Dealers charging a fee for using a credit card
I’m wondering if this is the new trend of dealers charging customers anywhere between 3 and 4% fee on the total sale if paying by credit card? I was going to buy a brand new item online for 5K, but stopped dead in my tracks when I found I was going to have to pay a 3.9% fee for using my Mastercard! The fee would have been almost $200.00! Since this dealer has mostly online sales, it sounds like a big money grab to me. Between the 5K price, add $275.00 for shipping and 200 for paying by CC plus sales tax of $300.00, it would have cost me $5775.00. I cancelled before I clicked send. I called the dealer and was told that is the cost of doing business on the internet, so I basically told them to pound sand.
Two weeks ago, I had all new brakes and rotors replaced on my 2020 Tucson with only 22K miles on it. The bill was $1375 and I paid with my card. When I got the statement, there was a CC fee of $37.00 added to the bill. I went back to the Hyundai dealer and was told all businesses do this and he pointed to the sign. I told them I saw the sign but paid with my DEBIT CARD, not a CC. I was told it didn’t matter. When I asked how many transactions were in cash, the service writer told me one out of fifteen pay in cash. This makes me sick to my stomach.
I would like to hear from others who have dealt with this.
This is now common practice, including restaurants and government agencies. Some restaurants list two prices on their menus - one for cash and another for credit card payments. Similarly, in California, government entities such as those handling property taxes and DMV transactions charge credit card processing fees when payments are not made via ACH transfer. |
@newton_john - I've got a friend from England, and every time he comes over for a visit, he gets very annoyed by sales tax being added at the counter. He says whatever the price is that the item is labeled as being, should be what it sells for! |
Here's what I think: VISA and MC get away with fees here no other country allows. Retailers just get shafted (and you). Card lobbyists must earn their keep, I guess. The other thing is, if the sellers were already doing business before, considering the costs and prices, why would they now add a surcharge on top of it when not doing that previously? It's a price increase any way you look at it. At any rate, you can (I don't) use a debit card. Adding a fee to a debit card is illegal. There's no processing there, it's a straight bank transaction. Problem is, using your debit card opens you up to scammers getting straight into your bank account. There is little fraud protection as there is with a credit card. Why not get a money order or cashier's check? Whatever you do, talk to your retailer and see what they will accept. If they still want a processing fee, tell these crooks (that's what they would be then) to go to hell. Only credit cards (in the USA) have fees as such. It's a scam, and it's not like this in other countries. BTW, sending ppl checks is not a good idea. All your account info is on them. |
