Credit card fockery...

[Cloaca du jour 2,149]

Restaurants and businesses in my area, a suburb of pittsburgh, suddenly now have 2 pricing scales.  Cash is cheaper and they pass the CC charges to the customer.

So dinner is 40 dollars cash...or 42 dollars if I pay with a visa or similar debit card

When did this become a thing??

I recall businesses having a charge if u buy less than say 10 dollars and want to use a card.  But wow..every place now is upcharging.  

Makes me wonder if it is subtly trying to encourage people to use more cash to avoid digital tracking.

[Strike 5,538]

1 minute ago, Cloaca du jour said:

Restaurants and businesses in my area, a suburb of pittsburgh, suddenly now have 2 pricing scales.  Cash is cheaper and they pass the CC charges to the customer.

So dinner is 40 dollars cash...or 42 dollars if I pay with a visa or similar debit card

When did this become a thing??

I recall businesses having a charge if u buy less than say 10 dollars and want to use a card.  But wow..every place now is upcharging.  

Makes me wonder if it is subtly trying to encourage people to use more cash to avoid digital tracking.

 

More likely it has to do with inflation.  They've raised prices as much as they feel their consumers will bear and are now just passing on fees that in the past they were more able to absorb.

[Hawkeye21 2,399]

It's been happening more and more over the last few years.

[Ultra Max Power 214]

1 minute ago, Strike said:

 

More likely it has to do with inflation.  They've raised prices as much as they feel their consumers will bear and are now just passing on fees that in the past they were more able to absorb.

Pretty much nailed it.  Companies are charged a small fee to run your credit payment. Like 3-4% irc. Then some cards give you 2% cash back to use credit.  

I hate the cheaper with cash option, but at the same time the places that aren't offering that have already billed you for it.  

[Mike Honcho 5,269]

 

Yes, a restaurant can charge different prices for credit cards and cash

Merchants apply these fees or discounts because they must pay a processing fee for every card payment they accept. Credit card payments come with far higher processing fees than debit card payments. Surcharging is a way to pass on this fee to the consumer, and in the case of discounting, the merchant is passing on its savings from avoiding this processing fee to the consumer.

[Ultra Max Power 214]

My local gas station is .10 cents cheaper a gallon if I pay with cash. Its a nice discount, but not enough to make me carry cash all the time.  

[Hardcore troubadour 15,414]

Where is the consumer protection board? Elizabeth Warren, looking at you. 

[GutterBoy 2,899]

At gas stations, I get 5% back from AMEX, so the credit option is still cheaper.  Restaurants, I get 3% back, so it's a wash.  Depending on CC offers it's usually more too.

[Hardcore troubadour 15,414]

I have seen printed on the menu a request to tip in cash. Not even hiding it. 

[Hawkeye21 2,399]

4 minutes ago, GutterBoy said:

At gas stations, I get 5% back from AMEX, so the credit option is still cheaper.  Restaurants, I get 3% back, so it's a wash.  Depending on CC offers it's usually more too.

AmEx is the worst for fees.  They charge businesses upwards of 6% on transactions.

[GutterBoy 2,899]

1 minute ago, Hawkeye21 said:

AmEx is the worst for fees.  They charge businesses upwards of 6% on transactions.

Yeah many of the smaller businesses won't even take AMEX.

[Hawkeye21 2,399]

Just now, GutterBoy said:

Yeah many of the smaller businesses won't even take AMEX.

I don't blame them.

[GutterBoy 2,899]

1 minute ago, Hawkeye21 said:

I don't blame them.

They give me 5% back on Gas, Supermarket and Pharmacies, no limits.  It's a great benefit.  They don't even offer this card any more.  Otherwise there is always an offer for a great cash back.

Nerdwallet gives you a good summary of the best offers available.

https://www.nerdwallet.com/m/credit-cards/excellent-credit-cards

[Hawkeye21 2,399]

2 minutes ago, GutterBoy said:

They give me 5% back on Gas, Supermarket and Pharmacies, no limits.  It's a great benefit.  They don't even offer this card any more.  Otherwise there is always an offer for a great cash back.

Nerdwallet gives you a good summary of the best offers available.

https://www.nerdwallet.com/m/credit-cards/excellent-credit-cards

I like my Amazon credit card.

[Mike Honcho 5,269]

39 minutes ago, Cloaca du jour said:

Restaurants and businesses in my area, a suburb of pittsburgh, suddenly now have 2 pricing scales.  Cash is cheaper and they pass the CC charges to the customer.

So dinner is 40 dollars cash...or 42 dollars if I pay with a visa or similar debit card

When did this become a thing??

I recall businesses having a charge if u buy less than say 10 dollars and want to use a card.  But wow..every place now is upcharging.  

Makes me wonder if it is subtly trying to encourage people to use more cash to avoid digital tracking.

