Dealer charging 3% for using Ford Credit card

Mach1E

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I realize it's just a different side of the coin and a slight of hand but I like businesses who offer a discount for paying with cash.
For sure.

Even though it’s basically the same thing. Cash discount feels good, credit card fee feels bad.

It’s a simple change and I’m not sure why more businesses haven’t figured this out.
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milepost1

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You can tell who owns or has owned businesses. Those who don't want their airline miles and business owner just accept (eat) the fees as part of business.
1% of $500 is $.50. 1% of $5000 is $50. And 3% of $500 is $15, 3% of $5000 is $150. I guess not much, until you do it 10x or 100x a day. That money has to come from somewhere. If you own a business that accepts cc, when you get your statement and you see $5,000 went to cc fees, you start to talk real money, $60,000 over a year. A business has to pay for that, either raise prices for all or just for cc customers. Nothing is free, those "free" Ford points? Paid by, merchant, manufacturers, bank fees, and interchange fees. Consumers want all the "free" stuff. Merchants pay as not really an alternative, as consumers wont buy unless they can use cc for their "free" stuff.
 

Mach1E

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You can tell who owns or has owned businesses. Those who don't want their airline miles and business owner just accept (eat) the fees as part of business.
1% of $500 is $.50. 1% of $5000 is $50. And 3% of $500 is $15, 3% of $5000 is $150. I guess not much, until you do it 10x or 100x a day. That money has to come from somewhere. If you own a business that accepts cc, when you get your statement and you see $5,000 went to cc fees, you start to talk real money, $60,000 over a year. A business has to pay for that, either raise prices for all or just for cc customers. Nothing is free, those "free" Ford points? Paid by, merchant, manufacturers, bank fees, and interchange fees. Consumers want all the "free" stuff. Merchants pay as not really an alternative, as consumers wont buy unless they can use cc for their "free" stuff.
I’ve done both.

But it’s apparent some business owners forgot what it’s like to be a consumer.

In the end, the cost doesn’t matter. What matters is how you present it (marketing) to the consumer.

You are much better off just raising prices or offering cash discounts than slapping a “3% charge for credit card” sign on your registers. People don’t like that.

Other short sighted business owners go “cash only” and lose out on sales. Sure, cash only is code for “I cheat on my taxes,” but business is definitely lost.

Bottom line- consumers don’t like what they feel are hidden or “surprise” fees.

Amazon became the global success it is by just adding “free shipping” into the price.
 

CTZ

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You can tell who owns or has owned businesses. Those who don't want their airline miles and business owner just accept (eat) the fees as part of business.
1% of $500 is $.50. 1% of $5000 is $50. And 3% of $500 is $15, 3% of $5000 is $150. I guess not much, until you do it 10x or 100x a day. That money has to come from somewhere. If you own a business that accepts cc, when you get your statement and you see $5,000 went to cc fees, you start to talk real money, $60,000 over a year. A business has to pay for that, either raise prices for all or just for cc customers. Nothing is free, those "free" Ford points? Paid by, merchant, manufacturers, bank fees, and interchange fees. Consumers want all the "free" stuff. Merchants pay as not really an alternative, as consumers wont buy unless they can use cc for their "free" stuff.
Ask yourself how much your sales would be if you didn't accept credit cards. For most businesses, it would be much less. It's a cost of doing business, as are most things when you own a business. Do they expect the credit card companies to do the processing for free?
 

Space_Pony

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Most of the Amish stores around here do not accept credit cards, so if you intend to buy something, take some cash.
 


cjljr41

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Nice thing about paying cash is avoiding being asked if I want to add a tip at the payment kiosk.
 

TechnoBill

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At 3%, this become a profit center for them unless they have a history of credit fraud.
 

AlpaChino

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NO! Reason 461 why credit card companies and credit card processors suck. I'm a small business owner just like most dealerships and credit card processing fees SUCK. Either you know why or you don't and most people don't.
Have you started accepting bitcoin lightning payments yet and saying "screw you" to the CC companies?
 

Art

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I just completed my 20k maintenance on my 2022 ME Prem. While at the cashier to pay WITH MY FORD CREDIT CARD, I was told that there is a 3% charge for using credit cards. I think this is ridiculous as they push you to get and use the Ford card by giving you incentives to pay with it at the dealer. I am curious if any other dealers do this or is this the only one.
A lot of businesses charge 3% for a credit card purchase. Someone has to pay the 3% the card charges. It's either you or the business.
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