nacho

Just saw someone wrote on FB that Canadian Marriott hotels have started charging 3% fee for using CC without proper signage.

Do I have to keep CAD 500 in my wallet just to pay for hotel deposit from now on? I don't even know how this affects car rental since they only allow CC.

Happy

Several years ago Australia have passed the laws to allow merchants capture the CC transaction fee. Many eateries would have a sign that if Paying by Cash, you get 3% discount. Essentially is you pay 3% higher if paid by CC. Since our CCs earn 3% rebate on dining, so it makes a breakeven transaction, more convenient than get the Australian $ to save the 3%.

I believe Marriott finally capped it at 1% but not sure about this since the last time we were in Australia was 2019. Westin there informed me about the CC surcharge.

Here locally in the good ole USA, our State also passed legislation to allow merchants charge 3% CC transaction fee - but so far the practice is only prevalent at gas stations which also need to show Cash Price on their billboards.
Other merchants simply continue the business as usual by having the cash paying customers bear the cost by way of not getting a discount.

Regardless, you pay the 3% one way or the other, visible or hidden. Really does not make much of a difference.

imverge

This is definitely another money grab... Hotels are NOT being charged 3% merchant fees.

I hope they are waiving it for Marriott branded credit cards.

nacho

Whether you pay more or not it's not as black and white as you think. It's not like in September a room costs $200 and since the law passed they reduced the price to $194. This is an excuse for merchants to put up the price legitimately. Plus the world is bigger than the US, here in Denmark we have a forex fee of 2% and rebate of 0.5% for the only one no annual fee credit card. If you want any benefits you pay a hefty annual fee, and you can get a free cc without any annual fee but they will rob you through a hefty forex fee from 2% and up.

They can charge whatever they want but when a business like hotel/car rental that requires authorization or credit card is the only form of accepted payment, I think they shouldn't be charging a fee for using credit cards. If I visit Canada again I might have to carry CAD 500 to use as deposit when I check into a hotel.

There's a better way, tell the banks to cap the fees, plain and simple. In Scandinavia we are going towards a cashless society and it seems like North America is going backwards.

Every time I tank with cash in the US and I was thinking gas stations must be a prime target of robberies, the till must have like thousands of dollars cash (20 cars per hour and each pay $20).

Happy

I am just giving you examples that the merchants DO NOT pass along the savings to the consumers as they claimed when lobbying to get the ability to add the CC surcharges.

The world indeed is much bigger than USA, but the total CC owners per population, the world is at a much lower % than in US - that is why the US merchants dont have the pull to add the CC transaction fee to each transaction - if they do, not only the customers would revoke, the banks, too. Therefore only gas stations practice this but only a few brands. Most remain the same, whether cash or CC payment, it is the same price. The only place I can see cash payment gains a lot more discount is in California at Arco stations, Atlantic Richfield The drawback is, they dont allow pay at the pump! And this is a practice for many many years long before any legislation. Customers value the cash discount, obviously are willing to accept the inconvenience to go inside to pay. I haven't in Cali for several years, so no idea if this long standing practice has changed or not.

What I am trying to convey is, how the market behaves is largely determined by how competitive a market is.

You got to realize, however the CC fee structures a country has, is completely the result of the market of said country - the US credit card industry is very very competitive, and the ownership of cards is ridiculously large number due to a lot of people own several cards and a family owning a doz credit cards among family members is nothing unusual. Given such highly competitive environment, the US merchants do not dare to take the legislation to charge surcharge - for if they do, they would lose far more customers than they gain back from those who care about the 2 to 3% difference.

That is also another reasons why CC sign up bonuses are so generous in US, multiple CCs have Zero forex fee, and earning on spend is so much better - that is comparing to cards issued by German banks, Australian banks, even Hong Kong banks - I have friends in all those places, who own CCs. Those markets are far less competitive than US, due to the very simple fact - the ownership of CCs is much smaller.

Marriott or any other chains have no power to make their property owners to waive credit card surcharge - who is going to eat the difference? Therefore it is up to you, the customer, to decide whether you would pay with CC with an additional 3% surcharge, in exchange for the convenience. Or, pay cash to save the 3% and accept the inconvenience to carry cash, or to withdraw local currency when you travel to Canada. It really is Plain and Simple.

You could argue with the rental car companies that since CC is the only form of payment, they should not charge surcharge... I wish you success on that. BTW, rental car companies do accept cash payment, at the time of returning the car. You definitely can inquire this possibility.

As for your opinion of tell the banks to cap the fee? This has already been done, back in 2008 or 2009 - to cap the transaction fee on Debit Cards. You know what happened then? Banks immediately experimented on levy an annual fee on Debit Card! When that was stopped by lots of outcry (because debit cards mostly are used by lower income people), banks then start finding ways to raise all sort of monthly fees - the outcome of that is essentially free banking is a thing of past. Now you either keep an amount in the account to meet the minimum to waive the monthly maintenance fee, or to pay a monthly maintenance fee. Even NO Teller Access accounts that were experimented for a while as no fee accounts, did NOT survive. Eventually such accounts also subject to monthly maintenance fee.

That is why I am saying, the operation costs are paid one way or the other. Whatever the Banks charge less, the merchants do NOT pass to the consumer of the saving while the banks actually due to the loss of revenues, would look for other ways to make up the losses - so you have the elimination of no or low monthly minimum balances accounts or the Senior accounts. Chase for example, does not offer Senior checking. It also promptly discontinued the Continental Debit Cards within weeks after Congress capped the transaction fee on Debit Cards.

The thought of "better way" is truly a very naive one. Sorry to say that.

Since we are on the topic of CC rebates - Canada actually has credit cards that earn 3% cash rebate on everything. My BIL has one of such card. US so far does not have any card that earns 3% rebate. 2%? Yes, there are a few of them out there.

tracon

Apparently the maximum allowable surcharge is 2.4%?

EdofFX

Is this limited to Marriott hotels in Canada? What about the other major chains in Canada?

I suppose I can avoid it altogether by redeeming points.

c224488

Where's the link? The maximum allowable is 2.4%. I call BS

HookEm

If you pay with a paper check, do you avoid the 3% fee?

c224488

What if I pay all in pennies? Would I also avoid the fee?

mahasamatman

Do you always believe what some random person posts on the King of Misinformation site? If it was posted on FB, we know how reliable that information is.

I have December reservations in Australia - it's 1.5% (and 2.0% in NZ).

Tell me more. I know of no such card.

There are no pennies in Canada.

c224488

I'm showing my age. Let's make it nickels instead.

Ghoulish

Actually the EU went backward some time ago by capping interchange fees, which is why your cards offer terrible rewards, anemic benefits, and annual fees are more common.

Studies have shown the ~2% interchange fees charged by credit card processors and used to fund the much higher levels of benefits for US cardholders are absorbed by merchants, and forcing them lower comes exclusively at the cost of consumers.

Gas stations have been permitted to offer cash discounts for some time.

Admiral Ackbar

FYI this is illegal in Quebec, merchants cannot pass on the fee

Happy

Bingo! That is why I say, one way or the other, the consumers pay. And it is those who use cash / debit cards who bear the most burden.

But the OP thinks they are going forward, yeah, cashless society WITHOUT much benefits to the consumers.
Personally I am very happy to be going backward to enjoy our 0% forex fee, nice rewards credit cards while still live a virtually cashless life. I could not remember when was the last time I use a single cash bill - everything here is payable by CC. There is truly no need to carry any cash.