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View Full Version : yet another resturant scratched off the perfered list



the_gr8t_waldo
11-28-2017, 05:07 PM
Has anyone else run into this? Last night we went out to a fav. restaurant. when the bill came it had all the dishes/beverages we ordered, but among the idems was "guest check 3%". I asked the server about it and he said something about minimum wage supplement mandated by the state of calif. - so with three beers in me I let it go and paid the bill. this morning I did some online research about it. turns out it's the service charge creditcard issuers charge the restaurant to process a credit card purchase. Some thing that most of us would dismiss as a business expense. From my reading, this is with the blessing of the state of Calif. that now the business can pass this on to the customer. First time I've seen this done...and willing to bet it'll be seen in most other states in a few years. any one else seen this slight of hand trick in their state?

Paul Pless
11-28-2017, 05:12 PM
what i find unusual is that the amount is 3%
that seems like a lot

the surcharge that banks charge to process credit charges is sliding and based upon the volume and amount that businesses send the bank

restaurants are one of the businesses that typically have a very high volume of credit card sales; i would have expected teh restaurant fee to be 1%

that said, I agree its lame that it appeared on your bill, they should've just hid the cost in their prices

robm
11-28-2017, 05:20 PM
I thought the credit card companies didn't permit charging these fees in this fashion?

Mountain Equipment Co-op used to give a 2% discount for cash, but were forced to stop this practice.

It seems things have changed.

https://www.intelligenthq.com/resources/should-you-charge-customers-credit-card-fees/

Tom Wilkinson
11-28-2017, 05:21 PM
they should've just hid the cost in their prices

Exactly. Why itemize that amount? They are welcome to only take cash and not pay the extra for card processing but I'd bet their revenues would decline sharply. If you want to cover the fee as a cost of doing business build it into the price.

Tom Wilkinson
11-28-2017, 05:23 PM
I thought the credit card companies didn't permit charging these fees in this fashion?

Mountain Equipment Co-op used to give a 2% discount for cash, but were forced to stop this practice.

Lots of gas stations here do that and government entities charge a service fee, typically 3%, for using a CC to pay for things, taxes, fines, fees etc... I pay cash or check in those cases.

Joe (SoCal)
11-28-2017, 05:25 PM
Square charges us 2.75% - 0% if you use apple or android pay ( they are running a promotion ) our online POS takes CC and they charge 2.5. If I can get clients to pay with the Zelle app on their phone or via email its 0%

Whatever the case we never forward the cost to our customers ( just put as a tax deduction as cost of doing business )

Paul Pless
11-28-2017, 05:25 PM
Exactly. Why itemize that amount?They're trying to make a statement or they are incentivising people to pay with cash. Hmmmm. . .

AlanMc
11-28-2017, 05:35 PM
went to FL in feb this year. filled up 24 gallons for $30 in AL. got to FL, pulled into a place with signage saying "$3/gallon" which, was high compared to my last AL fill up. but i need gas.... so i turn the pump on and before i start pumping i see it saying like $4.50/gal. turns out they charged like an extra $1.50 a gallon to pay with a card. that really cheesed me. and later on the trip i noticed gas stations would have their premium gas handles in different positions so if you weren't paying attention you might fill up with premium by accident.

Too Little Time
11-28-2017, 05:39 PM
- so with three beers in me I let it go and paid the bill. this morning I did some online research about it. turns out it's the service charge credit card issuers charge the restaurant to process a credit card purchase.
I have noticed gas stations have cash and credit prices.

I don't get upset with prices any more. I don't even check the bill. I just pay what is asked and tip well.

CWSmith
11-28-2017, 06:22 PM
You can roll the 3% into the price of everything and then the people paying cash still pay it, but I certainly agree that itemizing it is not great for business.

Not giving an accurate account of what it was is far worse. If I got a bogus explanation like that, I'd never go back.

Chip-skiff
11-28-2017, 06:34 PM
Three percent? American Express charges more.

the_gr8t_waldo
11-28-2017, 07:35 PM
the amount is set by calif. ,and yes I'd have no problem if it was part of the purchase price...I failed to mention that that 3% applies to cash patrons as well as cc/debit card business. at least it appears so, since it was already on the bill when presented- at that point I haden't even reached for my card

Canoez
11-28-2017, 07:47 PM
They're trying to make a statement or they are incentivising people to pay with cash. Hmmmm. . .

