share the cost for there convenience.
Convenience comes with a price charge for it... For those that shop at your store for there convenience, convenienced if you post a sigh that stated closed due to insufficient funds...

I don't know how those that do allot of CC sales keep up with it, it must take allot of time to reconcile all those sales... CC Co's are the villain not the Merchant :!: They are the biggest crooks I have ever dealt with...

Has anyone every thought about how much money they make off the same dollar as its passed around... Lets say I buy a part online and pay with a CC, I sell it to you and you pay with a CC they have collected fee's on the same money two times and the Merchant is suppose to suck it up... :twisted:

You are asking should I feel guilty "NO" convenience comes at a price its the cost of doing businesses... Of course it works both ways it can be good are bad for you the problem is you have to $educate$ yourself on the bad to figure out how the good parts fits your needs...
 
I knew I'd catch the devil for saying it,but I don't understand the concept of sending your money off to a third party every month to pay for things instead of paying for them before you walk out the door,anymore than I understand having a cell phone strapped to me every second of my life.
Just a whole different lifestyle I guess. One that I'll never understand at my age. To each his own,but charging cash customers extra to make up for people who refuse to carry cash is no different than a store charging me extra just because the next guy in line has a cell phone in his hand. That's his choice,let him pay for it.
 
One of the most important rules in retail is positive policies play well and negative ones bring much negativity back in return. Set a policy to offer a cash discount or otherwise sell at the tagged price. The corollary to this is make sure you are charging enough to start with so the cash discount does not kill net profit.
 
It eliminates the whole need to have enough cash on hand and budget your expenses so you don't spend more than you have on hand doesn't it?
I have a debit card that draws money from my checking account when I need to order parts,or want to stay in a motel or some such thing,but let's face it,having access to credit any time you want to buy something you can't afford takes away some of the responsibility of having to have enough money on any given day. If you have more than you're spending on your card every single time you use it,good for you,but you know that's not the case with the vast majority who use them. I stood at the counter at Worthington Ag Parts one day and watched a woman have to use three cards to come up with enough credit to buy a $500 part. The day that I didn't have that kind of money,I'd be tempted to end it all.

Even using checks can be a pain. The wife's laptop died a few weeks ago,so we went to Wallyworld to get a new one. The machine that's supposed to process checks kept spitting mine back out. The woman kept smoothing it out,trying it over and over. I finally got disgusted and got out my wallet. I counted out cash nearest enough to the exact amount that she only had to give me six cents change. Beats the devil out of using three different credit cards to come up with enough money doesn't it?

And what the heck? Now using a credit card is more patriotic than using cash because it costs taxpayers money to print more money? Oh well,just put it on your card.
 
Did you know that when you put your tip at a restaurant on a card the owner generally deducts a hefty portion for "handling". One place my daughter worked at deducted 10%. Add in tip pooling and the server ends up with a fraction even if she/he provided outstanding service. Maybe that's why we get bad service sometimes. This doesn't really go to northeast puller's question but it is food for thought, so to speak.
 
Having been in the lumber/hardware and building businesses for 30 years, I would say that credit cards are part of the cost of doing business. I'm sure you are familiar with variable pricing and what affect price perception does to your inventory turns and ultimately margins and bottom line. Do It Best/HWI had a program for reduced equipment and credit card processing fees for their members and would be surprised if True Value didn't offer their members the same. Negotiate better fees with your bank/buying group as the banks are the culprits here - not your customers.
Operating a lumberyard, I had to have open credit, by necessity, for my contractor customers as they were in and out of the yard several times per day (good) and had frequent deliveries to their job sites. I would have accepted credit cards in a heartbeat over the open credit line with associated high collections costs, liens, etc.
 
It doesn't bother me if I know it coming in the store.

I'm aware enough of the costs of cards, they hit you with a swipe fee and a % fee and the cost of hardware..... It sure adds up on you small retailers.

I'm probably good with a 2% difference; a 4% difference seems like a lot to me, and is wonder about the store. I get it, but psychologically over 2% difference plays with my head, just telling you how it is.

Also, a 2% discount for cash works better in my head than a 2% surcharge for a card. It shouldn't, but it does. This means you mark everything in the store up 2%, which I know isn't great either......

Paul
 
Have you tried Costco? I know it sounds odd but (in Canada anyway) we have our POS unit through Costco...which is really just a broker for ING/Elavon (sp), or some subsidiary. Once signed up Costco has nothing to do with it. Fees are much less than any of the banks could offer...

