Originally Posted by
cbn42
It will be interesting to see how this plays out. For too long, cash-paying customers have been subsidizing credit card customers, because of the fact that the credit card networks have monopoly power and could essentially set the terms. Now, due to a combination of lawsuits and legislation, that is changing.
If surcharges become common in the US, I think they will be limited to low-margin retailers. Currently, they are often found at gas stations, which is a very low-margin business. Perhaps discount supermarkets like Aldi will start surcharging, but I don't think department stores or high-end restaurants will do it since they have a comfortable profit margin and not upsetting customers is more important for them.
As for rewards, the game will become more complex. If the merchant is in a 5% category, or the purchase produces miles/points that the customer values highly, then paying the surcharge may be worth it. This could create more opportunity for those who are able to find the loopholes.
Cash paying customers? Someone doesn't know the value of a, "cash paying customer". They are usually the poorest or least loyal customers.
If they wanted to offer a cash discount, I would accept that. But a surcharge means more calculating to determine value.
The hot dog merchant disclosed to me that a company was going around offering a program where there are no fees whatsoever to use their terminal. Once he signed up is when it was disclosed that he was under a 4 year agreement and that they add on the cost to the consumer.
Paying $2.50 for a hot dog is a high priced hot dog. All of his prices are on the upper end. The cost should be absorbed in his cost. Doing this has made me decide, to go somewhere else. I can take it or leave it, I chose to take my credit cards and leave his food behind.