Two places in the last couple weeks, the roofer and a charity. said they wanted a 3% convenience fee if I used a credit or debit card instead of a check or cash.
Yes, I know they pay this, but I don't remember being asked for it before. Has something changed at the credit card banks that makes them want this fee now?
It is not the bank, it is the merchant. Some states had laws making this illegal (at the behest of the banks) but those laws may have been repealed. They may also just be ignoring the law or exploiting a loophole by what they call the fee.
I have UGI gas and UGI electric. Gas charges 3 bucks, not percent, elec does not. Elec take from bank account and gas gets a written check with a forever stamp.
It sure takes some balls for a charity to ask for it.
Utilities here in NJ do the same, even if you use a debit card. But you can enter you're checking account info, do it that way online and there is no fee.
You'll have to ask the roofer and the charity.
Cindy Hamilton
I think that at one time the credit card compaines would not allow a store to charge any difference than a cash price for using the cards. The government struck that down not too many years ago.
So some places started adding about 2 to 3 % if you used a credit card because that is what it cost the store. Debit cards do not charge the store as far as I know.
On the larger purchases I often ask if they give a discount for cash or check instead of a credit card. If they do, I pay by check. If not I use my credit card because I get back a percentage from the card company.
There is a gas station that charges extra for credit cards, but not debit cards. I quit using that station when they started charging extra. I do no use debit cards, but cash or check if I have to. Most everything I buy is by credit cards becasue of the cash back. I do pay them off every month.Over the years I probably have not paid over $ 50 in extra charges on the credit cards.
I know the county taxes and some other governmnet agencies want to charge a convience fee if you pay by a credit card here in NC.
If you owe the feds taxes and file online paying with your credit card they also charge about a 3% fee.
Since merchants pay when you use your credit card I have bargained for a cash discount.
Also local hardware store gives a 5% senior discount and I always pay with cash to help them in return for the discount.
"While it's legal under federal law to add a surcharge to credit card transactions, some states prohibit the practice. Any surcharges are illegal in 10 of the 50 states — California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
A surcharge over 4% of the purchase price is illegal . ... Whether you are paying a convenience fee or surcharge, it's only legal if the payee alerts you to the fee."
As president of local college Foundation, I'm in sympathy with the nonprofit if they're a smaller one...small online donations can end up actually costing more than the donation and the need to still document everything received no matter how small is expensive, too.
It's a conundrum on the other end despite what may be good intention of the donor. We don't charge (actually, we're in one of the 10 above so couldn't but still wouldn't as policy even if could as we can afford to absorb it---a much smaller on-a-shoestring-budget kinda operation, "not so much".
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Charity was probably the wrong word. It's a non-profit that is hosting a dinner, so I'd be paying for a dinner that I eat.
In these two cases, both offered that I could pay by "cash, check or credit card". I asked the roofer about debit card and I guess they took it but it was going to cost 3% also.
They also offered to send someone over to pick up the check for the deposit. She said there was probably someone in the area, then said he'd be there in less than a half hour, and he was here in under 10 minutes.
My friend thinks that's suspicious or it means they deal with too many fly-by-night customers, that they go to that much trouble to get their money. I figure they've had seemingly normal people screw up their planning by getting on their calendar and not paying by the time they're supposed to start.
Surcharge, that's the word. I used that to look myself but didn't find much.
One hit from last September says it's 11 states now, but the list was at another url.
I figured it was like that. I don't give tiny contributions for that reason.
Thanks and thanks all.
Well, if it's a qualified nonprofit, it has a mission that provides it that tax status so "charity" isn't too far out of the realm...altho depending upon which one can change just what the mission is drastically, of course.
A hosted dinner would be a fundraising event almost certainly, and so generally the cost of the ticket that includes a meal or other services will be something above the expense the nonprofit incurs, the remainder is a donation. Only the difference between the set value for the service and the end price paid is deductible as a charitable contribution by the purchaser/donor.
The surcharge would be includeable in the total paid by the donor if paid; the expense to the nonprofit would simply be an additional cost of putting on the event to them and so reduces their net raised "for purpose".
The Foundation of which I spoke downstream has an annual "party auction" fundraiser for same purpose...we ended up splitting off the meal from the entrance price entirely. Can lower ticket prices and still make the same or more per ticket from that entry fee portion of revenue. If the attendee wants the meal, they pay separately for it to the vendor.
Since we're associated with local college, we have sweetheart deal with their food service vendor and they can put out the food for a bargain price.
After getting the quote from the roofer, my first question is "how much if I pay cash?" Often it is 10% or 20% less.
I just had some lawn work done. One company wanted $150. Next door was having his done and I asked the guys how much. They asked it I wanted it through the company. Said I have cash. It was $80.
I guess that is why they call it a convenience fee and not a credit card fee here in Florida.
These days merchants can clear a check while you are standing there and hand it back to you if they want to. Some keep them for their own bookkeeping but I am not sure they ever make it to the bank. They may just send an image. If they run it through a MICR reader, your check has cleared.
From what I can tell, it's still not legal in FL, whatever they call it (other than, of course, if they're a government agency or public utility).
Seems as though they can pretty-much routinely get away with doing so and not be prosecuted unless customers complain to authorities in that there's no way to prevent it.
Be interesting to point out to the merchant at the checkout point it's illegal and see what did... :)
We're so used to being same price either here that never think of it altho a (very) few service stations will offer cash discount at the pump, most don't and generally are at or very close to same price in order to remain competitive. That has had the effect of having reduced the number of stations noticeably and eliminating the independents entirely, however, as margins are just too slim any more for them to survive. "There is no free lunch" and "The law of unintended consequences" in play.
You can do auto renewals on line in Montana but there is a surcharge for using a credit card. I pay by check but there's a $1 charge for mailing the sticker and I think $3 is they mail plates. That doesn't happen often. iirc it's every 10 years that they change the plate design and send new ones.
It's still a charity event, sounds arrogant to me and would piss me off. So what if they get a small percentage less in donation money? They should be happy to get the money. $100 or $97 and they're gonna complain?
I'd say it would largely depend on how it was done...if it's an online thing and a checkbox of optional to defray the cost of the transaction would be ok I'd say altho I don't really know if our Foundation would choose to do that much, even, since we don't have the option under state law.
OTOH, if it's "in your face" I'd agree from donor perspective. OTOH, from the nonprofit pov, 3% more to bottom line is 3% more to bottom line... :)
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