Credit card surcharges

[calliopecruiser]

In the country where I live, we have this thing called money.

We pay cash for most everything.

We are never charged extra fees for this.

In fact, quite often I am offered a discount for paying cash.

You might want to try it.

 

 

Cash transactions are by far in the minority, and they are shrinking annually - more and more people are paying with plastic or e-transfers and less and less with cash. Especially in the US (where you live), where cash transactions are probably no more than a quarter of all purchases.

 

Where I live, offering a discount for paying with cash would be illegal (it still happens in some places, of course, but not officially).

[ksqueak]

There are many cards available in the US with no foreign transaction fees. American Express, BofA, Barclay, British Airways, Capital One, Chase, CitiBank, Discover, Hawaiian Airlines, Marriott, Southwest, Wells Fargo, United to name a few. Many don't have annual fees. Neither of my BofA or Citibank cards have foreign transaction or annual fees. And my BofA card even has a chip.

 

Check out this website for a list:

 

http://www.nerdwallet.com/blog/top-credit-cards/no-foreign-transaction-fee-credit-card/

 

 

 

Both my BofA and Barclay cards charge a fee! Yes, I'm sure after two recent trips. So, ask questions when/if you apply for a new card!

[smeyer418]

In the US while its not illegal to charge a fee for the use of a credit card, the credit card companies by contract prohibit it. They do allow however to give a discount for cash...so isn't that the same thing?

In the US the onlymajor bank issuer that both charges no fee and absorbs the credit card issuer 1 % on foreign transactions on all its cards is Capital One. While some other major issuers on certain cards charge no fees some or most of their cards carry this fee.

You do pay a fee to change cash into another currency. The fee is charged separately or built into the exchange rate.

On Credit cards you get the exchange rate for bulk transaction at the overnight rate. Normally a very favorable exchange so even with the 3% that some cards charge you, you get that rate and the convenience of not having to change money. Unless its a very large transaction the 3% is normally worth the convenience....IMO.

 

I think BruceMuzz even though it says San Francisco also spends much time in either Singapore or Hong Kong. There the suggested price in most places is really just a suggestion and most things are negotiable including credit card issues.

Edited July 2, 2014 by smeyer418

[akcruz]

Both my BofA and Barclay cards charge a fee! Yes, I'm sure after two recent trips. So, ask questions when/if you apply for a new card!

 

I am wondering if it is a certain type of card in each of those banks as I know our Citicard and Chase cards both charge a FTF. Will need to follow up next time we are heading out of country and plan on using them.

[greatam]

Cash transactions are by far in the minority, and they are shrinking annually - more and more people are paying with plastic or e-transfers and less and less with cash. Especially in the US (where you live), where cash transactions are probably no more than a quarter of all purchases.

 

Where I live, offering a discount for paying with cash would be illegal (it still happens in some places, of course, but not officially).

 

 

CASH works VERY well paying for medical stuff. The discounts are absolutely astounding. Here in AZ-MRI with your insurance is $1000. CASH is $250. PET scan-$2200 insurance, $1000 CASH. Ambulance-$850 from my house with insurance, $400 CASH. Doctor's office visit-$140 insurance, $60 CASH.

 

My insurance now has $2500 deductible with 80/20 co-pay before I go to the supplement. Other than a MAJOR incident, it is cheaper to pay for all my MRI's (every 3 months) and doctor vists CASH than pay the deductible. I don't even tell them I have insurance anymore. The medical providers don't want credit cards. They want CASH or debit.

 

Major truck stops all over the USA have a cash/credit price differential. Usually averages $.04 per gallon. When you are purchasing 35,000+ gallons of diesel a week, it adds up quick. ALL my drivers are now running on real folding green or company debit cards that they can use as ATM cards and actually pay cash at the counter.

 

I am seeing more and more places (generally small, locally owned businesses) giving cash discounts.

[boogs]

My understanding of US law is that when a price is, say, $102 for paying by credit card or $98 for paying by cash

- if it's a $4 surcharge for using a card it's illegal

- but if it's a $4 discount for paying in cash it's not.

Kinda like "one man's terrorist is another man's freedom fighter", it depends on your viewpoint. ;)

 

An important distinction is that the discount for cash is not commonly done. Most vendors require the same price whether charge or cash. Providing cash discounts is at the vendor's discretion, and most do not provide it. For the vast majority of the vendors, the price is the same whether you pay by charge or by cash. It actually benefits them as they don't lose revenue due to lower cash prices. The few that do provide a discount do so as a marketing tool, and these are almost exclusively gas stations. ARCO is a major chain of gas stations that does, as do some smaller independent stations, at least in my area.

