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Thread: Door just opened to charge Credit Card processing fees to customers

  1. #1
    Senior Member Greg K's Avatar
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    Default Door just opened to charge Credit Card processing fees to customers

    Just came across this article from a couple weeks ago. This looks to be a big change in things, technically you were not allowed to charge a higher price for CC users to cover the processing fees you pay. (some companies would get around it by offering "Cash Discounts")

    Anyhow, looks like with the settlement of this lawsuit, we will now be able to pass the processing fees onto the customers. (and as customers using CC's, as companies choose to this, we will be paying more for our own purchases)

    Under the credit-card settlement Friday, worked out over months of negotiations, merchants can charge higher prices to consumers who decide to pay for purchases with credit cards.
    http://seattletimes.nwsource.com/htm...dsettle14.html
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    This is really good news

  4. #4
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    I wonder who will be brave enough to do it. It's one of those things that will probably take a while for it to be norm before you can do it without making clients think you are nickel and dimeing them.

  5. #5

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    everyone should have been doing this along. your prices should have this accounted for as a cost of doing business. whether you choose to add an STC charge, service charge, whatever. You should have had this factored into your pricing from day one. I can honestly say, I have never paid a credit card fee out of my pocket. It has always been a factor, just like gas, insurance, office, payroll, taxes, etc.

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    Quote Originally Posted by BirmLimo - Michael Birmingham View Post
    everyone should have been doing this along. your prices should have this accounted for as a cost of doing business. whether you choose to add an STC charge, service charge, whatever. You should have had this factored into your pricing from day one. I can honestly say, I have never paid a credit card fee out of my pocket. It has always been a factor, just like gas, insurance, office, payroll, taxes, etc.
    Ditto. It has always been a cost of doing business. Besides, how many trips to do really get that are paid for by cash? For me, I have a CC on file for every trip. I have a couple of corporate accounts that I invoice and have to wait a little bit for a check, but that savings from the CC processing charge becomes a "waiting for check" type of charge.
    Tim Wiegman, Jr.
    Boulevard Limousine
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    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
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    I'm curious as to how you are going to add this to your billing. Are you going to tell people that there is a 3% charge for you processing their credit card? Oh, then I will pay using cash. Oh, wait, you require a credit card to hold the reservation and demand payment before service is rendered? And the reservation isn't guaranteed until a deposit is received?

    Does anyone else see the problem here? It just seems like poor business practice.
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

  8. #8

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    Quote Originally Posted by BLVD Limo View Post
    I'm curious as to how you are going to add this to your billing. Are you going to tell people that there is a 3% charge for you processing their credit card? Oh, then I will pay using cash. Oh, wait, you require a credit card to hold the reservation and demand payment before service is rendered? And the reservation isn't guaranteed until a deposit is received?

    Does anyone else see the problem here? It just seems like poor business practice.
    Cash is king! So it just makes sense to give someone a cash discount. With this new change in the law, I see it becoming the industry norm. Currently when offering a cash discount to my clients, I still get a credit card to have on file before confirming the booking. I also have them sign my online contract so that they understand that they are responsible for the whole price of the job unless other arrangements are made and documented. I also will(usually) charge a deposit on the credit card, and I really don't care about the 3% for the deposit.
    Tough times don't last. Tough people do.

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    Whenever I book trips the week of I always try to get a $200 authorization instead of a $200 deposit. With the authorization you are not only saving $6 but you have no worries about a CC getting declined for damages. The only downside is they expire so if you do one 2 months ahead of time it will be expired. People who wait to book a vehicle last minute are much more likely to be the kind of people that will cause damage or some some kind of smoke/puke violation.

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    Got some old schoolers here! STC Do any of you know where that came from? Is there a Surface transportation agency that should be collecting the revenue we collect on that? And what is the Standard STC percentage. Where can I find the STC index that tells me how much I can charge?

    I really wish our industry would have some integrity and just call it was it is: A professional sounding fake fee to cover our expences and gouge our customers.

    So the next question is if our discount rate with the CC company is %2.345 Is that what you will charge or just round it up to 5% for good measure?

    Or just hide it in the fuel surcharge?? No one will see it in there! LOL


    Careys Definition, Double talk at it's finest:
    Surface Transportation Charge (STC)
    STC is a surcharge based upon various overhead expense items, some of which may not relate to the specific trip. The STC is always calculated as a flat percentage of the base rate.
    Last edited by Steve W.; July 31st, 2012 at 12:39 AM.
    Steve Walker ppvsteve@gmail.com

  11. #11
    Senior Member Wade Randolph's Avatar
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    Quote Originally Posted by Steve W. View Post
    Got some old schoolers here! STC Do any of you know where that came from? Is there a Surface transportation agency that should be collecting the revenue we collect on that? And what is the Standard STC percentage. Where can I find the STC index that tells me how much I can charge?

    I really wish our industry would have some integrity and just call it was it is: A professional sounding fake fee to cover our expences and gouge our customers.

    So the next question is if our discount rate with the CC company is %2.345 Is that what you will charge or just round it up to 5% for good measure?

    Or just hide it in the fuel surcharge?? No one will see it in there! LOL


    Careys Definition, Double talk at it's finest:
    Surface Transportation Charge (STC)
    STC is a surcharge based upon various overhead expense items, some of which may not relate to the specific trip. The STC is always calculated as a flat percentage of the base rate.
    You forgot to mention the car rental industry and hotel industry from your snarky post. Have you ever seen those fees? And, as long as it is disclosed up front and not "hidden" who gives a rats?

  12. #12
    Senior Member Greg K's Avatar
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    One other thing to consider with this, how many bills do you (as a company) pay using a credit/debit card? For my company, just about all are, so if all the people I purchase services from started passing on their fees, my overhead would go up 3%. Checks may start getting popular again ;-)

    -Greg
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