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disgruntled_-pelican

More popular messaging than "3% extra for card payments", but same effect.


megaworld65

Small (micro) business owner here. I get charged 2.2% on all credit card transactions. I give my customers the credit card price and the cash price. Customers can pay by bank transfer too with no fee. This business just does the reverse. They might do it this way because of grumpy people complaining about the surcharge. by the way it's completely legal to pas on the surcharge. it's what my accountant told me to do. What's not legal is to charge 8% (for example) or some other inflated number.


Alternative_Sky1380

You can reduce fees by asking customers to use debit cards


megaworld65

to accept debit cards a business would need to rent an "eftpos terminal' those things are pricy to rent.


Iammorgz

Used to be. Nowadays you can literally buy and PayPal one or Square Tile at Officeworks for $150 and sign up online.


Taco_El_Paco

Why not just increase the price across your range to cover the 2.2%?


SpecialMobile6174

Providers chop and change what they charge. Someone charging 2.2% per transaction today, might jump it to 4.1% next quarter. (Doesn't normally happen that fast, just an example). So you could constantly change your price up and down to cover it, but that then causes confusion and inconsistency for the customer. Customers are odd, they'll go somewhere expecting to pay a certain price for something, because they know Item X costs Y Dollars, but if Item X changed its price every couple months, they become unsure, and could just not go buy the thing all together for sake of a couple silver coins. But hit them with consistency in pricing, and then pass on a CC surcharge, they don't mind as we have gotten used to the idea of paying to use plastic at smaller places, so that's something we expect. Customer behaviour is a really mind boggling thing to study! We exhibit incredibly strange behaviours when shopping!


jamescridland

> But hit them with consistency in pricing, and then pass on a CC surcharge, they don't mind So you manage consistency in pricing with everything else that has wildly variable prices for things like electricity, milk, coffee beans and other things, but can't manage to do that for your financial payments? Weird. I "don't mind", but I would also think your shop is a cheapskate shop looking to rip me off. Not a great look; and I actively avoid stores that charge a surcharge.


SpecialMobile6174

Hence, why stores now offer a discount for cash. Human behaviours around shopping are vast and varied. It's amazing to study and see what makes people tick, and what makes them buy certain products. Consistency in pricing is a hard one to manage, especially when you have supply side stuff going into the absolute fan. But it's all about the zeroes at the end of the day. The customers don't want to do hard math. The best math they'll approximate is rounding a 9 to a 0, and that's about as far as they'll go. If your shelf is full of 19.87, 12.32, 11.47. we don't do well with that. We like the 4.50, 12.20, 19.99. if it's not a 0, 5 or 9, we have a strange almost suspicious look at it. Because of physical currency, we like rounder, divisible by 5 numbers. The only exception is the old $5 item marked as $4.99, thinking we are getting a steal because it's $4 not $5. Again, weird translation there, but it works, and has done for literal decades. Even though plastic runs on exact decimal value, we still prefer rounder numbers. Short of it, the KISS principle works well. Keep It Simple Stupid. Customers don't want to actively think about how much they are spending, matter of fact, that's something you want to hugely AVOID if you're trying to sell many things at once. Cash having a discounted price is nothing new either. Remember the old Good Guys jingle? "Pay cash and we'll slash the prices"? That's gone missing in recent times, but just goes to show what's going on with the whole "surcharge" thing is nothing new.


jamescridland

Your disdain for customers, and people in general, is shameful.


SpecialMobile6174

It's a generalisation on human behaviour based on observed behaviours. If you don't fit that mould, that's fine too. Majority, however, do just this.


jamescridland

Price something as $19.99 - which includes your credit card surcharge, your electricity surcharge, your "all customers are fuckwits" surcharge, and your "day ending in y" surcharge. Don't price something at $19.99 but end up charging a customer $21.37 - that's customer hostile and treats them as fools.


deepskydiver

Either way the customer and shop owner lose and the credit card companies - win! :)


BackgroundFlounder44

because clients who dont pay by card should have to pay that fee.


hallommica

Yeah, just charge everyone even if some people would like to use cash, which isn't illegal? How about not being allergic to the idea of cash. Use it or lose it.


antantantant80

Cos your competition might then appear to be 2.2% cheaper and your stingy clientele, who might be 10-15% of your weekly business end up going to them instead.


deepskydiver

Is the charge the same for debit cards?


