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1932 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:23 PM
Original message
If you like a business, pay cash.
Just now I was reflecting on this thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2113108

It struck me that a lot of people might not realize that businesses split a merchant fee with credit card companies when cutomers put a purchase on a credit card. The less bargaining power the business has, the higher the fee, so a small business person is generally paying the largest merchant fees.

If you're a customer of a business you like, you can increase their receipts by up to 4% if you pay cash and you can reduce the receipts of credit card companies -- the largest and wealthiest businesses in America -- in the process.
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DoYouEverWonder Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:24 PM
Response to Original message
1. Checks are good too
but yes, it is nice not to have to pay the CC companies their 'cut'.
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CAcyclist Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 03:47 PM
Response to Reply #1
15. Most businesses have to pay Telecheck
to assure the check won't bounce, and that's 2-4% also.
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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:24 PM
Response to Original message
2. If there is evil and bears the mark of the beast, that mark is MBNA
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lindisfarne Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:25 PM
Response to Original message
3. It actually depends. For small value transactions, the cost and risk of
handling cash can offset the cost of the CC transaction.
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1932 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 02:58 PM
Response to Reply #3
12. If you like the business
(because you know it and are a frequent customer) I think there are fewer risks.
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charlie Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:25 PM
Response to Original message
4. Or if it's a business you don't care for
haggle for a discount for cash payment.
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1932 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 03:00 PM
Response to Reply #4
13. Or join a credit union and use their cards.
But I assume Visa/MC still get a nice % of a credit union's credit card business.
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CornField Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:25 PM
Response to Original message
5. Debit cards?
I'm one of those folks who doesn't like to carry a lot of cash around. I used my debit card almost exclusively.

My understanding is that the businesses I patron were not getting credit card fees when I do this (enter my pin), that is is similar to writing a check. Is this correct?
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Not Me Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:38 PM
Response to Reply #5
8. I read an article a while back that said there was a fee for ATM card
use, but it is about a third the cost of processing the same transaction as a credit purchase. That is why banks like Bank of America often run promotions offering prizes for random charge card use (or using your debit card as a Visa/Mastercard).

There is one caveat though, certain credit purchases carry different, often higher levels of legal protection to the cardholder.
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ayeshahaqqiqa Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:32 PM
Response to Original message
6. My company doesn't accept credit cards
It's cash or checks exclusively. With credit or debit cards, we would have to pay a fee to a company who would handle the transaction, and just getting started would be more in fees than the number of people who wish to pay with debit/credit cards. I'm in the pest control business, btw.
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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:37 PM
Response to Original message
7. (small) Blows Against the Empire
I use my debit card as a debit card (or pay cash)at independent retailers and as a credit card at chains just to cost 'em a few percent.
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Mutley Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:39 PM
Response to Original message
9. American Express has the largest fees.
Which is why many companies don't accept it. If you like a company, and you MUST use your CC for some reason, try not to use AE.
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WildClarySage Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 12:50 PM
Response to Original message
10. Make sure, if you do use a debit card, that you sign electronically,
using your PIN number- if you sign a paper receipt, the transaction is processed as a credit transaction, rather than a debit one, and the merchant fees are assessed as if it was a credit card, even though the money comes from your checking acc't either way.
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1932 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-27-05 03:40 PM
Response to Reply #10
14. Interesting.
I didn't know that.
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lcordero2 Donating Member (832 posts) Send PM | Profile | Ignore Tue Sep-27-05 01:03 PM
Response to Original message
11. even better
a lot of info comes up on credit card charges. Credit card companies sell this info to people like doubleclick.net, R L Polk, or J D Power and associates. Keeping credit/debit card charges to a minimum reduces this revenue stream.
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