hellyer 216 Posted October 31, 2012 Share Posted October 31, 2012 Does it seem to you that more and more merchants are charging you, the customer for paying by credit card? I think the airlines were one of the first to apply it but the practice is spreading fast. Here in Oz we have a People's Consumer Watchdog by the name of 'Choice". Every year they give out the SHONKY Awards to the biggest rip-off merchants. One of the Shonky's this year went to a company called Cabcharge. Here is an excerpt from the awards - I just love the journalists wording The Shonky for Taxiing down the runaway charges goes to... Cabcharge So you book a taxi, take the scenic route down to Shonkytown and the fare comes to $42.10, including booking fee, flagfall, applicable road tolls, night loading and GST. Unfortunately, the driver hasn't enough change for your $50 note, so rather than give him the $7.90 tip he was probably hoping for, you hand over your credit card – whereupon you're hit with an additional 10% credit card surcharge. This makes a mockery of the typical 1-3% credit card surcharge we seem to be hit with elsewhere these days. According to Cabcharge, the company responsible for the payment processing infrastructure (card-sticky-inny-machines) in cabs, it's actually not a 'surcharge'. Rather, Cabcharge says, it "applies fees on financial services rather than as a surcharge on the underlying transaction." Right, so a fee on a financial service. Not a surcharge. Uh, sorry, but if it waddles and quacks like a lame euphemism and charges like a wounded bull, then it's a 10% credit card surcharge. But the sting in the tail is the financial sting at the tail end of the transaction – the GST that's charged for non-Cabcharge credit cards on top of the surcharge. Fee on financial service, that is. So you're actually paying 11%. We're not the only ones who think it's excessive, and from January 1 next year, new surcharging rules come into play courtesy of the Reserve Bank, whereby surcharges have to reflect the true cost of providing the service. Cabcharge is firmly in the sights of hunters seeking to reduce the waddling, quacking surcharge to a more reasonable level, such as the 5% recommended in the recent taxi inquiry in Victoria. Naturally, Cabcharge reckons it won't be affected by the new rules. Because it's not a surcharge. Quack. Do you have you any examples of credit card rip-offs? Link to post Share on other sites
box of frogs 0 Posted October 31, 2012 Share Posted October 31, 2012 Lets hope it doesn't catch on. Link to post Share on other sites
pie-eater 207 Posted November 1, 2012 Share Posted November 1, 2012 I haven't noticed this snowjunky........ Link to post Share on other sites
hellyer 216 Posted November 2, 2012 Author Share Posted November 2, 2012 Here in Oz, at least 50% of business invoices hit you with a fee for payng by credit card, particularly on Amex cards Link to post Share on other sites
NoFakie 45 Posted November 2, 2012 Share Posted November 2, 2012 It can cost small businesses 3-4% or so to accept credit cards. The rate depends on the total volume, so the rate Amazon or Rakuten pays will be much lower. Paypal is the same. It's why the shops that are cheapest on kakaku usually won't accept cc. You have to do a bank transfer or pay cash on delivery, both with you paying the fee. At our local garage too, petrol is cheaper if you pay cash instead of ordinary cc. The garage's own cc is cheapest. Link to post Share on other sites
big-will 7 Posted November 3, 2012 Share Posted November 3, 2012 Understand that, but 10%? Link to post Share on other sites
JA2340 16 Posted November 3, 2012 Share Posted November 3, 2012 Cabcharge is a proprietary charge card for use in taxis ONLY. They can charge as they please, because most of their "clients" are corporate and government. OTOH, VISA, Mastercard and AMEX have "mum & dad" clients in small businesses who have to recoup the charges that the card issuers impose on their business. As I understand it, AMEX charges a business around 5% of the transaction value to the business. It is a valid cost of doing business, and realistically should be passed on to the customer. Charging more is not conscionable, but charging less is a recipe for going broke slowly. Other card issuers charge less, but the point is the same! Link to post Share on other sites
NoFakie 45 Posted November 4, 2012 Share Posted November 4, 2012 Paying by cc adds a middleman, and those points you get for using one ultimately aren't free. It leaves us with a kind of funny situation where big businesses, not just some dodgy plumber, want you to pay by cash. Link to post Share on other sites
cal 6 Posted November 5, 2012 Share Posted November 5, 2012 Surely people are just not happy about being slapped with an excessive 'extra' charge way beyond that of the cost to the company. ? Link to post Share on other sites
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