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Author: KoshN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308363  
Subject: Re: Surcharge for Using Credit Card?? Date: 5/14/1998 1:04 PM
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<< I see no difference in a surcharge and separate cash and credit prices. In both cases, a company is trying to pass the cost of credit to the customers.>>

Well, most people (and the law in many areas) object if a merchant tells everyone that the price of something is $19.95 and then charges $20.95 when someone tries to buy it, regardless of the reason. Generally, no one objects if they are charged a price that is LOWER than advertised, no matter what the discount is for.

<< What I think companies with separate cash and credit companies are doing is violating the spirit of its agreement with Visa and Mastercard to not establish different prices dependent on payment method. Taking CC payments is the cost to companies of doing business into order to create more business by allowing customers a convenient method of payment.>>

So if your grocery store started stocking gourmet foods, well, thats just a cost of doing business (for the convenience of those who will no longer have to go to another store) and there's no reason to charge you more for putting some caviar into your bag than a package of hamburger? If it costs significantly more to process a credit card transaction (and the difference varies from store to store), why penalize those customers who are willing to forego the convenience?

<< Why do I deserve the lower price? Because I am the customer and unless the business is a monopoly I can take my business elsewhere. A sale at lower profit is better than no sale.>>

A good reason why a merchant may want to give you the lower price (at the expense of those paying with cash). Not a reason why you deserve it.
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