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Restaurants charging 4% for using credit card
Posted on 3/19/22 at 3:17 pm
Posted on 3/19/22 at 3:17 pm
Went to a local restaurant to eat lunch. Glanced when I put my cc down. Noticed the total was in the 60’s. Didn’t pay that much attention to it. When she brought me back the cc slip to sign, when I went to leave the tip it was in the 70’s. Asked her and she showed me in small print a 4% charge for all non-cash payments. When did this become a thing? I go out to eat all the time, rarely do I look closely at the bill. Only reason I noticed it this time is the first number changed.
40
Posted on 3/19/22 at 3:19 pm to lsujag
I’ve never heard of this before. Seems like a shitty thing to do without having something on the menu warning you in advance.
Posted on 3/19/22 at 3:19 pm to lsujag
It has been a thing for a while now.
Posted on 3/19/22 at 3:20 pm to lsujag
I seen it happening recently as well. Cash is king again.
Posted on 3/19/22 at 3:22 pm to lsujag
quote:
When did this become a thing?
I’m pretty sure it was a Tuesday.
Posted on 3/19/22 at 3:23 pm to lsujag
Credit card processing companies charge a fee per transaction. Most restaurants/bars account for this in their menu prices to where you don't even know that fee has been added. This is also why some bars have a credit card minimum tab amount. Stupid and lazy of the restaurant to even show their customers this. They should've just raised the price of a few of their most popular sellers by a dollar or two here and there and kept the cash/credit prices the same.
Posted on 3/19/22 at 3:23 pm to lsujag
Colorado, Connecticut, Kansas, Maine and Massachusetts have all passes legislation banning the practice of charging convenience fees.
Posted on 3/19/22 at 3:23 pm to lsujag
Thanks for the notice….looks like the tip gets cut by 5% when using a credit card from now on.
Posted on 3/19/22 at 3:23 pm to lsujag
Krystal is the only fast food restaurant I know that does it,
One small family owned restaurant near me does it. Good food. Great service and reasonable prices. The fees charged by card companies were eating away at their bottom line. I don't mind. I can always take cash with me, but I never do.
One small family owned restaurant near me does it. Good food. Great service and reasonable prices. The fees charged by card companies were eating away at their bottom line. I don't mind. I can always take cash with me, but I never do.
Posted on 3/19/22 at 3:26 pm to Spankum
My parents always tip in cash
No clue how or why they would know this but said the fee gets taken out the servers tip if it’s done on a card
No one in our family has ever worked in a restaurant so not sure who told them that
No clue how or why they would know this but said the fee gets taken out the servers tip if it’s done on a card
No one in our family has ever worked in a restaurant so not sure who told them that
Posted on 3/19/22 at 3:28 pm to TigerintheNO
It used to be a violation of the agreement between the merchants and the credit card companies can you charge a percentage for using the credit card. A cash discount, however was it one time acceptable.
Posted on 3/19/22 at 3:29 pm to lsujag
They probably should charge a fee since they pay one. I know some gas stations charge less when you pay in cash. Somebody has to eat that cost.
Posted on 3/19/22 at 3:29 pm to lsujag
Not sure why a restaurant would do it but… LA law states the business can pass on the credit card processor fee to the customer as long as
1. It’s a separate line item on the receipt
2. Fee does not exceed actual surcharge.
ETA. Each state sets their own laws surrounding this. But never pay more than the percentage. 4% is usually what it’s around. Had someone try to charge me 20% for cc transaction. Didn’t but their product and told them it was illegal.
1. It’s a separate line item on the receipt
2. Fee does not exceed actual surcharge.
ETA. Each state sets their own laws surrounding this. But never pay more than the percentage. 4% is usually what it’s around. Had someone try to charge me 20% for cc transaction. Didn’t but their product and told them it was illegal.
This post was edited on 3/19/22 at 3:32 pm
Posted on 3/19/22 at 3:31 pm to lsujag
It's been a thing for at least a decade now. National chains really don't do it because they can absorb the processing fees or they add it into their price. It's really enforced now because a large percentage of people use their cards for everything. Source: Used to work in sales for a national merchant processor.
Posted on 3/19/22 at 3:32 pm to LSUJML
quote:
said the fee gets taken out the servers tip if it’s done on a card
Never heard or seen that anywhere. Pretty sure it would be unlawful.
Edited to add that I’m apparently uniformed based on the replies below. Still doesn’t seem right to me but I’ve been out of the game for a good while.
This post was edited on 3/20/22 at 1:17 pm
Posted on 3/19/22 at 3:34 pm to lsujag
For a very long time it was illegal in Texas —and still may be—to explicitly charge a (let’s say a 4%) credit card transaction fee, so companies started offering a 4% discount if you paid in cash.
It was just a simple math solution (loophole) for them to avoid explicitly stating that they were up charging you for their credit card transaction merchant fee.
I frequently see cash discounts offered at small restaurants. Presumably this is to play it safe.
It was just a simple math solution (loophole) for them to avoid explicitly stating that they were up charging you for their credit card transaction merchant fee.
I frequently see cash discounts offered at small restaurants. Presumably this is to play it safe.
This post was edited on 3/19/22 at 3:37 pm
Posted on 3/19/22 at 3:34 pm to lsujag
Sick of gas stations doing it.
Posted on 3/19/22 at 3:34 pm to dirtsandwich
That’s what I figured but wasn’t going to argue with them
If they want to buy my dinner & tip in cash I’ll gladly keep my mouth shut
If they want to buy my dinner & tip in cash I’ll gladly keep my mouth shut
Posted on 3/19/22 at 3:34 pm to DandA
The problem is they have been raising their menu prices due to inflation. This is one thing they’ve enacted to try to keep menu prices closer to normal
Posted on 3/19/22 at 3:35 pm to dirtsandwich
quote:
said the fee gets taken out the servers tip if it’s done on a card
Never heard or seen that anywhere. Pretty sure it would be unlawful.
It's very common in the New Orleans area. Has been for years.
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