Read my mind, you did.

StevenBauer
11-28-2017, 07:50 PM
I have noticed gas stations have cash and credit prices.

Illegal in some states. Like ours.

Nicholas Carey
11-28-2017, 09:08 PM
I thought the credit card companies didn't permit charging these fees in this fashion?

Mountain Equipment Co-op used to give a 2% discount for cash, but were forced to stop this practice.

It seems things have changed.

https://www.intelligenthq.com/resources/should-you-charge-customers-credit-card-fees/



In Washington state, charging a credit service fee is not only prohibited contractually, the b@$7@rds managed to get a law passed making it illegal.


Sent from my iPhone using Tapatalk

JayInOz
11-28-2017, 09:50 PM
[QUOTE=AlanMc;5408451]went to FL in feb this year. filled up 24 gallons for $30 in AL. QUOTE]

Hmmm- 24 US gallons- that's 90.85 litres. You paid $30.00? Where I buy my fuel here that would cost me $133. 55c. And that wouldn't go close to filling my tank. Stop yer whining Alan:) JayInOz

johnw
11-28-2017, 10:06 PM
went to FL in feb this year. filled up 24 gallons for $30 in AL. got to FL, pulled into a place with signage saying "$3/gallon" which, was high compared to my last AL fill up. but i need gas.... so i turn the pump on and before i start pumping i see it saying like $4.50/gal. turns out they charged like an extra $1.50 a gallon to pay with a card. that really cheesed me. and later on the trip i noticed gas stations would have their premium gas handles in different positions so if you weren't paying attention you might fill up with premium by accident.
That only makes sense financially if they aren't reporting their cash income on their taxes.

David G
11-28-2017, 10:10 PM
Vowing never to go back seems a bit extreme...

CWSmith
11-28-2017, 10:41 PM
Illegal in some states. Like ours.

Legal here, although not all gas stations do it.

Chip-skiff
11-29-2017, 12:20 AM
I'm guessing that there's some consumer protection law in Cal that requires merchants to list such charges on the bill. States like Wyoming lack that. Instead, merchants likely raise their prices by the average % charge for credit without itemizing it (and charge cash customers the same). So your restaurant was just being honest.

Greg Nolan
11-29-2017, 12:43 AM
The restaurant was not "just being honest" if it was suggesting that it was " something about minimum wage supplement mandated by the state of calif." See OP. Sounds like the restaurant was unhappy at having to pay the minimum wage and was incorrectly blaming the minimum wage -- a business expense born by all CA restaruants -- for credit card expenses -- an expense incurred only by those choosing to accept credit cards. Pretty dishonest, I'd say.

Chip-skiff
11-29-2017, 02:47 PM
The bill was honest. The server's explanation was BS.

Norman Bernstein
11-29-2017, 02:53 PM
3% is probably above the actual fee being charged to all but the lowest volume merchants. Square's 2.75% charge is exceptionally high... but admittedly, a convenience to small merchants trying to start out.

When I was taking credit cards for TideTracker sales, my fee was 1.75%.... and my good friend who ran an automotive service empire (12 locations) just recently told me that when he was still in business, he was paying 1.75%, as well.

My own feeling is that any merchant who tries to add on the charge card fee to his customers is VERY short-sighted... either that, or his business profit margin is so poor, he couldn't do business without charging for it. Successful merchants understand the value of good will... and doing the 'nickel and dime' thing, to their customers, doesn't generate good will.

Dan McCosh
11-29-2017, 02:53 PM
Don't really get the problem. Is the state requiring disclosure of credit card costs? What for? If they aren't, why list them separately on the bill?

the_gr8t_waldo
11-29-2017, 03:02 PM
yes I think so too..busy lad with no real time to explain it fully...knowing that customers only get peeved when they do get the real story. but the nerve of the business to bill their hard expenses on the customer, is what had me. not returning to them only makes sense...way too many other places to explore with my money in hand. voting with my feet!

David W Pratt
11-29-2017, 04:12 PM
More than once I have bought candy bars or drinks from vending machines with a credit card, no premium