Restaurant adding fee for use of credit card

[Music Lover]

We mostly stopped going to restaurants a few years ago when we had decided that prices were getting out of line. We only go now if it's a social gathering and almost never on our own.

Credit card fees are an annoyance but it's lower on the list than a few other things.

 

[Gumby]

And that's how markets work. If the price is too high, people won't buy. Then the price drops until they do.

 

[Car-Guy]

This is all getting a bit out of hand in terms of not exposing the price when they give you the price. Same thing for resort fees, etc.

At a certain point it becomes fraudulent to say something is the price when there are a litany of “optional” after purchase decision fees and hurdles laid out.

Same thing for "free shipping claims". Trust me the cost of shipping has already been included. If they wanted to be 100% truthful, they'd say something like, "shipping included".

 

[Badger]

If they were baked into the price then the people who paid with cash or debit have been getting ripped off for years.

Exactly!!! Another reason among many others why I rarely eat at a restaurant.

 

[aja8888]

Well, somebody is eating out at restaurants because they are all full around here every day of the week!

 

[Texas Proud]

Press 1 to accept your 3% credit card fee.

Press 2 to approve the 25% tip we calculated. Or press 3 different keys to get rid of it.

This is all getting a bit out of hand in terms of not exposing the price when they give you the price. Same thing for resort fees, etc.

At a certain point it becomes fraudulent to say something is the price when there are a litany of “optional” after purchase decision fees and hurdles laid out.

Yes, you can pull out cash, press no, etc but when it becomes systemic that declines as a practical option.

IMO the problem is that it is not optional... a tip is optional... the CC fee is not...

Also, the fees for insurance or whatever else they call it that some put on bills is also not... resort fees... not...

And it is not the amount that is a problem... I can afford the fee... I just do not like it being sneaky.... charge the full amount and say 'you can get a 3% discount if you pay cash' and I am good to go... I will still pay with CC but not feel like I was lied too..

 

[Car-Guy]

OTOH, no matter if a CC surcharge is included or an extra line item in your bill, so is the cost of their base product, rent, utilities, labor/employee cost, insurance, taxes, etc. At the end of the day, they have to make a profit or go out of business.

 

[youbet]

We pay cash at restaurants most of the time. It takes less time, especially if you're with a group where each couple has their own check and are using CC's. And there is zero chance of surprise fees or changes to the tip. Usually we've said goodbyes and wandered towards our car by the time the other folks have received their receipts to calculate the tip and sign.

 

[jollystomper]

I do not get hung up over this. Not a windmill I feel worth tilting against , as long as they are up front about it. For example, I see it analogous to the "we will automatically charge a gratuity of X% for parties of Y size or more" process - I do not automatically choose not to eat at a restaurant if we have a large party because of that policy.

 

[Chuckanut]

As someone who once managed a retail store for a large well-know chain, handling cash is a big deal. It requires two people to count it, when the person with a gun comes in they go for the cash (not the credit card payments), and it tends to disappear (credit cards don't, they are "captured" by the credit card terminal). As for checks, they have bad check losses (which are greater as a percentage than disputed credit card sales). So I will have to disagree with you.

As for small businesses, I won't paint them all with the same brush, but I am sure that some like the way that cash can be left off of their taxable sales.

+1

When I worked in retail we had periodic cash pickups just in case a register was robbed (by employees or outsiders). It required two people to count the cash and sifpgn off on the amount removed, a store security person to pick it up, and, of course, storage in a secure area of the store. Handling cash is not cheap.

The there were the employees who tapped the till to enhance their take home pay.

 

[Zathras]

I'm not sure why people are so steamed up about this. Credit card fees are a cost, so the only question is "who pays?" It seems logical to me that the person who benefits from using the card should be the one who pays. Same as believing that the person who wants french fries should be the one who pays for them.

From a numbers angle, that "tiny" credit card fee could easily take 25% or more of a small shop's net profit.

Another angle: My "wine guy" is sole owner and clerk at his well-curated shop. I like him and want to see him do well, so I always write him checks instead of using a card. The fees he pays (accommodating most customers) have a significant impact on his net.

