Credit card surcharge

I've experienced this occasionally when dining out of town, but was a little surprised to see that a local restaurant I frequent now has a surcharge for using a credit card. Debit cards don't incur a fee. So, I guess my 3x points restaurant credit card isn't going to do me much good there.

I understand that merchants get hit with a fee for swiping credit cards (I think the fee should probably be a lot lower than it is), and I know other retailers (such as AT&T) have essentially declared war on these fees, offering better pricing for using a debit card or autopay from a checking account.

I'm concerned that customers may take offense to this change. I wonder whether a slight menu price bump might have been a better solution.

The mexican restaurant where we do karaoke twice a week has been adding the credit card surcharge for the last 6 months. I was at first shocked (only because they didn't tell us and nothing was posted inside the restaurant).

I used to negotiate the cc rates at the corporate level for Chi-Chi's (35 years ago), so I remembered part of the contract was you were not allowed to add a surcharge or charge a different price.

When I got home that first night, I immediately googled it, and yes the cc companies now allow an establishment to add a surcharge. Live & Learn!

I guess I am used to it now, but I would rather see it this way than bumping the menu price...I could pay cash and save the 75-90 cents...so this way it's in the consumers hands.

[Robin Garr]

Jerry, thanks for the info on cc surcharges. I also thought that the credit card companies forbade it, so it's interesting - if annoying - to know that they no longer enforce that.

It is an irritating practice for sure, although I guess the smaller and more mom-and-pop the business, the more inclined I am to forgive it. I do wonder if they run some risk of folks decreasing the tip to make up for the loss, though.

I was in Manhattan this past Memorial Day weekend. Our first stop at a corner pizza joint added 3.3% to our bill since we used a credit card. This occurred several additional times to the point where it seemed common there (their sales tax rate is 8.875% as well). It doesn't surprise me to learn that it hitting home as well.

This is rather ironic because it seemed like the trend was not to take cash anymore.

I was at the CHI Health Center arena in Omaha last month. They have been cashless for several years now, but this was the first year I noticed "reverse" ATMs that would accept cash and spit out a prepaid debit card. Apparently there is no fee for this, in that venue. I'm sure there were complaints that a cashless policy discriminates against the unbanked.

Semi-related life pro tip for when you receive a prepaid card as a rebate or gift: The easiest way to use it is to buy an Amazon or other gift card where you can select the exact denomination of the value of the prepaid card.

Another relatively easy way to use it is to conservatively guesstimate how much it costs to fill your car's tank with gas, and divide it in half. e.g., if it takes $50-60 to fill my car's tank, we'll pick $25. Then, wait until your car is below half a tank, go to a gas station, and ask the attendant to put $25 on your pump. It's a little more convoluted than the first way, but can also be entertaining: I had a $100 gift card I used this way, and between that and driving my EV instead of my gasoline vehicle, I spent $0 of my own money filling up my car with gas for a period of several months.

[Robin Garr]

Heh ... that almost sounds like beating the system!

The Amazon hack is one of my favorites which I have used many times. Prepaid giftcards are generally a rip-off to the recipient (and giver) who inevitably leaves an unused balance forever.

I'm sure nobody wants to listen to this and, perhaps, only a few years ago I would have been labeled a conspiracy nut. All cash means no paper trail for the things you buy. You might think that's unimportant ("Who cares what I buy? Big whoop.") but we are currently, about 2 steps away from insurance companies denying claims based on dietary habits. In the hospital for emphysema? It's very possible that in the near future insurance companies could deny your claim after checking your purchase history and discovering smoking products. Or deny hospital care based on the number of high fat products you buy. And if you think I'm an alarmist just remember that RFK Jr wants to start a national registry for people with autism- any kind and of any degree. Of all the personal data people can steal, your buying habits are the most personal and valuable.