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34 thoughts on “Coming Soon: Different Prices for Cash, Credit and Debit”

  2. If there’s honesty in it (lol lol)and the consumer is “SHOWN” the complete price/cost, we could deal with it. It’s amazing what “GREED” will/can accomplish.

  3. Although I recognize that merchants are charged differentially by credit card companies, it stinks from a consumer standpoint that they would publicize prices differentially. They’re not in business to lose money, and the credit card companies gouge them, so they gouge us.

    The core problem is not with the merchants; it’s with the credit card industry. That’s where the real greed lies. They not only charge the merchants for their services, they charge consumers who have limited credit a small fortune to use their product. Those of us who have better credit get a relative bye plus pay-backs.

    One solution is to only pay with cash or a debit card. A better solution would be for credit card companies AND merchants to provide full disclosure in easy-to-understand terms. President Obama’s new watchdog consumer agency seems the best place to take up this problem (in case you free-market capitalist types can’t figure out why the President has pushed for financial reform).

  4. It will be interesting to see what on-line retailers do since their business pretty much depends upon credit card purchases. If brick & mortar stores take advantage of the new regulations to jerk their customers around it could encourage more people to take their business to on-line vendors. Depending, of course, on just what the on-line vendors decide to do.

  5. Credit card companies are evil, almost all of us can agree about that. But for retailers to charge more depending on the cc surcharge…c’mon?! They are seriously considering this? I run my own business, too, and I won’t be changing the prices depending on how my customers pay. I’d rather take the loss and keep my customers than make them angry and lose them forever.

  6. Finally! dump the plastic.. pay cash.. with us on S S an not a COLA again th is year an the prices of health insurance on the incline ..Thanks heavens there maybe a way to get a break..

  8. Another excuse for retailers to raise prices before figuring the “new” price. Merchant fees by credit card banks should be uniform among all merchants. Mom and Pop stores pay the same merchant fee as Wal-Mart. Variable consumer fees would be charged (dinged) to the consumer by the banks depending upon the method of payment.

  9. If I pay cash for merchandise, I don’t know why I should help pay for your “free trip” to Bora Bora through higher retail prices because you have a credit card reward program. Cash sales should cost less to the consumer than credit/debit card sales. Cash is king.

  10. I think it stinks. Shopping as it is now can be hard enough if you are trying to save money and this only complicates it 100 fold. If only some of the retailers adopted this policy I would shop at the ones that did not.

  11. Not only absurd, but dangerous. Why? Because more people will have to carry larger amounts of cash on them. The crooks will love it. Also, look for more identity theft (like we don’t have enough of it already) because people will have to enter their PIN more often in public places. Much more opportunity for their PIN to be compromised.

  13. I would cancel all my cards and only pay cash. I would hope that many businesses would stop taking any plastic. Do not allow the govt. to bail out the banks that would start failing due to their great revenue losses.

  16. I would disagree wih the multiple prices by method which you use. Companies are trying to get you to pay more for purchases by adding on fees, and slips.

  18. I walked out of a store that requires a photo ID if you use a credit card. I told the manager that he just lost a customer of 25 years and he didn’t care. What are we coming to? Regardless which way you go, you lose.

  19. I just went to a restaurant that offered a 5% discount for cash. I was surprised to see both the offer and the amount offered. Credit card fees are typically less than 2%, or so I believe. I figure that credit card fees are baked into prices everywhere so if you pay cash, you get no benefit. That’s why I try to pay with a card when I can, but I accepted the 5% discount at this restaurant.

  20. It is a well known fact that shoppers tend to buy more when they use a CC. Wake up retailers–you are in a plastic world! Plastic is a cost of doing business as is the employee that washes the windows. As for 3-5 published prices? That would be hogwash! Cash or Credit at most.

  21. Consumers have been duped to think we’re getting something for nothing when we use reward cards. No one really knows the differences in cost for paying in various ways. Folks keep pushing plastic without explaining that not only do you have a permanent record of every expenditure but it costs more than cash. Maybe this mess will at least teach us that there are monetary and non-monetary costs for each payment mechanism. Maybe more cards will begin to be available without rewards. I’ve found the rewards impossible to use, anyway.

  22. Out of all these various prices, which price will be used for calculating sales tax?

    Edgar replies: Tax is charged on the actual price paid for the cash customer. You raise an interesting issue with respect to the plastic payers — is the surcharge taxable?

