Store Manager

[miniman]

Most businesses over here do not accept cheques any more. It is cash or card. I must admit that I write very few cheques now - the estate management fee, the boys swimming tuition and a few bills that do not have electronic payment. I also use them for paying into our savings accounts.

 

[Andy M.]

...When out and about, we use our debit cards but like Picanis pointed out we always tell them to run them as credit. If you use your PIN, the bank charges you $0.50. If you use it as credit, it costs the merchan...

The 50 cent fee is not universal. I pay no fees when I use a debit card. Some stores don't make a distinction between debit and credit and run them all as credit cards, then my bank recognizes the transaction as a debit and processes it properly.

 

[Barbara L]

The 50 cent fee is not universal. I pay no fees when I use a debit card. Some stores don't make a distinction between debit and credit and run them all as credit cards, then my bank recognizes the transaction as a debit and processes it properly.

Mine doesn't charge for that either. I usually choose credit just so I don't have to type my PIN in.

Barbara

 

[GB]

You should also check with your bank about what programs they have to protect you. I use my credit card for everything to get the points. When I shop online I can use a programs from the bank that gives me a temporary credit card account number. The account number is good for a one time purchase. I open the small program (or go to the banks website and enter the info there) and plug in a few things and it spits out a credit card number, exp date, and security code. I use that to make my purchase. The number is good for that one purchase only. If someone tries to use that number again it will not work.

 

[Andy M.]

You should also check with your bank about what programs they have to protect you. I use my credit card for everything to get the points. When I shop online I can use a programs from the bank that gives me a temporary credit card account number. The account number is good for a one time purchase. I open the small program (or go to the banks website and enter the info there) and plug in a few things and it spits out a credit card number, exp date, and security code. I use that to make my purchase. The number is good for that one purchase only. If someone tries to use that number again it will not work.

That's a great idea! Care to share the name of the bank??

 

[GB]

Sure Andy. It is Citibank. The programs is called the Citi Virtual Account Numbers. I do not know if it works for Debit cards as well, but I know it works for credit cards.

 

[pacanis]

When out and about, we use our debit cards but like Picanis pointed out we always tell them to run them as credit. If you use your PIN, the bank charges you $0.50. If you use it as credit, it costs the merchant....

I didn't realize banks charged their customers .50/transaction to use a debit card. It's been so long since I've used one. It used to be they only charged a fee if you took cash out at a machine that wasn't theirs. Is this all banks, or does it depend on the type account you have?

I gotta play devil's advocate here though..... why should the merchant absorb the cost for the customer's convenience of not paying with cash? Especially if it is one of these small sales like the TV ads are pushing; like paying for fast food.
It is not uncommon among small businesses to discuss an extra "markup" to cover CC processing fees, then turn around and give the markup as a discount to someone paying with cash. It is illegal to do it the other way, charge an extra 3% (or so) to anyone using a CC for a purchase.

Sometimes there is very little markup and all those CC fees add up at the end of the month.
Unless your Wally World who happens to be their own processing co, too, so the money just goes in a circle.

 

[Andy M.]

...why should the merchant absorb the cost for the customer's convenience of not paying with cash?...

...to get their business! It's been going on for decades for credit card purchases.

 

[pacanis]

I guess it all depends on the business.
I find just as many people who pay with cash or check as with CC, but then my charges are rarely something they would need to "finance" and not pay off all at once. Isn't that why CCs first came out, to allow purchases you can't afford all at once?
All these perks (like your points that earned you a trip to Aruba) really hurt small businesses. The only real advantage to accepting a CC for a merchant, is you don't need to worry about a check going boing. And of course that can be verified now.

I admit I still have one foot in the past though. Especially when it costs me money.

 

[GB]

The only real advantage to accepting a CC for a merchant, is you don't need to worry about a check going boing.

That is not the only real advantage. More and more people are not carrying cash, or at least not a lot of cash. The advantage to the merchant is that these people can still buy things from them even if they do not have any cash on them. If a store does not accept CC's then it is very possible that they have lost my sale as I simply do not have the cash on me to make the purchase that way.

 

[pacanis]

OK, point taken. Let me rephrase; The only real advantage of merchants in specialized businesses such as mine.......

People don't walk into my place not expecting to spend money, so they come prepared. Fortunately for me a great deal of them pay with cash or check still.

I still feel that paying with plastic is more beneficial for the consumer, not the smalltime merchant.

Your mileage may vary

 

[Andy M.]

Master Card and VISA replaced store charges and charge accounts at little stores. It releived the store owners of the burden of billing and collecting charges and the losses of writing off bad debts.

As GB said, it also made credit purchases available to a wider range of businesses so they could compete on a level playing field with the big guys.

The miles or points you earn on a CC are the CC company's incentive for you to use their product rather than the other guy's.

The point of all this is that none of these things are one way streets. There is something for everyone to benefit from.

 

[GB]

OK, point taken. Let me rephrase; The only real advantage of merchants in specialized businesses such as mine.......

I do not know what kind of business you are in. I am sure you are right for your particular business whatever it may be.

I would think though that another advantage of accepting credit cards is that you get people who might not have the money right now, but buy on credit anyway. If you do not accept plastic then your customers must have the money right then and there. That limits your sales potential.

 

[jennyema]

"Digital" = your debit card rather than a check

Many retail places around here won't take paper checks anymore.

 

[miniman]

In the UK, it is legal for companies to add an extra charge for card transactions. When we pay for ice skating lessons, we have to take along £140 in cash or pay an extra p£1 for a card transaction.

I do like using paypal for online transactions.

 

[Maverick2272]

I didn't realize banks charged their customers .50/transaction to use a debit card. It's been so long since I've used one. It used to be they only charged a fee if you took cash out at a machine that wasn't theirs. Is this all banks, or does it depend on the type account you have?

I gotta play devil's advocate here though..... why should the merchant absorb the cost for the customer's convenience of not paying with cash? Especially if it is one of these small sales like the TV ads are pushing; like paying for fast food.
It is not uncommon among small businesses to discuss an extra "markup" to cover CC processing fees, then turn around and give the markup as a discount to someone paying with cash. It is illegal to do it the other way, charge an extra 3% (or so) to anyone using a CC for a purchase.

Sometimes there is very little markup and all those CC fees add up at the end of the month.
Unless your Wally World who happens to be their own processing co, too, so the money just goes in a circle.

As Andy pointed out, not all banks charge the $.050, although we are having a tough time finding one out here that doesn't. We were thinking of going to WaMu or BankOne but they have been closing stores in our area and so would not be convenient.
We also have TCF just because they have our mortgage, but we don't use them for anything else because every time we used our debit card at an ATM in a Jewel store we got ripped off by someone traveling to Mexico.
I really wanted to tell that person next time do it twice so I can go to!