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Author: HelloWorld Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308552  
Subject: Re: Surcharge for Using Credit Card?? Date: 5/14/1998 11:36 AM
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>> Why do I deserve the lower price? Because I am the customer... <<

Bingo! Couldn't've said it better myself! Merchants don't set the price, the market sets the price. That's why _most_ merchants won't add a surcharge - it makes them less competitive. Whether or not we "deserve" the cash price is moot - the point is we are free to choose who we do business with.

That said, I actually wish I _did_ get a discount for paying cash. PSUEngineerFool accuratley writes "taking CC payments is the cost to companies of doing business...", but, when I pay by cash and don't get a discount, I'm helping the merchant absorb the cost of letting others use the convenience of CCs. Why should I pay for a service I'm not using? Because that's just the way it is. As long as America continues its love affair with the credit card, consumers will demand the ability to use it without paying surcharges.

A colleague of mine from India says that in India credit card surcharges of 1-2% are commonplace. The difference being that CC use isn't nearly as prevalent. Merchants can keep their overall prices lower by charging the rare CC user for the convenience. I guess it's a case of two markets evolving differently.

--Mike
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