No, I don't get annoyed at credit card up-charges. Credit cards are nothing more than a convenience for the Buyer. So, the buyer should have to pay the fee. The Buyer has the option to use other methods of payment. Regardless, the Buyer ALWAYS pays credit card charges, whether its stated or built into the price. At least on gun auctions, you have the choice of not getting charged for something you don't use.
Does anyone else get annoyed with credit card fees on auctions?
- Thread starter jasmith85
- Start date
It does tend to be a waste. And, I will have some fun with people who use the reserve in a ridiculous manner. There was one gun that had a reserve and a starting bid of $1 So, I bid my max the first go around. Then when it was re-listed, I bid a few dollars less than my previous max; then lower; then lower.... I was the only bidder on this particular gun. I see that the owner probably saw what I was doing and simply delisted it.
Oh, yes, I was prepared to buy the gun for what I bid - I've never welched on an auction I've won.
Mike Irwin
Staff
"Credit cards are nothing more than a convenience for the Buyer."
They're also a big convenience for the vendor and can be a security asset in that you're not handling large amounts of cash.
They're also a big convenience for the vendor and can be a security asset in that you're not handling large amounts of cash.
I only bid on auctions that don't charge the extra 3% and pass by the others. I don't get upset about it, I just move on.
And, I'll probably get called a liar here for saying this (I've been called a liar for saying this before), but at the shop I work at we are only charged about 1.5% by the credit card companies. How do I know? Because the owner told me. We give a 2% cash discount if customers want to run to the bank.
And, I'll probably get called a liar here for saying this (I've been called a liar for saying this before), but at the shop I work at we are only charged about 1.5% by the credit card companies. How do I know? Because the owner told me. We give a 2% cash discount if customers want to run to the bank.
Evan Thomas
Inactive
The problem is that in a competitive marketplace, they can't charge the sellers whatever they want, because the sellers will go somewhere else where they get a better deal. To run a successful auction, you have to have stuff that people want, which gives sellers some negotiating power. Some auction houses even have "sliding scales" in which they give much better commission rates (as much as 2% as opposed to 10%) to sellers with exceptional items and/or a lot of volume. They have to make money somewhere, and the buyers are who's left.jasmith85 said:
johnwilliamson062
Moderator
As previously stated, the credit card companies lost on this one and their TOS was overturned in court. The "discount assumed" merchants just haven't caught up with the times.
3% is cheap for all the convenience. I recently bought a gun from buds. It wasn't super expensive, but when I thought of my option to go to USPS, get a MO, mail it to them, wait for it to be processed, worry about all the ways it could get lost along the way, I happily entered my CC number, payed the surcharge and went about my business.
If I was purchasing a $1000 or even $500 gun I might change my mind. For less than $15 it costs me at a $500 gun I'm not even thinking about it. FOr starters I can work an extra hour and make more than that and it would take me at least an hour to drive to the PO, wait in line, buy the thing(with a fee there), pay postage, etc. Then I have to wait an extra coupl of days to get it.
The vendors at all the gun shows in Iowa up charge 3% for CC payments, at least they all advertise that they do via a 3% "cash discount"...
Last year alone I made 3 gunshow purchases, all three vendors asked cash or credit, I said credit, all three said well the cost will be 3% more, all three were told I would not pay 3% more, if they would like to lose the sale over 3% that was up to them only one went that route.
What many seem to forget that even though the vendor may be getting charged a fee by the CC company, they are making substantially more sales by taking CCs, sales they would have never made otherwise. This would be the whole reason vendors of EVERY type clamor to be able to take CCs, it substantially increases their sales
What's next, Walmart, Cabelas, Red Lobster, etc etc all going to charge consumers 3% more for using CCs?? I doubt it.....Guns/gun vendors are the only ones I've ever seen do this....
Last year alone I made 3 gunshow purchases, all three vendors asked cash or credit, I said credit, all three said well the cost will be 3% more, all three were told I would not pay 3% more, if they would like to lose the sale over 3% that was up to them only one went that route.
What many seem to forget that even though the vendor may be getting charged a fee by the CC company, they are making substantially more sales by taking CCs, sales they would have never made otherwise. This would be the whole reason vendors of EVERY type clamor to be able to take CCs, it substantially increases their sales
What's next, Walmart, Cabelas, Red Lobster, etc etc all going to charge consumers 3% more for using CCs?? I doubt it.....Guns/gun vendors are the only ones I've ever seen do this....
johnwilliamson062
Moderator
I've seen independent businesses with no relation to guns also doing it.
Those stores already charge the cash-paying customers that extra 3%, as their prices have that built in. I am seeing more and more gas stations go this same route - if you do not pay cash or use their company's credit card, the price of the gas goes up about .10/gallon.
