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

Let’s make things more expensive for customers…

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mimico_polak

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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
 
mimico_polak said:
Nobody will double dip. Maybe time to start carrying cash again.
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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.
 
Years and years ago I was about to buy a nice tv for a friend's wedding present. Presented my Amex for payment. The salesperson hesitated and went to get the owner(?). He said I would have to pay an extra 10% if I used Amex as that is what they were charging him to accept it. Pocketed my card and left empty handed. He didnt seem to care.

Seems things have come full circle.
 
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.
Click to expand...

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.
 
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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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.
 
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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It may have ben prohibited by their contracts, but everyone still did it. Every time I bought a car, the dealers gladly took the deposit on my card at face value, but wanted 3% more if I paid the balance with it. I really don't remember now whether Canada Computers did the surcharge vs cash discount, but it's potato/potato.

I put everything I can on my CC since I get cash back, extended warranty, and loss replacement. That said, I don't think I've ever been able to take advantage of the extended warranty, and only had to replace a lost/damaged item once...
 
mimico_polak said:
Cash? No problem here’s the price.
Click to expand...

Used to be that paying with cash meant no sales tax either.

But then again, maybe I've shopped too often at Pacific Mall...

businessman-passing-money-under-table-to-partner-cash-his-corrupted-business-bribery-kickback-corruption-concept-flat-97945466.jpg
 
Lightcycle said:
Used to be that paying with cash meant no sales tax either.

But then again, maybe I've shopped too often at Pacific Mall...

businessman-passing-money-under-table-to-partner-cash-his-corrupted-business-bribery-kickback-corruption-concept-flat-97945466.jpg
Click to expand...

I pay cash to any small business that accepts it when doing big purchases, win win most of the time.

If the price of an item at a big box store is advertised and they then ask me for an extra % to pay with cc I'd probably walk out.
 
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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Wifes old hairdresser was doing 130k plus in cash yearly. Many vacations a year and everybody carries $9500 with them on the plane. No pictures of vacation posted online. Husbands income paid for the house and expenses in canada. Seems to be asking for trouble at that scale but she has done it for many years without cra reaming her.
 
GreyGhost said:
Wifes old hairdresser was doing 130k plus in cash yearly. Many vacations a year and everybody carries $9500 with them on the plane. No pictures of vacation posted online. Husbands income paid for the house and expenses in canada. Seems to be asking for trouble at that scale but she has done it for many years without cra reaming her.
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Our neighbours wife is a hair dresser. During Covid she made more money than ever before.

Just kept the clients coming in at a minimum $100/client….10 clients per day 5 days a week…do the math.

They’re very happy with that arrangement.

Another buddy makes lot of cash jobs…his cottage is fully decked out and it’s cash he gets and just transfer to the contractors up north. That’s how it’s done.

I need a cash job damnit.
 
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...
 
The financials around the credit card business are absolutely boggling.

1. There's $30B a year worth of credit card fraud that is mainly uninvestigated and basically written off as a cost of doing business.

2. Americans alone pay $120B worth of credit card interest and fees a year. This is not surprising...

3. Merchants pay $130B worth of processing fees. And that is set to rise in 2022...
 
Relax said:
That's always been surprising to me. I don't understand how anyone could pay 18% or more in interest when they can just get an unsecured loan from a bank for closer to prime?
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Couple of points:

- financial literacy is an ultra-rare trait. To quote Einstein: “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”

- those paying 18% CC interest may already have maxed out all other available lines of credit

I have witnessed so much impulse buying, instant gratification & keeping up with the Jones'... nothing surprises me about how much debt people take on these days.
 
when they can just get an unsecured loan from a bank for closer to prime?
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Just ??? ....maybe if you have a house ......after 37 years in business my total borrowing from the bank ( personal LoC ) was set at $12k and then late last year dropped to $5k for no discernible reason.
So you end up relying on CC which was easy for me to get 100k+ of credit. Played right you don't pay any interest but on occasion, if receivables are slow you pay the minimum balance until cash flow picks up.

Small business without owning a house sucks for getting credit.
 
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