[78-L] Convenience fees

[David Lennick]

I told the seller that I had no basic problem with the extra charge, for a 
number of reasons..and note that it doesn't apply to orders under $100. I 
receive payments via Paypal on occasion and get nicely dinged, and I know 
American Express charges exorbitant fees to the seller. As for the banks..you 
want to hear about gouging? Much of my income (what's left of it) comes from 
overseas companies (what's left of them) and when they pay me by wire transfer, 
I lose $35 between there and here, no matter the size of the payment. I have a 
US$ account at my bank in Toronto and last week I deposited some US cash and I 
was charged for THAT privilege! This may explain why Canada's banking system is 
considered excellent these days. I shoulda been a whoremonger, I think.

dl

H D Goldman wrote:
> 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
> 
> 
> 
>