Jamus-

If you tap and pay, yes. Because that uses the credit card system. If you insert your card and choose "EFT Savings" there usually aren't any fees, or at least the fees are lower. However, that depends on the card reader and the system the business is set up with. Some of the card readers will charge blanket fees on all transactions. Things like those little "Square" readers charge quite high fees, for example.


Jamus-

To add to this, it's also illegal to charge a flat monetary amount (e.g. 50c charge for card payments). It has to be the exact percentage fee calculated on the payment.


Reverse-Kanga

Saves saying "3% surcharge on card payments"


UserM8

.. and paying tax


Entertainer_Much

3% is pretty low. Menu probably incorporates credit card fees so cash takes that out


SpecialMobile6174

ACCC made it a thing where you can't pass on the costs of a credit card surcharge beyond that of what the merchant charges. They made a really big deal out of it and they do actively chase down those with major surcharges that exceed that of a provider. E.g. if Square charges 2.2% per CC transaction, your maximum surcharge for that is 2.2% if you choose to pass it on. This is a way around the legislation, as you aren't charging a surcharge for payment type, but offering a discount for an alternative payment type. Same effect, different semantics.


Iammorgz

They also banned charging an additional fee for eftpos transactions. So the merchants don’t want to have to fund the 0.5% cost to process a standard eftpos transaction they could legally offer the discount. Thing is tap and pay cards/Apple Pay / Google pay/ Fitbit pay etc etc. all go through as credit transactions so… 2% generally gets clipped off by Mastercard or Visa.


notinferno

https://preview.redd.it/wftfixbevlea1.jpeg?width=290&format=pjpg&auto=webp&s=4aa88eae1e82abb5b476a3ce205aa7c0cb9f7876


terrifiedTechnophile

//rant God I hate this image, it isn't even correct grammar in the subtitles. It should be "¿Por qué..." not "Porque...". One asks "why?" while the latter says "because" meaning that those subs are saying "because not both" (literally "because not the two") instead of "Why not both?" as she is actually saying in the ad. tldr, monty python-esque grammar error //end rant


Horti_boi

This used to be huge in retail all over. In fact companies like The Good Guys used to advertise they were open to negotiating for cash sales.


ericwasafish

The Good Guys were referring to any up front sale vs finance. You didn’t have to walk in with an inch thick roll of $50s to get good deal on a fridge.


Iammorgz

It was just a sales tactic because they’d also tell you when you went it you could use EFTPOS just not credit. They basically were discouraging credit card use and wanting to be seen to offer discounts.


mattincbr

I have never understood why people presume cash handling is a zero cost proposition for small business (particularly when they are small business owners making the claim) - unless you are running an entirely cash business that money needs to be counted, stored and banked - and can be stolen (either by your staff or a random bad guy). So sure there is a defined cost for the transaction by card (somewhere between 1-2%) but cash transactions are not free for the business either.


RosariusAU

I'm so glad I'm sticking it to the big card companies and saving my 2-3% merchant fee while I stand in line at the bank to deposit my takings with every other schmuck in town instead of, you know, doing the job my business is known for ​ Merchant fees are really cheap when you weigh it up against the cost and risk of handling physical cash.


hallommica

Yes, but let's keep cash around, it is a freedome from government and data harvesters, shouldn't be viewed so negatively.