Edited July 2, 2014 by boogs

[boogs]

Both my BofA and Barclay cards charge a fee! Yes, I'm sure after two recent trips. So, ask questions when/if you apply for a new card!

 

I am wondering if it is a certain type of card in each of those banks as I know our Citicard and Chase cards both charge a FTF. Will need to follow up next time we are heading out of country and plan on using them.

 

Then you have the wrong type of charge cards. BofA, for instance, has a travel card that has no FTF, no annual fee, and earns 1.5 points for every dollar charged. http://www.creditcards.com/credit-cards/bankamericard-travel-rewards-credit-card-22079418.php?catid=2022 It is also chipped for use overseas and in preparation for the long overdue transition to chip technology here in the US. Simply convert you current card to the travel card rather than applying for a new one. They will give your current account a new number, and you can enjoy the benefits of the new card. My wife and I did this on our cards a few months ago. Also, we've had our CitiBank travel cards for several years now. They also have no FTF, no annual fee, and offer 1.5 points for every dollar charged.

Edited July 2, 2014 by boogs

[iuki]

Both my BofA and Barclay cards charge a fee! Yes, I'm sure after two recent trips. So, ask questions when/if you apply for a new card!

 

So does ours from AAA. We paid a foreign transaction fee for jewelry we purchased in Jamaica. However, we like the cash rewards program, so we're not changing. We make more purchases and pay our bills, here in the U.S., than we do outside the U.S.

 

I even checked our AMEX card. They also charge a transaction fee.

 

There are VERY few credit cards that do not charge this fee.

[fortinweb]

So does ours from AAA. We paid a foreign transaction fee for jewelry we purchased in Jamaica. However, we like the cash rewards program, so we're not changing. We make more purchases and pay our bills, here in the U.S., than we do outside the U.S.

 

I even checked our AMEX card. They also charge a transaction fee.

 

Their Platinum card doesn't. But the annual fee is $450! :eek:

 

There are VERY few credit cards that do not charge this fee.

 

As I commented to another poster, see post #7 for information on cards that do not, at least of those available in the US. There seem to be plenty that a person could use. I have been using one of them for years.

 

Most major US banks and many credit unions offer these cards. They are NOT difficult to find.

[THE ANCIENT MARINER]

I must apologise for the lack of information provided in the original post, and thank everyone for their responses.I live in the UK,and booked my cruise direct with Fred Olsen Cruise Lines,they tell you at the time of booking, that payment by credit card will incur a fee of 2%, also when you check in and you register a card to settle your on board account ,they again advise you of the credit card surcharge.This is also the case with P&O cruises and all the UK travel agents I have used. This as far as I can remember is only a recent addition I don't remember it 5 or 6 years ago. Fred Olsen say that this is a merchant charge from the credit card company and they are legally allowed to do this so they do because they can.Do you not find this extremely annoying ,do they need to make this extra charge appear as a penalty for using a credit card.Could these costs to the travel agent / cruise line not be incorporated into the advertised price of the cruise ,and not displayed separately just to antagonise us???

[LHT28]

they are legally allowed to do this so they do because they can.Do you not find this extremely annoying ,do they need to make this extra charge appear as a penalty for using a credit card.Could these costs to the travel agent / cruise line not be incorporated into the advertised price of the cruise ,and not displayed separately just to antagonise us???

 

Sounds tacky to me ...I guess they want people to pay cash for the cruise so they tack on their fee from the CC company

It is the cost of doing business

You would think with a large purchase such as a cruise they are still making money to cover the small fee

 

Do the North American lines do this as well for U.K. residents??

[THE ANCIENT MARINER]

In reply to LHT28 ,you echo my sentiments exactly. and although I have no evidence I would strongly suspect that the North American cruise lines will charge UK residents if they can .I know that P&O cruises, which is part of Carnival Group, which is an American company, do this.However I can shop online or in my local shop or supermarket and spend for example only £5.00 and yet there is no surcharge incurred for paying with a credit card, so I do not accept the reason the cruise lines have offered as justification.

[LHT28]

That is crazy I could understand if your CC dings you for the FTF ours hides the 2.5% in the exchange rate

 

I would be shopping around for a new cruise line :D

 

Lyn

[THE ANCIENT MARINER]

In reply to BruceMuzz, we all have paper money but there are financial advantages with my credit card as I receive 1% cash back on all I spend , and there are insurances against faulty goods and services, etc, when payment is by card,and providing I pay off each month in full I incur no charges apart from anything cruise related which brings me back to my original gripe. Just as a matter of interest ,what will you do when old fashioned coins and notes become obsolete?as they will sooner rather than later and how do you shop on line with cash?

