Bksuper wrote:against visa merchant contracts since they accept visa, since I've been at my school (August) and probably longer. They seem to prefer to charge a surcharge and face the consequences if caught. And this is in California. My official school book store, run by a big corporation (Barnes & Noble) ID'ed me to use my credit card to purchase textbooks and the clerk admitted it was because it was a Visa Signature and that cost them more. Merchant contracts seem to mean nothing to merchants, gov. restrictions or not.
@Doing Homework: I see your point with the widget example; credit cards and especially rewards credit cards are reducing consumer and producer surplus.
djrez4 wrote: Any merchant who adds a surcharge now is taking advantage of you.
Round those up to the nearest dollar, enjoy a bit more revenue, and take my damn Amex.
djrez4 wrote: Suck it up and participate in the economy.
Bksuper wrote:I thought the OP said the new rules making it now legal excepted California? I'm located in California, the restaurants still charge surcharges for using credit for purchases <$5, have as long as I remember, and the ID'ing incident happened when it was still against the visa contract and was by their own admission because I used a signature card not because of risk of fraud. I'm not saying the rules are or aren't justified, fair to merchants, fair to consumers, etc, Im saying that whether or not they are there, the merchants seem to just do what they want for their business and risk paying a fine if caught.
djrez4 wrote:It's your choice as a consumer - carry a brick of $20 bills around wherever you go or pay a surcharge for having it on a piece of plastic.
Let's take a rather normal example - Say I go buy a new TV. I go to the store, pick out the model I like that has the features I want. Say it costs $1000. So, what do I do? Do I go to the bank beforehand and take cash out in anticipation of the purchase? What if I didn't get enough? Do I ask them to hold the TV and then go to the bank, now that I know the price? What if I get mugged? What if $100 falls out of my pocket? A credit card lets me avoid all of those problems. If I lose $100 cash, it's gone. If I drop my card, I call up and lose nothing. It also give me some piece of mind by extending the warranty and possibly providing price protection if the TV goes on sale later that month. The merchant accounts for all of his expenses in the sale price of the TV. I get my credit card rewards. Everyone's happy.
But, even if you go cash only, you can't just opt out of the system. If you choose to pay with cash, you're still being charged the merchant's cost of the item, plus whatever he chooses to add as a margin. If you're not willing to pay the merchant his margin so he can keep his doors open, what are you doing to do? Buy a cow, feed it, milk it, and churn your own butter? Grow enough cotton in your back yard that you can spin the fibers into thread, weave some fabric, and sew yourself a shirt? Mine bauxite, process the ore, and smelt it down into aluminum that you can roll into sheets of foil? Are you really going to go all Unabomber because a merchant adds a surcharge? Suck it up and participate in the economy. Or don't. We'll see you on the news, then.