Canada Computers passing on their Credit Card processing charges onto the consumers?!

[fantom]

So I was in the Canada Computers on Kennedy Rd the other day, trying to pay for an item by credit card only to hear from the cashier that there is a surcharge (on top of the price she was going to charge me) for credit card payments. And no, I'm not talking about the cash price vs. debit/credit price advertised in store/online.

So, after asking her what that charge was for and her not being able to answer it in any understandable manner, I realized that it was actually the payment processing charge that Moneris charges them for each transaction. As soon as I brought that up and asked about it specifically (if that's the case) the cashier shut up and border-line ignored me (as if she knew I got it figured out) and just stuck to the question "Do you want to process this purchase or not...?" in a way...

Even after complaining that they shouldn't do that, she wasn't budging, so I went ahead and paid the extra $2 (as I had no time to argue that day, really, and was in a rush anyway), but I did call up Moneris within minutes of getting back home and inquired about this whole process/treatment.

And guess what - merchants are not allowed to be doing that (passing off the payment processing charges onto the clients) as they get charged 2% and some fixed cost per each transaction... so sure enough, I filed a complaint (with all the transaction details) that will hopefully end up in the hands of someone who can do something with it and stop CanadaComputers from this B.S.

I just didn't remember any other stores charging me extra $$ for these transactions in the past, so this one must be one of the only ones doing that...

[septimus]

This practice is very old. I'd say, a decade or so. Nothing has changed. Why would it? Just don't shop there.

[bylo]

Just don't shop there.

Or if you do, bring cash.

Actually I'm somewhat sympathetic to Canada Computers about this. At most stores the 3% credit card merchant fee is embedded into the retail price. That means everyone, including those who pay cash, end up paying more for our merchandise. At least stores like Canada Computers offer their customers a choice and only charge those who prefer the convenience of a credit card.

BTW the real reason why VISA and MC don't like merchants to do this is because it makes it clear to credit card users that they're paying an extra 3% to use their "free" credit card. Credit cards aren't free no matter what VISA and MC would have you believe.

[sexyj]

And guess what - merchants are not allowed to be doing that (passing off the payment processing charges onto the clients) as they get charged 2% and some fixed cost per each transaction... so sure enough, I filed a complaint (with all the transaction details) that will hopefully end up in the hands of someone who can do something with it and stop CanadaComputers from this B.S.

I just didn't remember any other stores charging me extra $$ for these transactions in the past, so this one must be one of the only ones doing that...

Buy your stuff at FS/BB and get 100% mark up. No extra $$ there...


That's why all their prices is marked as "cash discounted"

[Jon Lai]

This doesn't make sense. The "regular" price should already have the surcharge included. Maybe the cashier was new and mistaken? It doesn't make sense that you have to pay the regular (not cash discounted price) AND pay an extra 2%, if I'm reading things right.

[sexyj]

This doesn't make sense. The "regular" price should already have the surcharge included. Maybe the cashier was new and mistaken? It doesn't make sense that you have to pay the regular (not cash discounted price) AND pay an extra 2%, if I'm reading things right.

But who's saying regular price already have the surcharge included ?

The main reason I believe the "cash discount: is there because they want to protect themselves from credit card fraud and other credit card charge back schemes by encouraging people to use cash/debit.

[Syyn]

This is indeed illegal. Hopefully some unwanted attention will force them to stop.

[Bookpreviews]

If you contact your credir card company they will give you the $2 back if you complain against the store and them possibly fine them and tell them to stop.

It is in the Visa policy the are not allowed to do that.

Some taxi drivers here were trying to charge $1.50 for credit card use and I called a bunch of times and now only 1 company seems to charge those fees

[Jucius Maximus]

OP, if you don't like it, then go and shop at Best Buy, or TheSourceCC. It has been like this for as long as I can remember.

ALL stores that accept credit cards pass on the processing costs to the customer. It's hidden in the product's price.

You'll eventually realise that all the really nitty-gritty competition in the computer equipment market is based on customers going from one store to another to save 50 cents or a dollar.

Stores are really skirting the rules here by advertising "cash discounted" prices, so as not to violate their merchant agreements by adding a "credit card surcharge".

I really have no problem with it because merchant fees are really what hurt the small businesses since they don't have preferential merchant agreements versus much larger chains.

This doesn't make sense. The "regular" price should already have the surcharge included. Maybe the cashier was new and mistaken? It doesn't make sense that you have to pay the regular (not cash discounted price) AND pay an extra 2%, if I'm reading things right.

Unfortunately all Canada Computers pricing is cash discount, and it is like that with Infonec and all the similar low-price low-service type of shops.

Unfortunately 90% of customers are stupid. If one store sells something for $99.99 (not including 3% cash discount) and the next store sells it for $98.49 (3% cash discounted) then where do you think the customers will go? People are stupid and will not account for the cash discount and/or not read the fine print.

This is really one of my pet peeves because it drives all the really annoying surcharges in the airline business (lower seat price, but luggage surcharge in the fine print) and all the "admin fees" and "mandatory $398 etch warranty" at car lots.

This is indeed illegal. Hopefully some unwanted attention will force them to stop.

Credit card surcharge is against the merchant agreement.
Cash discount is not against the merchant agreement.
Neither are illegal.

And no, they won't stop. I hope they won't stop. I prefer to be able to make a purchase without having to choose between paying money to banks / credit card networks and giving fatter profits to the store.

[Jon Lai]

But who's saying regular price already have the surcharge included ?

The main reason I believe the "cash discount: is there because they want to protect themselves from credit card fraud and other credit card charge back schemes by encouraging people to use cash/debit.

No, their reason is to avoid the credit card surcharge so they offer a lower price for cash/debit.

I know from personal experience.

[Spiderpal93]

This doesn't make sense. The "regular" price should already have the surcharge included. Maybe the cashier was new and mistaken? It doesn't make sense that you have to pay the regular (not cash discounted price) AND pay an extra 2%, if I'm reading things right.

+1.

This does sound weird. I have bought from Canada Computers using credit card numerous times before. If you pay by credit card then it should be their "Everyday low price" and there shouldn't be any surcharges. I remember Canada Computers used to charge additionally if pay by credit card but that was a couple years ago before they expanded.

OP, a lot of smaller computer stores do charge you extra if you use credit card so this is not uncommon (But is defintely uncommon for Canada Computer's though).

[williamsauga]

whats canadian computers? never heard of it, go figure

[rabbit]

I thought the dude is saying that he was charged $2.00 on top of paying the non-cash discounted price (ie. he's already paying an extra 3%).

"And no, I'm not talking about the cash price vs. debit/credit price advertised in store/online. "

[number8888]

Never bought anything in CC using credit card. But I would assume that if using a CC you would pay the regular price as that should include the surcharge and that's it. It's like they are double dipping and that's against the argreement..

I believe that using interac is considered cash so I usually just use that (since it's totally free with PC account).

Many computer stores will charge a higher price if paying by CC as the margins are slim on computer products and yet the market is very competitive. I have come across a lot of smaller shops that would add a fee if transaction is less than 5 dollars or something like that. Some would just refuse to accept CC's outright.

[bylo]

BTW it's not just retailers like Canada Computers who charge extra for credit card payments. Many municipalities (property tax) and utilities add a surcharge of 2.5% or 3% when you pay them by credit card.

As I said before, making this an optional, explicit charge leads to better transparency and gives consumers the choice to save money by paying cash or debit. Remember that credit card perks ranging from buyer protection to airline points to cash rebates, etc. aren't "free" no matter what the card company tells you.