Help me please
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I have been to a few locally owned stores and bars that have two prices on the receipt. Paying with cash and then the higher credit/debit price. It was explained to me that the cash price is the actual cost, and the credit/debit price includes the fees the credit/debit card company's charge the business owner to collect his money.
This has opened some of the consumers eyes while pissing others off. Then one owner said that with the rising cost of supplies "I am trying to keep my prices down for everyone". If you want to pay him with plastic that's OK but you're paying the processing fees for your convenience.
Anyone else seen this?
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The practice of offering different prices for cash and credit/debit payments is known as ""cash discounting"" or ""surcharge pricing."" It has become more common in some businesses as a way to offset the fees charged by credit/debit card companies to the business owner.
Here's a general understanding of the practice:
Cash price: The cash price represents the actual cost of the product or service. Since cash payments do not incur transaction fees for the business, the cash price is typically lower.
Credit/debit price: The credit/debit price includes the additional amount to cover the fees charged by credit/debit card companies. These fees can vary based on the type of card, the transaction amount, and the agreement between the business and the card company.
The rationale behind this practice is to provide customers with the option to pay a lower price if they choose to use cash while passing on the transaction fees to those who use credit or debit cards. Some business owners believe that this helps them keep their overall prices lower, as they are not absorbing the costs of processing fees.
It's important to note that the legality and acceptance of cash discounting or surcharge pricing can vary by region and country. Some jurisdictions have regulations governing the practice, while others may prohibit or limit it. It's advisable to check local laws and regulations to ensure compliance. I strongly advise you to pay attention to possible fees when issuing payment cards.
As a consumer, it's important to be aware of the pricing structure and understand the implications of paying with cash or card. If you have concerns or questions about the pricing practices of a particular business, it's best to reach out to the owner or management for clarification.
Ultimately, the decision of whether to accept or be comfortable with the pricing structure is a personal one. Some consumers may appreciate the option to pay a lower cash price, while others may find it inconvenient or unfair.
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That's great to hear! It gives me more confidence in considering for my card payment needs. Are there any notable features or advantages that you found particularly beneficial?
