GTFD2

Went in to my local Chevrolet service department yesterday to schedule an oil change and DCT filter change. The free one from GM. Posted all over are signs that they are now charging a 3% premium to use your credit card. Visa, MC, etc. Way to make me want to start looking for a different dealer.

Zymurgy

Yeah, they are making up what it costs them to process a credit card payment. CC processing transaction fees are excessive.

Landru

Maybe there're dealers w/o a surcharge for CCs.
Blame CC companies.
Surcharges offset fee charged to busineses for 'convenience' of CC useage.
BTW FWIW noticed surcharges at eateries lately also, expect same w/ all other businesses going forward.
Businesses, apparently, no longer are willing to accept a CC hit to their bottom line.

GTFD2

We are always told that the most profitable part of a dealership is their service department. Now they will just make it a little more profitable. This policy as it spreads thru other businesses will make people look for places that don't charge the premium or quit using their GM credit card. The GM rewards aren't worth the 3%.
Yes, I have stopped patronizing a few restaurants in my area because of the added fees.

GR8C8

What's the alternative? Cash? Very few people nowadays are walking around with hundreds in their pockets to service their car. They must be an old school dealership. What they should have done is bake the cc fees in the cost of service and advertise discounts for cash.

in some states, it's illegal to upcharge for cc fees.

GTFD2

Another option is to write them a check.
We had a clothing store years ago and the credit cards were great. Much rather have the 2.5% taken from the sale than risk bad checks or having our own credit for customers.

SEVNT6

Last week when I took our dog in to the Vet I was asked credit or debit for the first time.
New 3% fee for credit.
I'll pay debit, check or cash from now on...

Red Mist Rulz

There's a bill in Congress designed to reduce credit card interchange fees. The credit card industry if fighting like crazy, running ads claiming it will eliminate rebates, and worse. Total hogwash. Write or call you congressperson and senators and ask them to support the Credit Card Competition bill.

My dealer has started doing that, too. I'll still choose my dealer on the quality of the service department, not whether they charge a fee for credit card use. I'll write a check or use a Debit card if I don't want to pay the fee.

Blue Lion

It's rare a merchant charges the fee back to the customer but I understand why they do. As a consumer I love using my credit card as I get points for cash back etc. Up to the merchant to make that call what to charge, and up to use as consumers to shop there or elsewhere.

Purple92

YEP - Because when billing out labor at $150/hour (or more) - it's just so darn hard to make any money .......

I expect that with what we are seeing in the economy right now - a substantial percentage of the population has no choice but to put the repair bills on their credit card - and the Stealerships know it.

Avanti

The fee is hardly unique to your dealer these days. Many different businesses do so, especially gas stations/convenience stores where I live. Or, write a check, which works for me. Suck it up and take a drive.

spireland

Usually violates card agreements. They can give cash discounts but surcharges usually go against their credit card processing agreement.

Call your credit card and complain. Visa/Mastercard really, really, don't like it when companies do this because its hurts their brand.

spireland

It's pretty dumb. Credit Card fees are usally way below what it costs businesses to process cash. Cash isn't "free". There are labor costs to count / handle /deposit, and there is such a higher risk of fraud, to say nothing of costs related to errors from cash that are way easier to introduce.

Companies that ignore the costs of cash are pretty short sighted and don't really understand their costs. Not to mention fees on top of prices (not cash discounts) are usually credit card processing agreement violations.

SMOKN C8

I am seeing this all over, even at my doctor's office. most everyone around my area is charging the customer for the cc transaction fees.

Zymurgy

Very few states still prohibit CC fees:

Currently, credit card surcharging is illegal in the following states and territories:

• Connecticut
• Massachusetts
• Puerto Rico

JMBrooks61

Charging a fee is stupid. I owed a small business that did less than $200K in Credit Card sales. My fee was 1.65%. My opinion is
that the last thing I want is bad checks, and cash in the "till". Eliminates the possibility of cash theft, employee cash theft, being held
up going to the bank, etc etc. The only good thing about "cash" is I could steal it myself and not report it as income. Nothing else in
my opinion. Credit Card fees are part of operating a business.

1 STING

Making a cash withdrawal from a credit card carries a 4% fee plus a high interest rate if not paid back soon after.


George

magneto10

Didn't notice when I had the corvette in over the summer

But when I had my escape in a few weeks ago- no added fee for credit- but they gave a discount if you used cash

Bob Paris

Automobile dealers have been exempt from that clause for years. Otherwise, people with a high enough credit limit would charge the entire cost of a car to their card.

ZipZap

That's because they don't want to front your free loan.

Depending on the issuer, they get very cranky when they are identified as adding costs and it is typically in the agreement to not do so in an identifiable way. The business may always refuse to let you use the card, but adding fees and identifying the CC company as the source of those costs is frowned upon.