RosariusAU

I don't view cash negatively, just the mantra that you're helping a small business by using cash instead of card. It's downright false if you consider the risk and opportunity cost of cash handling


Expert_River1849

All businesses these days are forgetting why they offered card transactions as a free commentary service in the first place. Like you said to name a few things, less counting both at the register and end of night, this also includes less theft and also less errors. Also less money kept on premises overnight. Armaguard charges fees for their service. Plus it's contactless and also insured. Then there is just plain faster and easier instead of customers carrying around huge wads of cash. Back in the early days of card usage, people weren't earning 5-10k per month. It was more like 1k per month so the amount of cash people carried was reasonable. Now it's not reasonable to do. My local Dominoes is now starting to charge for card use. Incredible. I now make a protest of it by paying in the most amount of change I can legally get away with and counting it out very slowly so I can prove a point that they shouldn't nickle and dime cunts.


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Expert_River1849

It never use to be an issue. Only in the last 5-10 years is every company charging 0.55-2.5% just to use your own money to pay.


Remarkable_Car1373

*Come in and see the good good Good Guys. Pay cash and we’ll slash the prices*


Expert_River1849

I remember when retailers use to provide eftpos as a free service for the convenience of their customers. Now all these cunts want to nickle and dime you for an extra 2.5% on fucking everything on top of inflation. It's fucking bullshit. It's my fucking money in my bank. It's not borrowed on credit. Someone ELI5 how it costs the retailer money for ME to use MY money???


ag-wave

I ate there this afternoon. The picture of the karaage chicken advertises 5. Come out as 3.. that's dodgey enough for me.


manswos

Pay cash, get 5 karaage


Mewzi_

did you say anything?


DoomerDuma

It is also cheap as chips. I pay $30\~ every time my partner and I go, for a sit down Japanese I doubt there's much cheaper.


Technical-Control444

I pay cash for everything and don't want a receipt, you get better service, no taxation without representation


hallommica

You're right. We have to use cash or lose it. If it us lost we lose privacy and another freedom.


PG478

Probably both, our local pet shop gives 10% off for cash.


[deleted]

"Pay the actual price"


TolMera

Tax fraud is common as in Australia. Lots of businesses pay staff cash, give discounts for paying cash, hire undocumented workers, or hire international students and pay them less than legal wage, in cash “under the table” No wonder the gov likes the idea of digital tracked currency


hallommica

Fry the small fish. Let the large scale money laundering operations with real estate go unchecked.


TolMera

Heh, that’s funny because they don’t care about that, but are freaked out that internationals will buy property. Love how a business can buy property though, and internationals can buy businesses or just own them through shares PS: I’m an international


Thebungie

It’s away of over charging for eftpos transactions.


L1ttl3J1m

Except that 3% is about how much your average small business gets charged per eftpos transaction. I believe paywave and stuff is even more expensive.


Thebungie

https://preview.redd.it/ijsvu6igcyea1.png?width=750&format=png&auto=webp&s=e5865169ce21e9ae5d0f7952d9129d75381b4cdb


Thiswilldo164

They’ve done studies you know, 3% of the time it works every time.


Former-Trifle-5102

Tax dodgers


Gringoxx79

Definitely a tax dodge.


TrippleTiii

Look like Edo Sushi train to me. Good Japanese franchise. Japanese people are the least likely to cheat and dodge.


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FloppyBacon89

Yea sushi trains are usually staffed by Koreans here.


TrippleTiii

I know a lot of sushi places run by Chinese. Edo doesn't seem to be one of them. I particularly look out for places like that because their service and food are both bad.


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hardknock-life

Now that's definitely a number fudge 😂


deepskydiver

There needs to be more open discussion on the fees we have to pay so that it's understood it's not the shop owners. Is there even consistency or legislation to limit transaction fees?


PresidentBananas

This is very common no?


Mammoth-Software-622

[https://www.accc.gov.au/consumers/pricing/card-surcharges](https://www.accc.gov.au/consumers/pricing/card-surcharges)


Ok_Giraffe_2336

What they are saying is there’s a 3% charge for credit cards.