[78-L] Convenience fees

[H D Goldman]

Hi David,

 From a small business perspective, perhaps its time for customers to  
ask why the seller should have to cover the costs of financing a  
sale.  Yes, card use is a convenience & does promote sales but at a  
real cost including the time required to authorize the sale.  Of  
course these costs can be rolled into the cost of the merchandize but  
this then penalizes buyers paying by cash/check/money order.   
Additionally, large businesses get reduced transaction rates & better  
shipping rates biasing customers away from small businesses.  Every  
time you pay cash in a restaurant you're paying for customers using  
credit cards.  When manufacturers using cards to purchase raw  
materials the costs are amplified in the cost of the retail product.

The legality of passing on such fees simply points to another aspect  
of the corrupt environment in which the financial industry operates.   
The banks & merchant account providers make a small fortune charging a  
base fee plus a variety of handling charges & if buyers really knew  
the total costs many would be sufficiently outraged to force limits on  
these thieves.

Just the rant of one small merchant, cheers,

Duane Goldman



On Mar 14, 2009, at 7:28 AM, D P Ingram wrote:

> I see one major auctioneer has started adding a "convenience fee" now
> for all card payments on their auctions at short notice. Personally
> I'm not happy paying another 4% on top (and I get stung by Customs for
> that..).. These 4%s add up when you are buying a lot.  The letter
> announcing the changes was rather "wrong" in my personal opinion: but
> that could be a style and cultural difference I accept.
>
> I thought such fees were against various merchant agreements as well
> as several U.S. state laws. ISTR was was illegal in the European Union
> as well (but that's not an issue here).
>
> I wonder if other auctioneers and outlets will now follow the trend,
> or make themselves more visible as "non followers".
>
> ¦ D P Ingram ¦ Ab Ingram Oy ¦

H D Goldman Lagniappe Chemicals Ltd.
PO Box 37066 St. Louis, MO 63141 USA
v/f 314 205 1388 thedoctor at discdoc.com