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Lohsing
06-09-2004, 08:24 PM
My understanding is that using a credit card costs the retailer 2% of the total cost of the service / product paid for by credit.

If that is the case, why is it some retailers are more reluctant to offer a 2% discount for cash? Is it just me, or do I think like a computer retailer too much?

Lo.

godfather
06-09-2004, 08:27 PM
The amount charged is variable, depending on the level of business done with the Card Merchant.

There is an intangible cost in handling cash as well, in counting, reconciling, and banking. Not to mention security.

Lohsing
06-09-2004, 08:29 PM
I guess so... mind you, I consider paying by eftpos with my cheque account is as good as cash...

Lo.

andrew93
06-09-2004, 08:31 PM
The larger retail chains negotiate lower credit card fees with the banks (although american express is much higher than the 2% you used) so there isn't as much to negotiate as you might think - it's the smaller businesses that pay the higher credit card fees.

Plus where a retailer offers an item at a certain price in conjunction with either an interest free period or a finance option / incentive, then they must offer the same price to everyone no matter how you want to settle the transaction. If they don't then they will get caught under one of the retailer acts - I think one of the larger appliance retailers was nailed some time ago (but don't quote me on that). Billy T will be clued up on this subject.

miknz
06-09-2004, 08:47 PM
Hi,

We are charged 1.6% for visa/mastercard and around 6% for amex transactions. I try and avoid amex like the plague. As far as I am concerned, and as GF said earlier, it makes no real difference how you pay it still costs to get the money into the bank whether it is deposited manually or elec. Eftpos in my opinion is the one of the biggest advancements in retail in recent times, it beats the hell out of me why some people still insist on using cheques for their day to day personal needs.

Sb0h
06-09-2004, 08:48 PM
If a retailer ends up with a large amount of cash there will also be substantial bank fees for "counting" it.

IIRC you can ask for a cash price in a store and then elect to pay by credit card or Hire Purchase or any other method and as the retailer has agreed to that price you can hold them to it. So cash really has no advantage these days, ask for a discount and if the retailer gives you one use your credit card and get the interest free period. If they are unwilling you can either go somewhere else or buy anyway.

~~~~~ s y ~~~~~
06-09-2004, 10:23 PM
> is deposited manually or elec. Eftpos in my opinion
> is the one of the biggest advancements in retail in
> recent times, it beats the hell out of me why some
> people still insist on using cheques for their day to
> day personal needs.

Agree, I've just started work, and so at lunchtimes I'm always having to eat out at Burger King and the likes. Just seems to me that cash aint working, so I'd probably only carry Eftpos to pay for $1.50 coke in the future. The only thing I'd want to see is, depositing money, hence crediting your account, at every day stores, just like you cash out. Why? Because I get paid cash, which I need to put into the bank, from my other part time job. [No! I don't think it's illegal/paying under the table, I'm 'employed' by my school] Mind you, most teenagers I know have 'a few' jobs. Ive got three.

;-)

drb1
06-09-2004, 11:55 PM
> recent times, it beats the hell out of me why some
> people still insist on using cheques for their day to
> day personal needs.

Cheques a very evidential, after the fact.

Today the have added security everyone looks at them funny and remembers who gave it to them.

It will be a long time before company accountants give up the controll a cheque book gives them.

JJJJJ
07-09-2004, 05:40 AM
I hate eftpos. Standing in check-out queues while some dear old lady tries to remember her pin number, and has about three tries before it works. And why do people use it to pay for very small items? Plus the charge for useing it.
I believe in paying cash for normal small items. Cheque or c/c for dearer ones. And I have no interest in what the shopkeeper wants. He is there for my convenience. Though some of them act as though they are doing you a favour by letting you buy from them.
I do not have a pin number for anything.
Another thing that realy turns me off. "The advertised price reflects a 2% discount for cash. CC sales will incur the extra 2%". Not from me!!!
And electronic banking. NEVER. I incur all the costs an hastle and the shopkeeper gets the money straigh into his account. You must be joking.
I'm the customer and I do it my way. If you don't like it,tough. There's plenty more shops that will.
Jack

Mike
07-09-2004, 06:57 AM
>> And why do people use it to pay for very
>> small items? Plus the charge for useing it.

I use EFTPOS to pay for 45c stamps at the post office, or similar. I've even used it to pay 20c when I was 20c short buying something. Usage charges? I don't have any. If I did I'd probably draw out cash more often and pay by cash.

Mike.

Raymondo
07-09-2004, 07:17 AM
Don't you just hate it when you have committed to a check-out queue in the supermarket and someone up front pulls out a cheque book!

And have you ever wondered why those who insist on using cheques will quite happily produce an eftpos card as i/d??

Ray

drb1
07-09-2004, 08:51 PM
>
> And have you ever wondered why those who insist on
> using cheques will quite happily produce an eftpos
> card as i/d??
>
> Ray

Because the eftops and Cheque account are not linked. Generraly the cheque account in this situation will traffic a large volume. Not linking enhances SECURITY.

How many times have I had to wait on certain days, as eftops cards are rejected or do not work, shop when there are less people or wait.

Raymondo
07-09-2004, 09:01 PM
I was only taking the mickey in a gentle way. I use eftpos and can't really understand why people stay with cheques. I am equally comfortable with the fact that there are a lot of people out there that don't want a bar of eftpos. Each to his own.

drb1
07-09-2004, 09:39 PM
Raymondo,

No offence taken, Try shopping in Tokyo, That will teach you about queing.

Exwesty
07-09-2004, 10:24 PM
Whats really dumb and I have complained on occasion when asked to pay it is the 25-40c 'Cheque Fee' that retailers feel obliged to ask for when I used to present my chequebook.
If I pay cash and they have to bank it then they incur a cash handling fee at the bank, and i believe that is a 1-2% over a certain limit per transaction.

If I pay by credit card then as above they incur a varying percentage as to how valuable they are to their bank and how many transactions they do.

Yet I can offer an another alternative and they want ME to pay their costs. The discussions have been interesting, "oh but it takes up our time banking them and the paperwork". Sorry thats just part of your doing business. "The bank charges us for banking them". Yeah well the power company charges for your lighting too and thats already reflected in your prices.

In these cases I will quite gladly hand over my credit card, the retailer LOSES % wise a damn sight more than 25 cents and I get airpoints or whatever. What they also lose is my respect for their stupidity and pig headedness.

drb1
07-09-2004, 10:42 PM
Westy,

I lived in japan when they brought in their gst (a Whole 3%) in our area of activity any seller who tried to, pass on this tax, lost our business.

Most have gotten over this 25c issue, if they havent get over them, dont give them your credit card, Dont give them anything.

nomad
07-09-2004, 11:11 PM
Japan is a very cash society.
Unless you are going to the big stores they accept credit cards. For all your food et al .. its cash. Adults carry $2k NZ cash and its normal. I bought my DSLR in cash, the dan NZ bank has a small limit so it took me two days to withdraw cash out just to buy a digital camera! Despite this its still v busy and v safe. One just need to go to Australia and people queue up.