Let’s make things more expensive for customers… | Page 2 | GTAMotorcycle.com

Let’s make things more expensive for customers…

Could this be the government's way of moving us toward a digital monetary system, where you don't use credit cards or cash, it comes all out of your government setup life account that they can supplement or deduct from depending on whether you are poor or rich, good or bad social person etc... ;):unsure: Any conspiracy theorists?:cautious:
 
chingo said:
Could this be the government's way of moving us toward a digital monetary system, where you don't use credit cards or cash, it comes all out of your government setup life account that they can supplement or deduct from depending on whether you are poor or rich, good or bad social person etc... ;):unsure: Any conspiracy theorists?:cautious:
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Wait till they put expiration dates on the digital currency in your account...

bfsi.economictimes.indiatimes.com

Digital Currency: Yuan comes with an expiry date: Spend or it will vanish - ET BFSI

Yuan: China's digital currency is programmable to have an expiry date, which gives its central bank to effectively and boost consumption demand or impose negative rates as required.
bfsi.economictimes.indiatimes.com bfsi.economictimes.indiatimes.com
 
Relax said:
My car mechanic won't take cash anymore. He said something to the effect that everyone wants to pay him in cash, and there's only so much he can do with it all... Must be a good problem to have.
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Not a problem if you're paying for renovations to you're house. 😉
 
Most small business owners realize why cash is preferred after a couple years of depositing too much in the bank and seeing what they have to come up with at the end of the year which is usually a big shock. Another shock is getting a bill in the mail and having to pre pay taxes for the next year in installments. Ask me how I know, when I first read it I thought it was a mistake having already paid in April. Just when you think your bank account is starting to grow a bit they hit you with a 10k bill forshadowing a portion of what you'll be paying next year.
Even on a $300 bill, and offering to split the taxes with the person, $320 instead of $340, many will make an extra stop at an ATM to save the $20.
 
mimico_polak said:
Kick us while we’re down right? I’m sure businesses will lower prices accordingly since I’m sure the cost of the credit card fees were already baked into their costs.

Nobody will double dip. Maybe time to start carrying cash again.

www.ctvnews.ca

Canadian businesses can charge credit card fees starting Oct. 6

Starting Thursday, businesses in Canada will soon be able to pass credit card fees on to their customers, thanks to a multimillion-dollar class-action settlement involving Visa and Mastercard.
www.ctvnews.ca www.ctvnews.ca

www.ctvnews.ca

Nearly 1-in-5 merchants considering credit card surcharge ahead of new rules: survey

A new survey from the Canadian Federation of Independent Business (CFIB) says 19 per cent of small businesses are considering adding a surcharge on credit card transactions to offset processing fees, while most remain on the fence for fear of losing customers.
www.ctvnews.ca www.ctvnews.ca
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Add this as well,
Nothing like creating more demand and effectively raising pricing by limiting supply.
Also I believe the gov taxes they reduced over the last few months will come back on in a month or so, should be an interesting surge in pricing again for consumers.

As for the CC thing, I believe this is typical in Europe, not to say it justifiable either.
 
sburns said:
Add this as well,
Nothing like creating more demand and effectively raising pricing by limiting supply.
Also I believe the gov taxes they reduced over the last few months will come back on in a month or so, should be an interesting surge in pricing again for consumers.

As for the CC thing, I believe this is typical in Europe, not to say it justifiable either.
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Yup, Dec 31 is the expiry of the gas tax reduction.
 
Lightcycle said:
Due to the pandemic, some businesses around here have gone to a no-cash policy.

Yes, it's legal tender, but according to the Bank of Canada businesses are not required to accept cash as payment. "Legal tender" is starting to lose its relevance in the 21st century.
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A loser cousin wrote the minister of finance about IKEA not letting him pay for his hot dog with a looney. He wasn't being facetious. Here we go
 
mimico_polak said:
If there is a ‘no cash’ policy then a business should not be able to force a credit card additional fee on the customer.

Choice needs to be allowed so a person can decide which way. Convenience? Sure here’s an extra 1-3%

Cash? No problem here’s the price.
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The vendor is the monkey in the middle , between the banks that want more compensation for service fees, loyalty programs etc and the consumer that wants the lowest cost. Who do you cater to?
 
nobbie48 said:
The vendor is the monkey in the middle , between the banks that want more compensation for service fees, loyalty programs etc and the consumer that wants the lowest cost. Who do you cater to?
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Depending on how this gets implemented, it may reduce costs. If vendors charge differently depending on the card, that may change consumer behaviour. If the vender charges me the full 3.5% for a card that I get 1% on, I won't use the card. I would investigate a non-reward card that I could use for free though. I like credit cards conceptually and don't have a huge issue if this cuts some of the costs out. As it is now, I pick cards based on the best rewards for me with little concern over the costs to the vendor (which is ultimately paid by consumers but not equitably as the person paying cash pays part of my credit card fee).
 