These folks are trying to lure you in with the lowest price they can advertise so you'll stop there first and that gives them the better shot at making the sale.
CUBAN REDNECK
New member
Yes, they lure you in with a price and then upcharge you. I try to buy from vendors who do not upcharge. Today the norm is 3%, tomorrow it could be higher. I also avoid gasoline stations that do the same thing.
My business pays closer to 2% than 3% for credit and debit card transaction, but that represents over 10% of profit, and well over 80% of my dollar volume is done by plastic. I don't know if I am typical or not, but if the banks are taking 8 to 10 percent of EVERYONE's profit, that is a huge drain on the economy. I understand that there are costs to the banks for processing transactions, but I wonder what their profit margins are after taking a tithe of my profit.
montanaoffroader
New member
As long as they are up front about it, I really don't care about surcharges. I just factor it into my bidding. Same with shipping charges, as long as it's up front I can factor it in.
I no longer participate in hidden reserve auctions, as they have proven to be a waste of my time. And it's not about the bid process itself, it's about the time I spend researching before I bid. Too many other fish in the sea.
I no longer participate in hidden reserve auctions, as they have proven to be a waste of my time. And it's not about the bid process itself, it's about the time I spend researching before I bid. Too many other fish in the sea.
Honestly, I wish I knew the fees itemized like this all the time. I use my cc all the time for the points. Why? Cause retIlers have no cash discount and those points pay me back.
Now, what to do.....
In reality, cc's give me and the retailers some benefit, but we all should know the cost.
Retailers should clearly upcharge and show you the cc upcharge. Credit card companies would then be forced by public pressure to reduce those fees.
A law ought to be written to show you fees and profit on your receipt for every item bought....like buying a house.
Would you buy this?
Glock 19 $300
Store profit(includes overhead) $175
Fed, state, local tax $47.50
VISA fee $23.75
Transfer fee $50
I'll bet you have. What's worse is you paid the VISA fee when you paid cash!
Now, what to do.....
In reality, cc's give me and the retailers some benefit, but we all should know the cost.
Retailers should clearly upcharge and show you the cc upcharge. Credit card companies would then be forced by public pressure to reduce those fees.
A law ought to be written to show you fees and profit on your receipt for every item bought....like buying a house.
Would you buy this?
Glock 19 $300
Store profit(includes overhead) $175
Fed, state, local tax $47.50
VISA fee $23.75
Transfer fee $50
I'll bet you have. What's worse is you paid the VISA fee when you paid cash!
A few restaurants started doing that re: Obamacare costs. Instead of just upping their prices a little and building it in, they chose to separate it out and let customers know in a not-so-subtle way the reason for the cost of a meal going up. Cruise lines are also notorious - they add 18% to everything you buy on the ship so that $3.50 can of Coke is actually closer to $4
Small businesses that accept cards need to do something to offset that cost. The banks and other similar groups have been working towards a cashless society for decades as it is a lot easier and cheaper to transfer electrons back and forth instead of having folks count, store and transfer large wads of paper.
Small businesses that accept cards need to do something to offset that cost. The banks and other similar groups have been working towards a cashless society for decades as it is a lot easier and cheaper to transfer electrons back and forth instead of having folks count, store and transfer large wads of paper.
I would vote a big fat --NO-- for legislation as suggeested above.
Far too many laws, far too much abuse, more legislation means more COST of legislation.
Too much GOVT already, turning to those imbeciles for help in everyday issues is an awful idea most of the time. And especially in & around the gun buying game where prices are negotiable and haggled upon much of the time anyway.
Far too many laws, far too much abuse, more legislation means more COST of legislation.
Too much GOVT already, turning to those imbeciles for help in everyday issues is an awful idea most of the time. And especially in & around the gun buying game where prices are negotiable and haggled upon much of the time anyway.
credit cards are usually 3% not 7%. And yes i would buy it? Im confused there is no way not to pay for taxes and probably transfer fees, whatever that entails. If youre paying same as cash as cc in mom and pop, you really should ask for a discount.
I'd like to point out that credit card companies charge that fee to the merchant, so if you buy a $100 item with a credit card the merchant gets $97 and Visa gets $3. That is why they charge $103 and it makes perfect sense. I only pay via credit card if it is an untrusted merchant, online for example, and I want fraud protection OR if I hate the vendor and want to squeeze their margins out of spite (rude or inattentive service for example).
Expecting someone to eat a loss just so you can make a 3% donation to visa is unreasonable overall though in my opinion.
Expecting someone to eat a loss just so you can make a 3% donation to visa is unreasonable overall though in my opinion.
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