[John Bull]

Fred Olsen say that this is a merchant charge from the credit card company ............ Do you not find this extremely annoying ,do they need to make this extra charge appear as a penalty for using a credit card.Could these costs to the travel agent / cruise line not be incorporated into the advertised price of the cruise

 

So by preferring to use a credit card rather than cash or a debit card, you've added 2% to the cost of processing your payment.

Fair enough - if you choose to you incur that commission, you pay it.

 

But don't go thinking the answer is for you and everyone else to have that added into their cruise ticket prices, even though others are happy to use payment methods that don't incur that charge. :mad:

Did it not occur to you while you were typing, that your suggestion would annoy others who would pay more just so that you don't get annoyed by the commission being added separately. :rolleyes:

Or that the simple answer is to do what others do, & use a different payment method?

 

I mentioned that Thomson add the card commission if settling the on-board account by cc. Wasn't aware that Fred does the same, but if I cruised with Fred I'd do as I do on Thomson - I'd pay by debit card, or -to avoid the "hold" on by bank funds - register a credit card & switch to debit card a day or two before the end of the cruise.

Again, any reason you won't do the same? Or do you want to increase my on-board account by 2% as well? :mad:

BTW, P&O don't charge for paying the on-board account by credit card.

 

In recent years, Fred and P&O have both followed the US trend of adding auto-tip to passengers' on-board accounts.

£4 p/p per day for Fred.

But you've not suggested that should be incorporated into the cruise ticket price, along with the cc commission. :confused:

 

You really haven't thought this one through. ;)

 

JB :)

Edited July 2, 2014 by John Bull

[SteveH2508]

Sounds tacky to me ...I guess they want people to pay cash for the cruise so they tack on their fee from the CC company

It is the cost of doing business

You would think with a large purchase such as a cruise they are still making money to cover the small fee

 

Do the North American lines do this as well for U.K. residents??

 

Not yet - please keep it quiet - they might just try it.:(

[LHT28]

Not yet - please keep it quiet - they might just try it.:(

 

I sure hope it is not a trend ;)

If we pay by CC the cruise lines charge the same for everyone whether you pay cash, debit, CC or cheques..the way it should be IMO

 

I am sure the cruise lines have it all worked out, like shops ..it is the cost of doing business

[akcruz]

Sounds tacky to me ...I guess they want people to pay cash for the cruise so they tack on their fee from the CC company

It is the cost of doing business

You would think with a large purchase such as a cruise they are still making money to cover the small fee

 

Do the North American lines do this as well for U.K. residents??

 

Both of my kids colleges charge 3% to pay tuition by a credit card. That is a bit more than most cruises we take. Of course cash payment, bank transfer is free. Even with my 1% cash back nit worth using the CC? I agree with the amount they are getting why can't they just absorb the fee?

[EdmPair]

I work in physical security including with merchants who deal in large quantities of cash. There is a cost to keeping that kind of coin secure. We sell really nice safes to big stores for overnight protection and a travel agent who pushes to get cash needs to have a comparable box or will not have insurance for overnight storage.

 

And then there is the 'cash exposure' which is how much risk you take of an armed robbery from peeps who want cash. The trend in retail has been to less and less cash and in Canada that means taking debit and credit for almost everything. The cost of credit card commissions is roughly what you save on the cash handling issues according to some retail security analysts. It is very close to neutral.

 

On a related note when I was shopping for a house many years ago, a realtor spoke of getting a payment in cash for a house the day before. She said it was 50% of this big house and knowing what I do, told me she was uncomfortable moving the money to the bank. Most of us would think of this kind of coin as a lottery win and I would NOT carry it all in cash.

 

My 3 cents Canadian,

M

[Soloist]

I find this thread interesting as I'm always reading that residents of the UK, Australia, etc. have all these consumer protections, yet in the US it is illegal to charge a fee when the customer uses a credit card. Whatever.....

 

Actually it has never been illegal to charge a customer for using a credit card. Just think about every time you put gas in your car.10 to 15 cents for credit. It used to be against the merchant agreement with the CC company to charge a fee to the customer for using a CC. That way more people would use CC`s and they would make money on the interest they charged the customer and the money they charged the merchant for accepting the card.

 

But that part of the agreement was rendered null and void with cc reform. The CC can charge the merchant what they want, and the merchant can pass that cost to the consumer, or as many do require a minimum purchase to allow you to use the CC.

