Strange merchant behavior with Discover Cards acceptance

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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cliffs
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Strange merchant behavior with Discover Cards acceptance

Postby cliffs » Fri Mar 20, 2015 7:05 pm

I have seen some weird merchant behavior with Discover cards acceptance and would like to know if some else have experienced this.

Let me start by saying that I have been in more than 15 gas stations that still don't have any Discover network signage. Where I live, you don't pay at the pump like in the states, you have to pay inside even for CC. The point is, I give my IT to the cashier (don't tell anything about being a Discover) and the transaction go smoothly. The first time I was shocked, no Discover logos but the POS processed my card anyway. Eventually my shocked state wandered off and my transactions with my card were a normal routine.

Today was different, at a gas station that I frequently go with my Discover it, my trusted it was refused. Went to pay and the cashier told me they don't accept it. Told her the why but she din't seem to know. She din't even try to swipe the card. Could it be improper training for management? I was not in a mood to argue with her, used another card and went on my way.

Later in the day, went to a cafeteria for some launch. They had all the logos clearly visible of the accepted cards. Visa, Mastercard, Discover and even Diners Club. Guess what? They din't accept my Discover and had to use another card. In this case, they don't even tried to swipe the card, same as earlier. Is like if they saw a foreign card or a Discover card for the first time ever. Again, I was not in an arguing mood and went on my way.

Still, I'm going to try again in those places next week because I really think that they are misinformed about the acceptance of the card.

So, what gives? Do anyone else has experienced this odd behavior with merchants?
Can a merchant discriminate networks like that?


notcool
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Postby notcool » Fri Mar 20, 2015 8:41 pm

I have seen some weird merchant behavior with Discover cards acceptance and would like to know if some else have experienced this.

I've had a merchant that had an American Express cards welcome sign ask me if I could use another card. I've also used my discover successfully in a few places where there was no discover accepted sign. 99.999 percent of the time I have no problem using discover or Amex but once in a rare while an issue arises.

Nixon
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Postby Nixon » Fri Mar 20, 2015 10:26 pm

notcool wrote:I have seen some weird merchant behavior with Discover cards acceptance and would like to know if some else have experienced this.

[color="Red"]I've had a merchant that had an American Express cards welcome sign ask me if I could use another card.[/color] I've also used my discover successfully in a few places where there was no discover accepted sign. 99.999 percent of the time I have no problem using discover or Amex but once in a rare while an issue arises.


Isn't this or wasn't this against merchant agreement?
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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Mar 21, 2015 1:28 am

I've never had issues using a Discover with a merchant that previously accepted it.

I walked by a parking garage a few days ago that advertised that they accepted MC/Visa/Amex...but no sign for Discover. I've never parked there, so I can't say whether they'd actually take it.

But apart from my gym membership and insurance payments, acceptance seems pretty good.

Since it went from my everyday card to a 5% card, though, I haven't used it as much this quarter. I used ShopDiscover a little, but other than that, it's just been a non-Costco-gas card recently.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

flan
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Postby flan » Sat Mar 21, 2015 9:37 am

Nixon wrote:Isn't this or wasn't this against merchant agreement?


It was. Amex lost a lawsuit about it relatively recently, and can no longer enforce that part of the contract. And it rarely stopped places that were going to do it from doing it.

whit
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Postby whit » Sat Mar 21, 2015 10:15 am

Businesses that use stripe or square accepts all four processors so I don't have a problem using it in majority of small shops in my area since they use square/stripe. Food trucks, coffee shops, taxis, etc & restaurants that are newer

Big box businesses like AMC, target..accept it as well.

So far only online shops is where I'm running into problems using discover.

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Vattené
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Postby Vattené » Mon Mar 23, 2015 9:08 pm

I don't have any answers, but I've often wondered about signage and acceptance. I live in the states where it is largely straightforward, but have had some weird experiences.

I'd speculate that a lot of businesses (or at least smaller ones where they don't have everything dictated to them from the corporation/franchisor) just don't pay too much attention to the signage they post. Maybe they get some free logos and just post them. I've seen plenty of places with multiple signage posted that have discrepancies (like a sticker here with Visa/MC only and a decal there with Visa/MC/Discover at the same merchant).

I also wonder if it is common to be physically capable of swiping any type of card (just based on the equipment being used), but refuse to accept one because of the higher costs. I don't know much about how the agreements work and the middle men that provide the equipment to process, so I could be way off base. I realize this isn't universal: I recall one place (my city when paying the utility bill - they don't add fees) where I would hand over my Amex, they try to swipe it, then come back and say "oh sorry, we don't take this." I've resorted to handing the merchant the card I want to use without asking in hopes they'll just swipe it.* Otherwise, I have come across places where they say it's not accepted and don't want to swipe it - even when I know it isn't the case. I paid a relative's bill on my Discover every month, and once I got a woman that said they didn't accept Discover even though I had used it multiple times in the past AND they had Discover acceptance posted. So maybe there is a lot of manager/owners discouraging Discover/Amex use just because of the fees?

I swear Discover used to have a page where you could report a merchant that doesn't take the card so they could market to them. Does anyone know if they still do this and how to get there on the website?

*If it is a smaller/locally owned merchant I'll gladly to use something else. There are a few restuarants I frequent that don't take Amex, for example, and if it saves them a little in fees I am happy to use Discover even if they are technically able to process the card. If a place decides not to take a card that is well within their rights and I have no problem with it, but the signage is a mess at a ton of places.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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