Restaurant adding fee for use of credit card

sanfanciscotreat said:
Resturant owners I have known open admitted to me that they pocketed $100 cash every night.
Click to expand...
So you have taken a statistically significant sample of all the restaurants in the world? In the US? How many restaurants? Really, it's a silly and indefensible statement.
 
rjsob58 said:
More and more restaurants seem to be adding a fee if you use your credit card. I've seen this be upwards of 3%. I know that the CC companies charge a transaction fee, but it just seems wrong to be passing this on to the consumer. I don't like carrying extra cash. And it is much easier to track spending by categories when using a CC. Is anybody using their debit cards instead which usually does not incur the extra fee?
Click to expand...
We like paying in cash, and haven't used a CC at a restaurant in decades. So, actually we had no idea this was going on. Sounds inconvenient for CC users!
 
sanfanciscotreat said:
Resturant owners I have known open admitted to me that they pocketed $100 cash every night.
Click to expand...
This doesn't surprise me. I would be more surprised if there wasn't cash taken under the table.
Car-Guy said:
I expect a lot of the waiters/waitress prefer cash tips, for that reason.
Click to expand...
Maybe that's something that should be figured into the tip factor - 10% vs 15% vs 20%. Tip less with cash.
 
If I run into a fee that is higher than my cash back I will use my debit card.
 
GenXguy said:
You don't have the same protections as you do with a CC.
Click to expand...
Exactly. No debit card usage for me except ATM cash withdrawals and not many of those either, since I get paid in cash for the lessons I provide.
 
GenXguy said:
You don't have the same protections as you do with a CC.
Click to expand...
Good enough for me: "We offer you this simple guarantee: Schwab will cover losses in any of your Schwab accounts due to unauthorized activity.
 
GenXguy said:
This doesn't surprise me. I would be more surprised if there wasn't cash taken under the table.
Click to expand...
Cash under the table, food taken home expensed to the restaurant, meals eaten at the restaurant that don't get recorded, etc. There are a lot of ways for restaurant owners to game the system if they choose.
 
Sojourner said:
Well, gas stations typically have the most well-advertised differential between CC pricing and cash/debit card pricing, so usually it's better to pay with a debit card (or cash). For example, the Citgo down the road from me here in suburban metro Atlanta has a cash/debit price of $3.29/gal and a CC price of $3.34/gal. The differential is usually between 5 and 10¢/gal. However, I still pay for gas with my Silver Business AmEx, since it gives me 3% cash back on gasoline purchases, which works out to about 10¢/gal these days (and thus completely makes up for the CC pricing surcharge).
Click to expand...
Putting skimmers at gas stations where you pay at the pump is a big problem here so I will not use a debit card. I also get 3% back on my credit card.
 
Seems to me that the early pitch in enticing restaurants into accepting credit cards in the first place is that people would spend more. And I believe they do...a lot more.

As such, the restaurants are already making more money already with the CCs so why charge more? Having said that, I really don't care.

FWIW, I never, never, ever carry cash. Not even $5. We keep a draw of cash at home for tipping delivery guys but that's it. I'm not about to start lugging around $200-$300 for dinner to save $10.
 
Well, it finally happened. I was at my dermatologist today and they said 3% charge for credit cards or you can use a debit card. They had not told me in advance before I came to the office but I keep a debit card in my wallet that's linked to a checking account that has less than $500 in it for just this kind of thing. So I used that.
 
marko said:
Seems to me that the early pitch in enticing restaurants into accepting credit cards in the first place is that people would spend more. And I believe they do...a lot more.
Click to expand...
I guess that applies to some people. Not me though, the method of paying has no bearing on what I decide to eat.

But there certainly is a demographic that wouldn't go to a restaurant if they had to pay cash or debit only...they just don't have the money.
 
Music Lover said:
I guess that applies to some people. Not me though, the method of paying has no bearing on what I decide to eat.
Click to expand...
I think the idea is that if you only have $200 in your pocket, you'll likely try to spend a bit less than that. But if you had a CC, you'd be more likely to spend $250 on that extra drink or dessert. I suspect that the CC companies have data to back that up.

With prices going up as they have been, I'd hate to be given the choice between reading a menu right-to-left or carrying around $500 cash to be safe.

Quite lame to whip out a calculator while looking at the menu like some hobo, making sure you brought enough money!

Personally, I haven't carried even $5 cash on me in maybe 15 years.
 
Last edited:
Music Lover said:
I guess that applies to some people. Not me though, the method of paying has no bearing on what I decide to eat.