Service has been pretty good. Their help line gets me someone either in Ontario, Canada or Georgia, USA. Units are shipped fast and I just pay a monthly fee...I could buy it outright but its kind of like leasing.

Good Luck, Grant.
 
Sorry, don't mean to be a smart a__se here but it seems to me that if the viability of your business hinges on a 4% profit hit you have to take on some of your sales then maybe the credit fees are not your major problem. (I've never run a business so I'm probably just talking through my hat.)

If you feel you have to raise your prices do it gradually, like 1 or 2 % whenever you restock. Everyone else is doing it so we are getting used to it. I know my wife would be shocked if we went grocery shopping and everything was still the same price it was last time we went.
 
So...what percentage of profits is the cost of taking the credit cards? I'm asking the question this way because, in my eyes, that's the fair way to increase prices. If your costs per credit card transaction pencil out to 4% of those transactions, what percent of sales are credit card vs. cash?

Just like the electric bill or the gas bill going up, the costs associated with accepting credit cards is simply a cost of doing business. It goes against your bottom line. The guy buying a $1 item pays toward your light bill the same way a guy with a $300 order pays toward your light bill...cash OR credit. The guy with the $1 item may not "use" much of your time and electricity, but he still pays.

Offering a discount for cash may also create a "perception" problem with customers. They may think you're having trouble paying your bills, and need cash to get out of a jam. That can be a negative perception, in these days of folks gambling away entire businesses at casinos and wasting their lives using illegal drugs. Just had a local garbage collection company go belly-up when the owner was arrested on drug charges, AND had been seen losing large sums at the local casino. And of course, right before the end he was offering a discount to customers who paid in cash.

just something to think about.
 
Increase your markup 3% and offer 3% discount for cash. More and more merchants are now giving cash discounts. It also give them a little wiggle room with the IRS. :)
 
You are not alone in this boat.

As part of the trophy husband agreement, Nancy provides me with all the cash I want whenever I want it.

I pay cash for everything and have never been turned away from a checkout counter.

Both my social security check and retirement check are deposited in her checking account.

I do not even use checking account.

No checks to write, no minimum balance to maintain the account, and no checkbook to balance.

Rumor has it that if a social security recipient cannot balance their checkbook, then the government will take away their guns, but that is another "poofable" YT topic.

Once went to a local truck stop to buy diesel for my truck.

Lady at the checkout counter told me that she needed to see some form of ID before she could turn on the pump.

Told her that I was Ulysses S. Grant then handed her a $50 dollar bill.

Oh yea, also don't have a cell phone.

If I want to talk to someone, then I'll go see them.

So what do I do if there is an emergency?

Guess I'll have to scream loud enough that my neighbor will hear me.

Even then he might not come see me.

Guess both you and I will be up the creek when his majesty the king implements the digital dollar program on October 15th.
 
Thirty years ago some local stores offered a cash discount equal to their credit card fees. The store owners were up front and were not shy to explain why (at length) to anyone who asked. An extra credit card fee might be discriminatory, where as cash discount might not be because it is a normal business practice. The down side of a discount would be that your advertized prices look higher. I would check with a local attorney before making a major change to make sure you stay within your state and local laws.

Many younger people I know use credit cards for almost every purchase, they carry very little cash and don't carry a check book. Now-a-days even pop and candy machines take credit cards. Their credit card companies rebate between 1 to 3 percent of all purchases back to the buyer. That's a good bargain for consumers and hard to argue against. A cash discount would not mean much to them, unless it is higher than their rebate. I think the trend to using credit cards will continue to increase.

I would increase prices to offset credit card fees, and consider a cash discount. Maybe post an "Ask about our cash discount" sign at your checkouts.

Can you bargain with the bank or credit card company to waive your upgrade fees?
 
I guess when you buy gas from a store you're still dealing with a '3rd party' instead of paying the oil company directly.Credit cards save me money and time with book keeping and I can buy car diesel at the local Sheetz station for about what the local supplier of Off Road diesel gets then I apply for the tax rebate to get the money back I paid in road tax when I bought the auto diesel.And then I have a paper trail and don't have to keep up with receipts each time I buy fuel because I use their Sheetz customer card and Sheetz credit card they give me 5 cents a gal discount on the bill.Guess you cash fellows are giving me that 5 cents.Thanks Boys!
 
