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Credit card and cash payment

punter888

Alfrescian
Loyal
Anyone encounter surcharge 3% for using credit card in making payment?Been wondering nowadays why the charges was impose to us instead.Imagine for payment for over 1k will be = 3%+7% GST.
 

forumer

Alfrescian
Loyal
the 3% is normally added to the total (which already includes gst). So, its technically more than 10%.

it has been a long standing practice (to my knowledge) that small businesses ask you to absorb the 3% if you want to pay by credit card. Bigger businesses normally absorb the 3% credit card surcharge by default.
 

Leongsam

High Order Twit / Low SES subject
Admin
Asset
Anyone encounter surcharge 3% for using credit card in making payment?Been wondering nowadays why the charges was impose to us instead.Imagine for payment for over 1k will be = 3%+7% GST.

Any merchant who levies a 3% surcharge is making additional profits on the sale as even the smallest merchants pay only 2% to 2.5% commission to the card companies.

The largest merchants pay only 1% to 1.5%.
 

global25

Alfrescian
Loyal
I was informed, purchase of product by credit card, the merchant are not allow to charge additional outright to the consumer.

If we(the consumer) complain to VISA, the merchant will be barred from using the system in their premises.
 

WORK IT

New Member
Of course credit card companies encourage you to use them because for every transaction, they get a commission. On contract, they stated that a merchant is not allowed to charge this % to the customers.

But if the merchant is selling a product that has elastic pricing, i.e. I.T. products where the profit margin is razor thin like 3%; then he either choose to transact in cash or if you accept, pay for the Visa's commission. Mind you, I bought a laptop PC from Sim Lim last month and the shop didn't even want to accept NETS! :confused:
 

punter888

Alfrescian
Loyal
What vexed me is that I can't report this to case as the reciept do not have the breakdown for the 3% they charged...haiz
 

Leongsam

High Order Twit / Low SES subject
Admin
Asset
I was informed, purchase of product by credit card, the merchant are not allow to charge additional outright to the consumer.

If we(the consumer) complain to VISA, the merchant will be barred from using the system in their premises.

That's the rule in theory. However, it does not work that way in real life. :biggrin:
 

WORK IT

New Member
punter888, don't think you can report such practice to CASE as it is not a cheating situation. It is actually a business agreement between the credit card company and the merchant. The seller has the right not to accept your VISA card. In other word, if I lose money then I am not interested to sell.
 

Nomad

Alfrescian
Loyal
we have to live with it for choosing to use the card(s) and the convenient that it provides.
cash is still the best for smaller amount,it is very dangerous to carry a lot of cash around.
 

storm

Alfrescian
Loyal
I will use Nets whenever possible (items more than $50). If the dealer refuses to accept Nets, I would walk away.

And I wont accept paying extra for Nets transaction too.
 

sunny302

Alfrescian
Loyal
Credit cards are useful if its used in the right perpective. e.g. would be the flexibility it offers when one is traveling overseasas carrying too much cash is dangerous.

The downside as reported in the ST, is that with the "extras", one tends to overspend beyond one's means and could result in dire consequences. Hope the younger ones will take heed as the high interest rates charged by banks for these cards will balloon over time if the balance is rolled over continously:eek:
 

global25

Alfrescian
Loyal
credit is double edges like many things in life.

IMO, as long as you are unable to settle full payment at the end of your transaction month, you are living on "borrow" money, which shouldn't be encourage.

I rather pay cash/nets, at least i know i am living within my means.
 

coolfire69

Alfrescian
Loyal
credit is double edges like many things in life.

IMO, as long as you are unable to settle full payment at the end of your transaction month, you are living on "borrow" money, which shouldn't be encourage.

I rather pay cash/nets, at least i know i am living within my means.


Fully agree with you, dude...

Not only is one living on borrowed money per se... but borrowed + INTEREST as well... :(
 
H

HappyFiveStars

Guest
Totally agree with you bros.

Credit cards are good for those important urgent moments. But do clear your bills on time every month else you may end up trying to clear them for months, or worse for some of my friends years.

This is like a licensed loan shark biz for the banks and if you borrowed (it is an unsecured loan) you gotta pay else you will pay much much more.

Use cash/nets whenever possible else hold off your purchase till better times.
 

kakowi

Alfrescian
Loyal
I was informed, purchase of product by credit card, the merchant are not allow to charge additional outright to the consumer.

If we(the consumer) complain to VISA, the merchant will be barred from using the system in their premises.

that is true, and it goes for mastercard and american express too

in practice, in the past, this amount is usually absorbed as a cost of doing business...but in the recent years to the present, the cost of business has gone up (NETS surcharge, rental, utilities, etc, etc) businesses in general are reluctant to absorb further costs. Thus they may ask you to pay; or they say they accept only cash.
 

Adidas

Alfrescian
Loyal
Cash is still the Best.
i just start work only,so dun have any cards,not qualify.
but i still prefer paying by cash for small amount and use debit card for large amount. at lease we use whatever we have and not on terms.
though it is quite attractive with those sign-up freebies and items that can be exchange by points earned thru usage.


 

SammyHulk

Alfrescian
Loyal
Cash is still the Best.
i just start work only,so dun have any cards,not qualify.
but i still prefer paying by cash for small amount and use debit card for large amount. at lease we use whatever we have and not on terms.
though it is quite attractive with those sign-up freebies and items that can be exchange by points earned thru usage.

Ya, still prefer paying cash if possible. Then again, credit card bills can oso b using as a expenditures monitoring tool 4 those money conscious but of course must pay in time n in full. :wink:
 
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