 

At this point it is in the merchants best interest to not charge more as people just wont do business with them. By the same token, insurance can be cheaper for those who do not have excessive cash on premises.

[Algebralovr]

Both of my kids colleges charge 3% to pay tuition by a credit card. That is a bit more than most cruises we take. Of course cash payment, bank transfer is free. Even with my 1% cash back nit worth using the CC? I agree with the amount they are getting why can't they just absorb the fee?

 

My university charges 2.75% as a fee if tuition is paid with a CC. They used to not charge a fee, but a few years ago, realized how much they were spending on credit card fees. The rule was passed that the public institutions could not use tax money to deal with the CC fees, since only some people benefited from it. As a result, they contracted with an intermediary to run CC charges and pass the actual payment to the institution. The intermediary charges 2.75%, probably pays 1% and everyone is satisfied - except those of us who would like the points we used to earn by paying tuition. When they started that, they also stated doing in-house financing at a rate of 1%. So if the student has a semester fee due of $10,000, the U will break it into 4 or 5 payments, and charge 1% on the unpaid balance. That is usually cheaper than paying 2.75% on the whole sum.

[THE ANCIENT MARINER]

Just a quick reply to JOHN BULL, just to apologise, for not thinking this through, and thank you for highlighting my error.I thought that as you subsidised my every purchase ,at supermarkets, stores shops ,on line purchases, fuel for my car , spectacles, furniture and so on and so on, regardless of you using a credit card yourself or not and the cost not being visibly passed on to you , that the cruise lines adopting the same stealth costs would also go unchallenged . I guess that the shops and stores calculating their prices to negate the line on your till receipt that states use of a credit card will incur a 2% surcharge is a point that you have raised on a forum somewhere as you feel so strongly about subsidising people who use credit cards? or do you not buy anything???Anyway this is way off original post I'm out of here now.Bye

[LHT28]

I can honestly say I do not think I have ever seen any store charge more for using my CC

The prices are stated on the item ...I pay that price with cash or CC

 

In a local computer store they use to give you a discount for cash but the base price was still the same

 

If a business stated charging more to use a cc then they would not have my business

 

JMO

 

Lyn

Edited July 3, 2014 by LHT28

[THE ANCIENT MARINER]

My point exactly LHT28, so therefore although everybody pays it no body is actually made aware and therefore is not annoyed by the words "2% surcharge " and subsequently paying more for exactly the same quantity / quality of service. However if you want to pay by credit card I don't think you can avoid it when you book a cruise with any line in this country and also again when you settle an onboard account at least on Fred Olsen Cruise Lines. I am advised that P&O don't add a credit card surcharge to onboard accounts so one can only assume that the cost to the merchant(P&O) from the cc company must be absorbed by all the guests ,cash, debit card,or credit card which is what I was suggesting, bearing in mind that eventually nearly all will use a credit card

Edited July 3, 2014 by THE ANCIENT MARINER

[John Bull]

Just a quick reply to JOHN BULL, just to apologise, for not thinking this through, and thank you for highlighting my error.I thought that as you subsidised my every purchase ,at supermarkets, stores shops ,on line purchases, fuel for my car , spectacles, furniture and so on and so on, regardless of you using a credit card yourself or not and the cost not being visibly passed on to you , that the cruise lines adopting the same stealth costs would also go unchallenged . I guess that the shops and stores calculating their prices to negate the line on your till receipt that states use of a credit card will incur a 2% surcharge is a point that you have raised on a forum somewhere as you feel so strongly about subsidising people who use credit cards? or do you not buy anything???Anyway this is way off original post I'm out of here now.Bye

 

Hmmm, methinks the Mariner didn't like my response. ;)

 

Thee & me can use our credit card for all these things - but if any of those stores decided to split out a cc surcharge I'd use a dc, except for those purchases where the safety net of a cc covers a forward order or distance-purchase. Or I'd decide to shop elsewhere.

And you can do likewise. :rolleyes:

 

I'm simply saying that I don't want my ticket-price increased just because you don't want to see on your invoice what your decision to use a cc is costing you.

If I unnecessarily incurred that cost, seeing it on the invoice would focus my mind. ;)

Clearly it's focussed your mind, but rather than to complain about those who have the common sense to use a different payment method you'd find it an awful lot easier to do likewise.

 

I just don't know why you've chosen to be so bull-headed as to use a cc in those circumstances. :confused:

It's your money, so if you want to give it to the fat-cat bankers that's entirely up to you.

Just don't go expecting the rest of us to be obliged to pay the same.

 

JB :)

Edited July 3, 2014 by John Bull