I know that at one time in Ohio, it was illegal to charge extra for using a credit card, but giving a discount for using cash was legal. It may still be that way. You might want to check your state's laws to see what their position is on that.

If I was running a business, I think I'd rather do the discount for cash rather than the extra for using a CC. It looks better to the customer, as you are 'rewarding' them rather than 'penalizing' them.
 
Our local hardware store runs credit through John Deere credit. We charge everything. Oil distributior I usted to work for. Loved credit cards. Money was put in his account that day. Took up to a week otherwise. (Checks) and someone had to drive to bank. Also Marathon debited his account every time a semi loaded fuel. We took credit cards at the farm. He was very successful! Also paid me well!
 
Somebody else touched on this, but I think it's worth looking into.

True Value as a franchise - one would think - could get a lower rate for their franchisee's if they all ganged up and gave their CC transaction business to one company. (not sure how that'd work across state lines, but at least at the state level).

I don't know the brick&mortar side of this, I run a strictly online business. But we pay a little less than 2.5% because we do a few million per month in transactions. As you know it's hard to compare side by side - there are all the little extra fees thrown in to confuse comparison shopping for cc processing services - but the bottom line is there's the potential to cut that rate down significantly if you could increase your volume.

I would think true value stores could get that kind of volume power through a coordinated effort - have a credit card processor compete for your combined business. I can't see why they wouldn't.

Even if it's just one percent, or even half of a percent, I think it'd be worth the effort.

OR... do they dictate who you have to use, and take a slice for themselves??? I'm curious.
 
legal to charge extra or different price for credit card? Or a contract that says merchant can't discriminate in pricing? The case law is Sears V MasterCard 7th circuit about 1974. MasterCard had a contract clause about different pricing not allowed, Sears had different pricing for their cards and Mastercard complained--so Sears put a big notice at cash registers for customers and MasterCard tried the court route-and lost big time. Private contract clause in restraint of interstate commerce is not enforceable, attempts to enforce may lead to court costs and legal fees awarded to the merchant being picked on by credit card company. Cash discounts in most states allowed to be posted, merchant card pricing less than main credit card pricing allowed- do you see where Menards Card price is about 1/2% less than VISA and sometimes 2% less than MasterCard? - legal. Accomidating ATM machines in Kwik Trips for the cash needed- they aren't Kwik trip and any fees charged are from CC company. Local tire shop has a sign saying American Express user WILL be charge 8% handling fee, any complaints are to be taken to the bank and the banks lawyer when he calls will be told to bring a set of tires and wheels and prove they can mount them at the bank-HUH!?. Tire shop won't do bank business for American Express unless American Express agent/legal rep will do the tire job, don't like it here is State Attorneys number and we can get a conference call- and that is going to cost you $200.00/hour and the state will help collect it by pulling the law license for frivolous law suit or threats to file. AmEX card holders usually pay cash afterwards, The states attorney tells them the Sears V MasterCard case and says any 'honest' lawyer knows it. The merchant that quotes the case usually has credit card reps get nervous- unless a state law has been passed that address different pricing and notice at cash register with notice of Sears V MasterCard then any attempt to enforce a no different pricing, merchant eats the fees clause can get the credit card company in expensive trouble- the simple way courts prefer is simple cancel whole contract. A couple merchant associations have told the credit card companies that they'll take the new cards IF credit card company provides the equipment- otherwise they go 'third party' and add extra fees to the bill and tell customer why. Interesting things coming soon- The Amish cash box may make a comeback next to the ATM machine.
 
The wife will be making a lot more trips to town the day I can't open my wallet and pull out some Benjamins to pay for things.
As far as the cell phone,there's play time,then there's time to work and I'm not so starved for attention or important that I need to be bothered whenever somebody has some trivial thing that they think I need to know.
 
How do you know they're not hitting the key on the register that the OP mentions ,so that you're only getting a discount from a price that's jacked up in the first place because you're using a card?
 
Local ace hardware gives us a 10% discount if we use the farm account. Perhaps could just give cash customers a discount instead of adding to the credit card purchases. Just increase overall prices a small amount to cover it.

Donovan from Wisconsin
 
Local ace hardware gives us a 10% discount if we use the farm account. Perhaps could just give cash customers a discount instead of adding to the credit card purchases. Just increase overall prices a small amount to cover it.

