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Buying Motorcycle with Credit Card

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revrandy said:
If you read the merchant agreements for both Visa and MasterCard, they forbid merchants from charging a surcharge to use their card. In other words they cannot charge you the 3% fee.

When you run into this with MasterCard, you can report the merchant online, with Visa you have to call. I have called in the presence of the clerk and had them chat with Visa.

Those same merchant agreements also forbid a merchant from refusing a transaction for not showing ID.
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I guess that's why the smoother merchants offer a discount for cash (as opposed to fee for credit).

But that explains why I was able to do it.
 
revrandy said:
If you read the merchant agreements for both Visa and MasterCard, they forbid merchants from charging a surcharge to use their card. In other words they cannot charge you the 3% fee.

When you run into this with MasterCard, you can report the merchant online, with Visa you have to call. I have called in the presence of the clerk and had them chat with Visa.

Those same merchant agreements also forbid a merchant from refusing a transaction for not showing ID.
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Randy,


They changed the rules/regulations this year. Merchants can pass along the cost of cc transactions to the consumer now. It's part of the credit card code of conduct. An agreement between the Canadian financial institutions and federal government of Canada. They have to do it a specific way but, they can do it. This hasn't trickled down to the US

As for paying for a vehicle, it depends on the arrangement the dealer/merchant has with the payment processer. Some processers will withhold the deposit to the dealer/merchant until they can confirm the transaction is legitimate. Some will cap the maximum transaction amount. The is hundreds of different arrangements but, it's between the payment processer and the merchant/dealer.

Also, the interchange fees varies depending on volume and risk of the business. Most pay less than 3%. You can find out exactly what they are on Master Card and VISA's websites. There is additional fees not shown but, the actual cost to them is closer to 2%. Except Amex. They cost much more.
 
2live&ride said:
seems to me that this statement is a little silly, dealers open up shop to make sales not sit there and look pretty...
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Dealer should be negotiating a better deal with the cc carrier they use. Last place I worked that took cc was paying Visa 1.75% and MC 1.5%
 
thats crap... if they want to sell you the bike, they'll take the CC
lots of places are becoming very arrogant, bullying people around...
will they take $20 up for you getting a certified cheque? no, then why would you have to take the hit for the cc
so you have to pay to spend your money...

they have to sell, more then you have to buy... if 3% is worth them losing the sale
fawk them, you don't want to deal with people like that...
 
Hammer said:
thats crap... if they want to sell you the bike, they'll take the CC
lots of places are becoming very arrogant, bullying people around...
will they take $20 up for you getting a certified cheque? no, then why would you have to take the hit for the cc
so you have to pay to spend your money...

they have to sell, more then you have to buy... if 3% is worth them losing the sale
fawk them, you don't want to deal with people like that...
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I think every dealer/merchant would love to take cc transactions for any purchase and for any amount. They are restricted by the payment processor and there are risks involved. For instance, there is a dispute between the CIBC and a customer for a car that was purchased for over $80k. The dealer doesn't seem to be involved but, the customer says they never made the purchase the the CIBC is suing the customer for the amount. This one was news worthy but, there are thousands of transactions for lessor amounts that end up in dispute. The bike could be delievered with a scratch or odo reading with some extra clicks. Customer disputes the charge because they feel they didn't receive the merchandise they wanted. Customer refuses to pay the bill until the dealer makes it right. The credit card company doesn't want to spend time mediating this type of thing and it can get long and ugly sometimes.
 
El Zilcho said:
A 3% of 10,000 is $300. Not a whole lot of a difference.
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I'm not sure of mark-ups but if the profit on a bike is say $1500 the $300 is 20% loss to the dealer. On accessories the markup is I'm sure higher and the effect on profit less. How would you handle a pay drop of 20%.
 
My dealer wouldn't allow me to pay for the bike on my credit card.... I had no issues with that as he already did a good deal for me. When I was in the car business many dealers allowed this until they saw what it did to their bottom line. Doubt many dealers will accept credit card payment for the full purchase price of the bike. Good luck if you can find one however.
 
I purchased my first bike with my VISA, $5000+ with full gear no problemo. Bought it at the Honda Dealership on Eglinton/Don Valley before they closed.
 
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