GreyGhost said:
Cc surcharges used to be prohibited but cash discounts were allowed. I didnt mind that program. We'll see how this plays out. Wife and I put most of our spending on cc. Probably less than five transactions a month interact or cash. That may have to change if they start to ratchet up the fees.
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Ditto. I used to pay cash for all small stuff until Covid and since then went debit. I rarely pay cash for anything.

I like it but if debit goes with a surcharge I'll start opening the wallet more often.

Our big CC usage is on gas for the car. Ours isn't too bad but I know people that go through $500 plus a week.

Does Costco accept cash in the stores? They don't for gas.
 
mimico_polak said:
Same. Almost never pay cash or Interac….but that may change moving forward.

Plus I wonder how this will affect cash back cards or reward systems.
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A friend of my daughter even pays her mortgage on CC with a reward. Pays for a trip south every year.

Add to the confusion, how about a business expense where the company gets the bill but the user gets the reward?
 
nobbie48 said:
Ditto. I used to pay cash for all small stuff until Covid and since then went debit. I rarely pay cash for anything.

I like it but if debit goes with a surcharge I'll start opening the wallet more often.

Our big CC usage is on gas for the car. Ours isn't too bad but I know people that go through $500 plus a week.

Does Costco accept cash in the stores? They don't for gas.
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I hate debit with a passion. Try to get money put back in your account if there is an issue. The majority of the time banks tell you to f off as you are out of compliance with their policy which requires frequent pin changes (that nobody does as it is a piss-poor policy and leads to one pin for everything or having it written down. A much better policy is a unique pin for every card but don't require changing it). A disputed credit card charge gets a star and doesn't affect your cash flow.
 
OntFF said:
As someone who accepts credit cards; I understand it...

With all the 'premium' and reward cards that banks and Credit card companies are offering - they are dinging me (and all merchants) with variable and ever-increasing processing fees...

Depending on the card, I can pay between 1.5% and 5% of a transaction value to the card company, for the 'privilege' of accepting their card. That's a decent slice right off the top...

I don't like it - but I understand where it's coming from...
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What is your mark up? That's where it hurts.

The 1.5% to 5% comes out of profit so may equate to several times the percentage of profit. IIRC Gas stations work on a low mark up / high volume model. Jewelry the opposite.
 
AllistonGT said:
Not a problem if you're paying for renovations to you're house. 😉
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How is this going to affect the Horribly Stupid Tax, particularly with regards to work on real property (Housing etc)?

Before HST a contractor was considered the end user for purposes of Provincial Sales Tax and the federal tax was built into the product.

Then, if you got a price of $10,000 for a job and asked about paying cash the contractor's costs wouldn't have changed but cash could let him hide the income. He might give a discount out of his pocket.

Now ask about cash and you hear "We won't charge you the HST". He gives away nothing but the government's share and still gets to hide income.

Money laundering may have to change.
 
nobbie48 said:
How is this going to affect the Horribly Stupid Tax, particularly with regards to work on real property (Housing etc)?

Before HST a contractor was considered the end user for purposes of Provincial Sales Tax and the federal tax was built into the product.

Then, if you got a price of $10,000 for a job and asked about paying cash the contractor's costs wouldn't have changed but cash could let him hide the income. He might give a discount out of his pocket.

Now ask about cash and you hear "We won't charge you the HST". He gives away nothing but the government's share and still gets to hide income.

Money laundering may have to change.
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Vast majority are happy to save themselves 13%. Contractor quotes the price. Customer agrees. At that point why would a contractor drop his quote? Customer's choice.
 
I have no issue with the card owner paying the extra fee. I know the card companies are in many cases gouging into margins, now the card user will have to decide on which card to use. Expensive cards like amex may have some reckoning.

I am mostly a consumer but I have had to deal with the percentages the card companies take as the "retailer" from time to time.
 
backmarkerducati said:
I have no issue with the card owner paying the extra fee. I know the card companies are in many cases gouging into margins, now the card user will have to decide on which card to use. Expensive cards like amex may have some reckoning.

I am mostly a consumer but I have had to deal with the percentages the card companies take as the "retailer" from time to time.
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I have a huge issue with it. Retailer offers customers the ability to use a CC. It's part of their business model. It's their expense. Cost of something they offer to get more sales. It's in their pricing already. Same as paying electric bill, payroll, rent, etc. If a retailer is relying on 2%, then thats not much of a business to begin with.
Being so eggar to cover these expenses, next time GP bikes has a big sale, offer to pay full price to help them out. 😉
 
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