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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. 

stereo5
jerry_gt3rs's avatar
jerry_gt3rs
84 posts
 

I own and operate a small specialty service company and most of our invoices are fairly large. We’ve been in business for over 40 years and never once asked and always accepted credit cards. Recently saying the past six months I decided to ask my clients if they would mind using a check instead of a credit card. I would say that probably 75% of them had no problem with it and we’re happy to do it. The reality is it’s probably 2 1/2 to 3% right off the bottom line. This for small business like ours can be very meaningful. I do not however, charge anymore or any less depending on the form of payment but most of my clients understand who we are and what we do and I’m more than happy to help us out by writing us a check.

I appreciate them doing that and they appreciate what we do. I’m not sure if people consider a service business especially a small one any differently than a sales business but at the end of the day, it makes a big difference to the business owner like myself

not sure if this is helpful, but it’s been my experience. My best to all, Jerry.
 

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patrickdowns's avatar
patrickdowns
557 posts
 

It is the new reality. The credit card processing companies and/or banks charge that 2-3% fee and retailers have to pass it on. Profit margins aren't large, and it would come out of the dealer's pocket. They WILL get their "pound of flesh", but it isn't the retailers trying to screw the customers. It's just business. 

stereo5's avatar
stereo5 OP
6,716 posts
 

@parkergetdean , very presumptuous on your part.  I have plenty of money.  The internet dealer only takes CC and PayPal which I have both.  They want 3.9% if you use PayPal.  Your comment was truly something a jerk would say. I hope you feel good about yourself.

parkergetdean
1,036 posts
 

@stereo5  I have no idea what you are talking about. What I said was 110% neutral and factual and not in any way meant to degrade or disrespect any groups, demographies, generations or businesses. Which part did you find offensive?

I never said:  ALL people who use credit cards don't have money OR the ONLY time people use credit cards is when they don't have money. No, people use credit cards for many reasons with or without money.

What I said was: Millennials and Gen Z (vs Gen X and boomers) don't have money. They use credit cards because they have no money, or much less.

Lastly thanks for letting me know that you have a lot of money. Most people here do, they are insanely wealthy by my standards. Enjoy.

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