But there certainly is a demographic that wouldn't go to a restaurant if they had to pay cash or debit only...they just don't have the money.
Click to expand...
marko said:
Seems to me that the early pitch in enticing restaurants into accepting credit cards in the first place is that people would spend more. And I believe they do...a lot more.

As such, the restaurants are already making more money already with the CCs so why charge more? Having said that, I really don't care.

FWIW, I never, never, ever carry cash. Not even $5. We keep a draw of cash at home for tipping delivery guys but that's it. I'm not about to start lugging around $200-$300 for dinner to save $10.
Click to expand...
CC companies have done the studies, repeatedly, and they know, yes, the average customer spends more in all categories when using plastic vs. cash. Way more than the fee difference. It's a no-brainer to accept the cards in most categories.

Of course, some exceptions, mainly in the direct consumables (gas, groceries) but anything that has a discretionary angle to it? Yes, the purchase increases.

A mom-and-pop sandwich shop might not benefit from the credit card lift, but a nice sit down restaurant certainly does.
 
Aerides said:
CC companies have done the studies, repeatedly, and they know, yes, the average customer spends more in all categories when using plastic vs. cash. Way more than the fee difference. It's a no-brainer to accept the cards in most categories.

Of course, some exceptions, mainly in the direct consumables (gas, groceries) but anything that has a discretionary angle to it? Yes, the purchase increases.

A mom-and-pop sandwich shop might not benefit from the credit card lift, but a nice sit down restaurant certainly does.
Click to expand...
+1. We're actually going out tonight for a very special celebration at a notably expensive restaurant. Would I bring $300? $400 $500 $600 in cash? Nah! Amex handles that worry.
 
marko said:
I think the idea is that if you only have $200 in your pocket, you'll likely try to spend a bit less than that. But if you had a CC, you'd be more likely to spend $250 on that extra drink or dessert. I suspect that the CC companies have data to back that up.

With prices going up as they have been, I'd hate to be given the choice between reading a menu right-to-left or carrying around $500 cash to be safe. Quite lame to whip out a calculator while looking at the menu!

Personally, I haven't carried even $5 cash on me in maybe 15 years.
Click to expand...
It has been many years since I looked at the prices on the menu when ordering. And when they bring the check, I just look at the bottom line, round up to the nearest $10, double it and move the decimal point to figure the tip. If, after discussing it with the young wife on the way home, we agree that the experience did not seem worth what we just paid, we'll try someplace different next time. In general, we eat out a lot less than we did when working. Among other things, we have time to cook and cleanup at home and we're not always tired. Additionally, the young wife is a far better cook than most restaurant chefs, our ingredients are usually higher quality and we can certainly enjoy far better wine when we stay home.

As far as a credit card surcharge, it just goes to the general feeling of whether the experience was worth the price. I'm not going to go through the hassle of carrying cash just to get 3% off the bill.
 
Last edited:
But back to my point: As much as I sympathize with the difficulties of operating a restaurant, they are, generally, making a lot more money when people use CCs. As noted, according to several studies, people spend a lot more than when paying cash.

If the world suddenly went to cash in restaurants, their revenue would drop dramatically. With that in mind, while I understand why they'd charge extra for CCs or discount for cash, I think they're double counting.
 
Gumby said:
It has been many years since I looked at the prices on the menu when ordering. And when they bring the check, I just look at the bottom line, round up to the nearest $10, double it and move the decimal point.
Click to expand...
As someone who's notoriously math-challenged, that's what I do!! (Even then I get it wrong sometimes)
 
I can't help but look at the prices on the menu because they are right there with the selections. If they weren't, I would look for them.

I almost never have any cash on me, but I wouldn't spend extra just because I had a CC, either. I'm still looking out for good deals and avoiding purchasing drinks. I would still generally tip 20% for table service meals since minimum wage for tippers is still below regular minimum wage here, which is much higher than the national minimum.
 
For fine dining I use a CC. I’m taking my son and his wife to a really nice restaurant for his birthday and wouldn’t carry that much cash. But if I’m having lunch out I always have enough cash for that.
 
You must log in or register to reply here.

Similar threads

F
Credit, Debit, or Cash
2 3 4
Replies
83
Views
3K
jim584672
J
easysurfer
Use It or Lose It Letter From Credit Card
2
Replies
42
Views
2K
imnontrad
I
R
What Debit/Credit Card Do You Use When Travelling To The UK?
2 3
Replies
58
Views
2K
audreyh1
audreyh1
2017ish
After 6 years of aggressive travel: pickpocketed!
3 4 5
Replies
102
Views
11K
MichaelB
MichaelB
Redbugdave
Paying cash for your gas vs credit card...
3 4 5
Replies
107
Views
7K
Koolau
Koolau

Latest posts

Back
Top Bottom