+1
I have no trouble with restaurants, or any other merchant, charging less for cash.
As said above, credit card fees are a business cost. I find it more equitable that the credit card fees should be paid by the CC users, not everyone.

 

[SecondAttempt]

Another angle: My "wine guy" is sole owner and clerk at his well-curated shop. I like him and want to see him do well, so I always write him checks instead of using a card. The fees he pays (accommodating most customers) have a significant impact on his net.

I agree with most of what has been said. I am gradually changing my behavior based on "personal policies." Quoting your post because the local angle resonates.

- I don't mind paying 3-ish % for a local restaurant but I take it out of the tip on the rare occasion I go to chains. I used to run a small business that took cards and was shocked that sometimes when people used a premium card the fee was 4.5% plus a couple of add-ins. As someone who spends mostly on a premium card I don't mind a little cost-sharing.

- I only tip for takeout at a few local restaurants because I want them to succeed. I'm paying for my own future convenience in my mind.

- I do not patronize restaurants that charge a mandatory tip or service charge even though it is usually less than my normal tip.

 

[SecondAttempt]

+1
I have no trouble with restaurants, or any other merchant, charging less for cash.
As said above, credit card fees are a business cost. I find it more equitable that the credit card fees should be paid by the CC users, not everyone.

There is a term for the cost of collecting revenue but I don't recall what it is. Credit cards are actually pretty cheap. Checks, cash, mailed payments, etc. all have costs.

 

[Flyfish1]

I haven't seen that yet. But, an easy way to call them out is to post a negative review on Yelp or Google or Open Table.

 

[ShokWaveRider]

I haven't seen that yet. But, an easy way to call them out is to post a negative review on Yelp or Google or Open Table.

Who really looks at those? I do not before I go to a restaurant, do others here look at the reviews before going to a local restaurant? It would be interesting to know.

 

[Car-Guy]

Who really looks at those? I do not before I go to a restaurant, do others here look at the reviews before going to a local restaurant? It would be interesting to know.

Not me nor anyone I know...

 

[folivier]

Met a few high school friends for lunch yesterday. No charge for using my card but when I looked at the bill it was higher than I expected. There were 5 of us and they charged a 20% tip included in the total. And below the total there was a section for adding an additional tip. Granted the server was good and would have gotten a 20%+ tip from me but I didn't like the fact that 20% was included. Nope won't be going back there even though the food was good.

 

[Music Lover]

A 20% mandatory tip is far worse than a 3% CC service charge.

 

[tulak]

A minimum tip is usually included by default for larger groups. Definitely something to be aware of to avoid double-tipping.

In my area it’s usually 6 or more and the tip (service charge) amount is written on the menu.

I wouldn’t feel obligated to add anything more, nor do I think it’s expected.

 

[Music Lover]

A minimum tip is usually included by default for larger groups. Definitely something to be aware of to avoid double-tipping.

In my area it’s usually 6 or more and the tip (service charge) amount is written on the menu.

I wouldn’t feel obligated to add anything more, nor do I think it’s expected.

It's not a tip if it's mandatory.

 

[2017ish]

Who really looks at those {online reviews for restaurants}? I do not before I go to a restaurant, do others here look at the reviews before going to a local restaurant? It would be interesting to know.

We do, both locally for new restaurants and when traveling. Sometimes we look deeply into the reviews, as on our recent NZ trip when looking for fine dining in small towns. And we try to leave comprehensive reviews ourselves if the restaurant has not been the subject of many reviews.

 

[2017ish]

We haven't seen credit card surcharges much in the US. But, in NZ, I it was VERY unusual not to see them. I hesitate to use the word "all," but it sure seemed like we always had them at restaurants during our recent trip. (about 60 restaurants in total.)

It didn't trouble us much, as we were running up DW's new Southwest card to have a companion pass for '24 and '25.

 

[ZenB]

Who really looks at those? I do not before I go to a restaurant, do others here look at the reviews before going to a local restaurant? It would be interesting to know.

Absolutely! I always look at reviews as well as the menu in advance.

 

[GenXguy]

Absolutely! I always look at reviews as well as the menu in advance.

I sometimes look at reviews and the menu in advance.

 

[aja8888]

I sometimes look at reviews and the menu in advance.

Mee too!