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Thread: Credit card surcharge

  1. #1
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    Default Credit card surcharge

    Will this affect the way that you spend money?

    http://www.nzherald.co.nz/business/n...ectid=10619670

  2. #2
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    Probably - I will always weigh up the surcharge and use EFTPOS / Cash instead of credit if it outwieghs the benefits of using the credit card (airpoints and reduced interest payments on my revolving credit mortgage).

    I do, however, agree with surcharges provided the businesses aren't making profits out of them - it costs them money and so they should be able to pass those costs on to people who use credit cards. Also having the cost visible in this way is a great way of getting the credit card companies to reduce their charges!

  3. #3
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    Personally, I think this is a cheeky move cos retailers already incorporate overheads in the cost of goods and services.

    Will you avoid retailers who charge more for using credit cards?

    I'm surprised more people haven't commented, or is nobody really bothered and just accepting that it is a sign of the times?

  4. #4
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    I don't have a credit card so it doesn't directly affect me at the moment. However I think that the surcharge charged should be regulated (and obviously well displayed at POS). I think in some ways it will encourage people not to rely on credit so much which can only be a good thing. Some people manage their credit card usage well but there are a lot around my age that don't at all!

  5. #5
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    As above, it's fine if it's fair. So a fixed price or a %age that reflects the additional cost that the credit card company charges over and above the debit card prcessing is fair. What's not fair is the ryanair way of implementing surcharges that are nothing but a fixed price.

    I know Amex used to charge silly amounts to the retailers, so a few years ago then few places in the UK accepted Amex. Not sure if they've dropped there prices in line with other cards as there are a few more places accepting it now (including tescos).

  6. #6
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    I use a credit card for pretty much all normal spending (inc fuel, supermarket etc.) and settle in full when it's due. It would effect me, I'd look to avoid outlets charged extra for credit card spending and take my custom elsewhere.

  7. #7
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    Default It's been done before

    I just laugh. Really do retailers think it's wise to turn customers away? Consider how large the tourism retail industry is in NZ. So many tourists rely on the plastic for making all their purchases - it's a hassle to exchange currency. If any retail outlet is that hungry to pass the 3% cost to the customer, then obviously their profit line isn't high enough to be in business.

    Those serious in business should consider the opposite. They should be offering 3% discount for cash payment. When travelling throughout the US, many petro stations offer the 3% cash discount (since you pay for petro 1st before you fill up). Talk about thinking backwards in NZ.

  8. #8
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    Quote Originally Posted by Super_BQ View Post
    Those serious in business should consider the opposite. They should be offering 3% discount for cash payment. When travelling throughout the US, many petro stations offer the 3% cash discount (since you pay for petro 1st before you fill up). Talk about thinking backwards in NZ.
    That is what's happening in Singapore as well. Some retailers particularly small businesses gave a percentage discount for cash payment. This could lead to some pretty interesting sights though. People would take stacks of cash notes to pay for purchases of thousands of dollars (it helps that cash denominations in Singapore run in the thousands). There must be a lot of people doing this, because banks eventually charge a percentage "cash handling fee" when you deposit and withdraw money in cash over the bank counter... you can't win either way.

    Physical cash handling seems to be a thing of the past here in NZ though. When I bought my motorbike I handed over $5,000 worth of $20 notes (hey, that's what the ATM dispensed out!). The seller was not amused.

  9. #9
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    Yes, it definately will change the way I spend my money. I will not pay that surcharge, and will take my business elsewhere if my 'regular' shops start charging me or start paying cash. I don't see why I have to pay the retailers costs of using a credit card as well as the bank charges I pay for being allowed to use the card....

  10. #10
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    Quote Originally Posted by Nienke View Post
    Yes, it definately will change the way I spend my money. I will not pay that surcharge, and will take my business elsewhere if my 'regular' shops start charging me or start paying cash. I don't see why I have to pay the retailers costs of using a credit card as well as the bank charges I pay for being allowed to use the card....
    So instead everybody has to pay the retailer's costs of using a credit card - rather than just the people who use credit cards?

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