[kwlug-disc] Cash becoming illegal?

unsolicited unsolicited at swiz.ca
Sat Nov 6 00:29:47 EDT 2010


Eric Gerlach wrote, On 11/05/2010 3:12 PM:
> On Fri, Nov 5, 2010 at 3:05 PM, John Van Ostrand
> <john at netdirect.ca> wrote:
>> Unlike Paul, I'm fine with debit. The vendor pays a 40c per
>> transaction fee regardless of the size of transaction.
> 
> Actually, nowadays it's more like $0.10 to $0.20, depending on the 
> volume of the vendor.

Apparently it's much much worse than that, and has gotten even worse 
the last couple of years. The cc companies can't charge more, people 
aren't spending, so their revenue is down, but they've made up for it 
by introducing more and more, and more unavoidable, fees.

My local garage has gone to cash only because of it.

This is all anecdotal, but additional fees include:
- moneris machine charge
- per transaction charge
- monthly charge
- risky customer charge
- just in case its bad charge

Yes those are made up, as I can't remember what all he said, but in 
essence extra fees were charged, in case of fraud, bad debts, and all 
sorts of other things.

Something like his fees for being able to take a credit card payment 
had tripled or quadrupled in the last two years.

When the credit card company starts taking 6% - 15% off the top ...

And if you're competing for the same thing on price, the only thing 
people hear is the price. The mind stops listening before they hear 
'3% discount' for cash.

Canada Computer (last year?) stopped their attempts to say 3% 
surcharge for credit (or 3% discount for cash?) everywhere. Not saying 
it isn't still there in the writing, only that it's not nearly as 
clear or blatant as it was.

Apparently card agreements include not revealing the % the cc company 
gets, nor offering cash discounts.

Myself ... I significantly prefer cc's as I get the statement at the 
end of the period and I can see in one spot where I've spent. The less 
I use cash, the more this one page provides one-stop shopping to show 
this. I will not use debit if at all possible - hate bank fees.



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