Donovan from Wisconsin
 
A general comment. If posting a buyer's "premium" or fee via a credit card is supposed to be illegal then how do auctioneers get away with announcing a paid premium for credit cards at the start of a sale?
 
I never deal with the people in the store all the transactions take place at the pump and I know how much the fuel is on the pump and on the bill its says X gals for X price then at the end its discounted the 5 cents a gal.Never having to go in the store saves me time and saves them money because they don't have to have someone there to take my money.
And I have a BP credit card any purchase I put on that card fuel,parts,anything I buy with it I get 3% back on the total amount when I buy fuel at a BP station,the discount shows up on the pump.Say I buy $2000 worth of parts and charge it to the BP card I'll get
$60 back in fuel better than nothing.
 
I keep the cell phone turned off until I want to use it,nice to have if I have a breakdown or need a ride back to the house,need a part or something when I'm baling hay 5 miles from home.
 
I'll carry it in a case like that or if I'm on the road,but any other time,not a chance. I don't know how anybody gets anything done with a phone glued to one hand and a bottle of water in the other.
 
as much as you might want to, resist the urge to charge extra for your CC customers. Even if it is allowed in your agreements, you will be shocked by the drop off in business. Even offering a cash discount will irritate a lot of CC customers and as long as you are making money on the CC customers you do not want to drive them away.
 
You will loose business if you do not accept the card.

I am the worlds worst at balancing a check book. Just dont do it. So my wife takes total care of all that. I have a debit card. I never, never write a check. I rarely have more than $10 or $20 cash in my pocket. Some days I will go a week with less than $10 cash. But think nothing of hoping in the truck and going for something 100 miles away. Whatever I need, i put it on the debit card.

If I do need cash, I swing by the ATM. My wife does all the banking by internet, so she checks the balance and such every day or so. Only way we could survive without me causing a divorce.

BUT, given the choice, if I knew I was going to your store, I would bring cash to get the discount.

Gene
 
(quoted from post at 12:34:05 07/21/15) Speaking as somebody who doesn't even have a credit card,why should I have to pay for somebody else being to irresponsible to carry enough cash? If there was an option,I'd bypass your store and go to one that didn't make me pay for somebody's "convenience".
Click to expand...

That's hilarious. Costs are part of the price you pay and since most stores do not offer a cash discount, you are paying for folks to use a card whether you realize it or not.
 
I don't like taking them, but it's the cost of doing business. My business is different than yours, I don't advertise that I take them, but there sure are people that ask and have to. In retail, I would think you'd have to. Maybe some smaller price increases to pay for the usage, if you need to to make your budget work. Or do what I was ready to do last Friday, go to work for someone else!!
 
I know,that's the point. That's what the OP was asking. He has the choice of passing it on to all customers or just using a key on the register to pass it on to card customers.
 
There's not really any saving to the business for having accepted your cash anyway... you put cash on deposit here at any bank and they charge you a percentage to handle it the same as the CC companies charge for the use of their service. On volume the fees would be similar.

Rod
 
I'm not 100% sure, but my hardware store seems to charge taxable for cc purchases, and no tax for cash. Local tax is 6%. Their prices have gone up a bit, and it got me wondering if that was why.

Another local store doesn't take credit cards, but has an ATM in the corner and lets the bank sort it out.
 
(quoted from post at 15:53:20 07/21/15) I don't like taking them, but it's the cost of doing business. My business is different than yours, I don't advertise that I take them, but there sure are people that ask and have to. In retail, I would think you'd have to. Maybe some smaller price increases to pay for the usage, if you need to to make your budget work. Or do what I was ready to do last Friday, go to work for someone else!!
Click to expand...

I must live in a different world from some of you guys. We had direct deposit at work 30 years ago. I seldom see cash. My wife's biz is almost entirely credit and checks. A lot of days she will not see a single dollar in cash. If we didn't take credit cards, we would not have a business.
 
In VA ag supplies like parts,twine,oil etc are sales tax exempt,so I asked at several parts stores about getting the exemption when I buy parts,oil,filters etc when I buy from them, National Chains wouldn't do it local supplier which I deal with anyway said fine but wanted me to open an account for their accounting purposes.So fine I now just pay their bill at the end of the month and I'm getting a better discount on parts than before with no sales tax added on farm purchases.Pays to shop around sometimes.
 
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