Everyone violating Visa merchant contract?
Hey everyone, I've bought a few guns through Gunbroker, but I keep running across merchants charging their customers 3% for accepting payment through the Visa or Mastercard networks. It was my understanding that when a merchant signs up with Visa, the merchant agrees not to impose additional credit card surcharges on customers. Is every merchant using Gunbroker violating their contracts with Visa, or is there something I'm missing, here?
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When I sell a consignment gun, I charge 10%, if someone pays me with a credit card I lose that 3%. I need to make that 10% to pay the bills and keep the store going! And the way the credit card companies keep sticking it up our butts, I really have no sympathy for them at all and neither should you! None of them are going broke! 0 -
Not every merchant, just the ones charging the additional 3% for using a credit card are violating their agreement. There are a good number of sellers here who do not charge a credit card fee. 0 -
quote:Originally posted by Chris8161
When I sell a consignment gun, I charge 10%, is someone pays me with a credit card I lose that 3%. I need to make that 10% to pay the bills and keep the store going! And the way the credit card companies keep sticking it up our butts, I really have no sympathy for them at all and neither should you! None of them are going broke!
I understand how thin margins are, and I'm no socialist, but I do understand why Visa doesn't want merchants passing transaction fees on to customers. Also, you should be aware that when you pass on your transaction fee costs to me, the customer (remember, we're not talking about Visa, we're talking about your customers), I add that to the price I'm shopping, anyways. You aren't getting a lowball bid in, I compare total cost between all sellers. That includes shipping, tax, and any other fees.
So, in effect, you're really just breaching your contract with Visa and putting your entire business on the line without getting any edge on your competitors or making more profit. I guess I'm presuming to tell you your business, but that's just the way I see it from my end.0 -
no, most merchants offer items at a 3% cash discount... they don't charge more for using a CC, the buyer simply does not get the cash discount... that's why it works with no violations of any agreements...
But, think about the fact that we are all paying 3% more for everything we buy these days because so many people have decided to use their credit cards for everything they buy...0 -
I believe that most merchant contracts prohibit charging credit card customers any additional fee. It does not prohibit the merchant from giving a discount for cash or money order.
Often you will see "Sales price reflects cash discount not available to credit card customers" or something similiar.
If no such disclaimer is used, the seller should not hit the buyer with a surcharge. Here on GB the seller has the option of listing all the payment methods he will accept. It is misleading to say you'll accept credit cards and not disclose that you'll charge an extra 3%. If the extra 3% is not mentioned and billed to the CC, the buyer may be able to get that 3% refunded. Charging more on the card than was authorized may also be considered fraud.
If you wanted to pursue the matter you might get that sellers merchant account closed.
3% is a fair price for the convenience of using a CC in a ttransaction. If the seller auction says "add 3% for credit cards" you aren't being hoodwinked- either pay the 3%, pay cash or don't bid.0 -
YOU pay at least 3% every time you use your CC if you know it or not.
So dealer A sells a gun for for $100 + 3% for CC so you pay $103 for it and are mad.
Dealer B sells the same gun for $110 and no CC fee so you pay $110 which = $100 + 10% CC fee but you are happy.
Go figure.
YOU pay a CC fee NO matter where you shop. Either you pay KNOWING the % you are getting charged or you pay it by the mark up the retailer uses for everything. If you pay cash you are paying a CC fee at a normal retailer unless they offer a cash discount.0 -
It would seem that credit cards cost the dealer more than 3% to take, from my experience with them its probably more in the 5% range unless the retailer is selling a lot of goods. 0 -
I use a credit card for traveling- hotels, airlines, rental cars, and restaurants are impossible without one.
For my personal purchases, I pay money. Dead Presidents. And I will not hesitate to ask a merchant "Discount for cash?"0 -
Seems like it makes folks mad, I'm just asking whether all the merchants stating they charge a 3% service fee for running the debit or credit cards are in breach of contract. I heard it's really just a case of the "cash discount," but really, do you really think Visa is going to buy that line? It's insulting to your customers' intelligence to try that line on them. You're really just trying to pass through the costs of doing business, because you're in an industry with razor thin profits and quick price corrections.
Like I said, I really don't care, it's no money out of my pocket, because I'm not going to pay more than I want to. It's just annoying having to click through the shysters' fake prices to get to the details and add up the real prices for their products. Perhaps that's why Visa put it in the contract they signed...0 -
quote:Originally posted by mark christian
Topics dealig with hre actual operation of the Auction site and any and all billing details are out of the preview of the forums. You'll need to take you issues with credit card charges to Gun Broker customer serivce.
You are new here so I'll just lock the topic...This time. Don't come back here with the same topic again.
Really? OK, I'll just shoot an email over to Visa. Enjoy.
Yes, such topics really are out of bounds in the forums0 -
Topics dealing with the actual operation of the Auction site and any and all billing details are out of the preview of the forums. You'll need to take you issues with credit card charges to Gun Broker customer service.
You are new here so I'll just lock the topic...This time. Don't come back here with the same topic again.0
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