Visa and MasterCard to allow retailers to put surcharge on credit card payments

[TelusSux]

CC companies know that a consumer won't mind the small surcharge for small $30 or $40 purchases -- just not worth the hassle to use cash. But it definitely adds up for the merchant. Can't merchants be creative and give cash payers additional incentives like being entered into a draw to win a product/service? Good for the cash payers, good for the merchants, bad for the CC companies.

[flafson]

CC companies know that a consumer won't mind the small surcharge for small $30 or $40 purchases -- just not worth the hassle to use cash. But it definitely adds up for the merchant. Can't merchants be creative and give cash payers additional incentives like being entered into a draw to win a product/service? Good for the cash payers, good for the merchants, bad for the CC companies.

That's not a bad idea but problem is, the credit culture is deeply rooted to a point that many customers would feel like they are 2nd tier if you don't give them whatever you're giving to the people paying cash. By the way, i prefer not to accept cash but rather debit.

[sillysimms]

CC companies know that a consumer won't mind the small surcharge for small $30 or $40 purchases -- just not worth the hassle to use cash. But it definitely adds up for the merchant. Can't merchants be creative and give cash payers additional incentives like being entered into a draw to win a product/service? Good for the cash payers, good for the merchants, bad for the CC companies.

I think it really depends on the customer. I know if it was me and there was a surcharge for credit cards, I'd buy less or shop a lot more at the stores that decided not to ad a surcharge for credit cards. I won't use debit ever (if there is fraud I don't want the money coming out of my account) and carry little cash. If I had to pay a surcharge for using a credit card, I wouldn't be buying much at the merchants that had a surcharge, since I'd only use cash there.

If the cc companies allow a surcharge, I am willing to bet a lot of the larger merchants won't bother with this and those are the places I personally would be shopping at a lot more. Regardless, under no circumstances will I ever use debit.

[Sean_A]

well i happen to disagree. When the consumer looks at a product, he/she decides that they might purchase that product based on the price seen. If a cash discount is available, they might not take advantage of it because they have already committed to the sticker price.

Now if there was a "up charge" of 2%+ when you are at the cashier, then it would probably deter the sale.

I'm no marketing expert. I hope you are right and I'm wrong =)