  23. One aspect of all this that is never considered when comparing the costs of cash vs credit transactions: The cost of handling all that cash.

    Consider the following:

    Cash can be easily lost or misplaced, and leaves no paper trail.

    Cash requires the construction and maintenance of safe rooms, which are fortified to prevent robbery and theft.

    Cash requires the presence and cost of armed guards to protect it from thieves.

    Handling and counting cash consumes much time and expense in paying higher labor costs for reliable personnel.

    Cash requires the use of armored truck services to transport to and from the bank. I know this ain’t cheap. Those trucks are expensive to say the least.

    Cash transactions at the bank have handling fees associated with them for deposits, as well as providing small currency denominations, and rolls of coins. (Ever read a commercial bank’s fee schedule? Eye opening)

    You have none of these expenses when dealing with electronic transactions such as from debit and credit cards.

    What are the REAL COSTS associated with handling cash, and how does that compare with the so-called extra costs of electronic transactions? Is there that much of a difference that would make the scenario depicted in this article a reality?

    Someone please study this and report back on the real differences (if any).

  26. Re. the comment about the costs of using cash, are there not costs to maintain the IT units and affiliated networks that monitor/service tech transactions? They might seem minimal, but are probably pretty impressive. And the privacy and disentanglement from technological risk (which can take much time and cost to the consumer to correct) are intangible benefits that for some of us, equal or outweigh the traditional costs of a cash society.

  27. Sue, do you know what the costs of cash handling actually are? How do you know that they are different than the opposing costs of electronic transactions? For years, merchants have paid those costs as part of their regular overhead. But now, with other payment options, there are different costs involved.

    I don’t know which are higher, or if there is even any difference.

    That is why I ask that someone research this — run the numbers — and report back.

    My whole point is that there may not be any real justification for surcharges on credit or debit transactions, as this article implies.

    Edgar, are you listening? Do you have a source who can objectively research this, and report their findings here?

  28. I own a small business and accept credit cards for the online transactions.
    There are many months that the swipe fee, gateway fee, and “discount” fees (for the different types of cards) add up to 10% OR MORE of the total sales!!!!!

    The credit card companies are out of control with their fees.

    Please explain to me why it costs them more to process a $100 transaction than it does to process a $20 transaction?
    I am very seriously considering that with these changes I will change the pricing for the web site items, where those that use debit cards or “e-checks” will get a 5 to 10% discount, just so I can get the lower transaction costs and have those that use the “reward cards” pay extra for that “reward” instead of me and other customers being the ones that pay for it.

  29. As if this were not bad enough, my friend was told this week that he would be charged $5 extra for paying his bill in cash!

  30. It is sad to hear all the whining about credit cards from the merchants! Don’t they realize that many sales would be lost if people couldn’t (or wouldn’t) use their cc? As noted above, customers would have to carry large amounts of cash to shop and many who would whip out a cc would think a lot longer before paying cash. In my youth, people either paid cash or had an account at a store. Can you imagine the costs incurred carrying accounts receivable?

  31. There are plenty of merchants eager to negotiate the price of anything. Just vote with your feet and refuse to pay outrageous markups and additional fees. We have all been brainwashed to believe retail stores set a standard price of goods for all buyers. An instructive example is that no two passengers on many flights paid the same fare. Give yourself a coupon and keep control of your pocketbook.

  32. Kind of sad.I’m starting to see many gas stations charging 10 cents a gallon more for credit cards.Making my rewards credit card useless.

  33. My favorite grocery store stopped accepting checks.Only take cash,credit or debit cards.Fortunately they aren’t charging any extra for taking my rewards credit card,like many gas stations are.

  34. Credit card issuers/banks have no interest in consumer protection to be sure. But retailers or consumers who want to go back to an all cash system are short sighted. Most retailers do their greatest business during the holiday season. Cash transactions take much longer than credit transaction. Imagine the lines of customers seething at the amount of time they are spending in line as the customer at checkout complains s/he didn’t get the correct change back or after ringing up $233 in sales realizes s/he is a few dollars short or the cashier has to call the manager over because s/he doesn’t have enough ones or tens to make change. Retailers wanted us to go toward credit cards and moved society in that direction. If they want to make it inconvenient on the consumer now, I say we pay for all our transactions in pennies. But if you have ever tried paying for a transaction with rolled coins, guess what? Many retailers won’t accept that form of cash.

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