Restaurants generally don't have high margins, most average around 5%.  So, yeah, if they can save the 3-6% on CC fees(by discounting for cash)-or can add it back as a surcharge, a lot will do just that. 

Don't see it being related to inflation at all. 

[GutterBoy 2,899]

3 minutes ago, Hawkeye21 said:

I like my Amazon credit card.

Got one of those too, but its only used for Amazon, 5% back.  Also target card is 5% back.  Basically if you're not getting 3-5% back these days you're an idiot.

[Strike 5,538]

7 minutes ago, Mike Honcho said:

Restaurants generally don't have high margins, most average around 5%.  So, yeah, if they can save the 3-6% on CC fees(by discounting for cash)-or can add it back as a surcharge, a lot will do just that. 

Don't see it being related to inflation at all. 

Really?   Follow my logic here.  The statement in the OP is:

 

Quote

Restaurants and businesses in my area, a suburb of pittsburgh, suddenly now have 2 pricing scales

Notice the bolded.  This word suggests that in the past they didn't do it.  So now, out of the blue, a bunch of businesses almost simultaneously are doing something they didn't do previously.  What changed?  AFAweK their fees from the CC companies haven't changed.  The likely scenario is that their costs have changed and at some point they felt by continuing to increase their prices their customers would blame them and think they are gouging.  Normally, companies will absorb some level of increased costs.  But when it becomes too much they have to pass those costs along to their customers.  By keeping the same prices for cash only but letting customers know that they will now be paying the CC surcharge instead of the business, they're essentially raising prices while deflecting the blame for that increase to the CC company.

[GutterBoy 2,899]

TBH, I started seeing this coming out of covid, as a way for businesses to recoup some lost profits, and has held since inflation.

I've also seen restaurants raise their prices following both covid and inflation.

[RogerDodger 798]

BoA 3-2-1 Card with 75% Platinum booster: 5.25% Gas (plus Fred Meyer gas points), 5.25% Restaurants, 3.5% Grocery

Chase Amazon: 5.0%

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[Mike Honcho 5,269]

18 minutes ago, Strike said:

Really?   Follow my logic here.  The statement in the OP is:

 

Notice the bolded.  This word suggests that in the past they didn't do it.  So now, out of the blue, a bunch of businesses almost simultaneously are doing something they didn't do previously.  What changed?  AFAweK their fees from the CC companies haven't changed.  The likely scenario is that their costs have changed and at some point they felt by continuing to increase their prices their customers would blame them and think they are gouging.  Normally, companies will absorb some level of increased costs.  But when it becomes too much they have to pass those costs along to their customers.  By keeping the same prices for cash only but letting customers know that they will now be paying the CC surcharge instead of the business, they're essentially raising prices while deflecting the blame for that increase to the CC company.

That does have some merit. 

Inflation might have cut their already slim margins to the point that the 3-6% charged by credit cards is causing them to be unprofitable on credit card transaction. If that's the case though, they are also making less on cash transactions too and need to increase the price of their food. 

Or it can be a combination of both. 

[MLCKAA 573]

The best restaurant in Indy now charges a 2% kitchen gratuity, which I think is a scam to top all scams.

However, it’s the only place I want to dine out, so I pay it and move on.

[Mike Honcho 5,269]

2 minutes ago, MLCKAA said:

The best restaurant in Indy now charges a 2% kitchen gratuity, which I think is a scam to top all scams.

However, it’s the only place I want to dine out, so I pay it and move on.

Isn't that included in the focking price of the food.    

When I worked in the kitchens - it varied - but most often the kitchen would get split 10% of whatever the waitresses were tipped. 

[Thornton Melon 620]

1 hour ago, Ultra Max Power said:

My local gas station is .10 cents cheaper a gallon if I pay with cash. Its a nice discount, but not enough to make me carry cash all the time.  

In my area, I've only seen the cheaper cash price with gas stations, never restaurants or other businesses. I guess I'd better keep an eye out for this now. 

[MLCKAA 573]

3 hours ago, Mike Honcho said:

Isn't that included in the focking price of the food.    

 

You would think so.

[edjr 6,580]

4 hours ago, GutterBoy said:

At gas stations, I get 5% back from AMEX, so the credit option is still cheaper.  Restaurants, I get 3% back, so it's a wash.  Depending on CC offers it's usually more too.

Yup  

[Twinsdad 55]

A local restaurant has a clever way of presenting it.  The receipt showed the final price and then a lower price if you paid with cash.  Same sh!t, just presented it in a different way.  Now you feel like you're getting a discount instead of paying a surcharge.

[seafoam1 3,017]

I like to pay the bill with cash and leave a tip on a credit card.

[Cloaca du jour 2,149]

18 hours ago, seafoam1 said:

I like to pay the bill with cash and leave a tip on a credit card.

I hope this is a jest