Gun show + 3% credit card use increase

[Liko81]

I have always heard that they can't charge extra for credit card transactions, but they CAN give a "discount" for cash, however, they have to have it posted on a sign with both prices listed. They can't have one price listed, then when you go to pay they say "Oh, but there is a 3% charge for credit cards".

I'm not sure how true this is, but it's what I've always heard....

You're correct. Advertising one price and charging another is false advertising and the seller gets in BIG trouble for it.

[Mike1951]

Try telling a gun show dealer he can't charge the 3% and he probably won't even sell you the gun for cash, as they are an independent lot.

Compare their price with the 3% to what you could buy it for elsewhere. If it's a better price, then pay the 3% and keep shut about it.

If you refuse to pay the 3% as a matter of principle, more power to you.

I don't think the larger dealers with the best selection are going to change their policy. However, there are usually a couple of dealers at every show that use 'credit card same price as cash' as a selling point. Again, compare their prices without the 3% to the other dealers prices that include the 3% and buy whichever is lowest.

If the whining over the 3% has any effect at all, it will probably cause dealers to stop accepting credit cards or to raise prices across the board, regardless of payment method.

[elwood blooz]

I found out at the last gun show that using your debit card as debit (and not charge) gets you the cash price.
At least it did at this dealer, AJC Sport Sales.

I bought my XD a year ago through AJC and they did the same thing for me.

[tbranch]

As a business owner who accepts credit cards, I have to pay a 2.7 percent surcharge for accepting the card. I neither pass that along nor do I discount for cash. I just figure it as the cost of doing business.

chances are you operate on a higher margin than a gun show dealer.

I'm not sure what their margins are like but it would make much better business sense to raise the price 3 percent and offer a cash discount than to try to add 3 percent for using a card.

Of course, 3 percent of a $500 weapon is only $15. Are most gun show shoppers like amateur radio operators--always looking for the best deal? I know a few who will spend three hours working a deal in order to save $20. Three hours of my time is worth much more than $20.

Tom

[CJATE]

As a business owner who accepts credit cards, I have to pay a 2.7 percent surcharge for accepting the card.

Tom

you and I need to talk, drop that down.

any one who marks up their total for use of cc is in violation of their merchant service agreement. Anyone who sets a base line is in violation of their merchant service agreement (i.e. $3 min).

however,,, it's a free market, buy it or don't. You can call your card company and complain and the vendor "may" loose their MS account. You can also call your CC company and dispute a portion (i.e. 3%) of the transaction.

I tell my customers if it's that big of an issue, raise everything 3% and offer cash discounts (or don’t and net 3%) , and no base line... most offering CC can’t afford not too.

[lawrnk]

Specs, the biggest liquor store in Houston essentially does this. They offer a cash/debit discount, and I guess that makes it about the same.

[bigolbigun]

I was in a gun store on Sat. morning just looking around and a guy was buying a new Glock. He handed the clerk his credit card and the clerk told him he would have to add 4% to his bill. The guy did not protest, but if it were me I would have walked out empty handed.

[TacShot]

While the CC companies will politely listen to your complaint and tell you the vendor is violating his agreement, the CC companies will never go after the vendor because he is the one generating the cash flow, and they know you will continue to use your card again and again. It's a losing battle. It's not worth getting excited over. You either pay it or walk away.

[sf340b]

Don't look now but while we are hagling over 3%, somebody is getting stuck with 21%. I don't think the real problem is a couple of merchants with a 3% margin.

[shipwreck]

Yes, it is illegal to do this. Years ago - there was a letter to the financial guy in the Houston Chronicle (its in there every Monday in the financial section). Anyway - it is clearly illegal, and if you wanted to, you could report them to the attorney general's office.

I understand that gunshops operate on a small profit margin - especially at gun shows. But it is illegal.

I had an appliance store try to pull that on me 2 years ago, though - I paid extra for some upgrades for my new house, and I had to pick the items at a specific location the builder had an arrangement with. But when the store pulled that, I DID threaten to call the AG's office. They eventually backed down.

As others pointed out - a cash discount is the way to legally get around this.

[jbenat]

Since I am aware of the 3% charge at gun shows (legal or not), I take my check book with me and If I want to buy anything, I just write a check and reimburse my account using online banking when I get home. No charge for a check and I can charge part, pay for part out of my savings account and/or my checking account. Doesn't seem like it costs so much if you can divide up the way you pay for it!

[Pete]

Although I do not like the idea of adding 3% to a sale, it is my call to purchase the item or not.
A few times the % mark up was still a good deal in my estimation, so I paid it.

I understand the dealer would not want to lose some of his slim profit margin on a sale, but how much does a CC company charge? I mean one fella said it was 2.7%, so why doesn't he just mark it up 2.7% (I know hard math).
How much does it vary? By CC company or vendor?

I was always under the impression the CC was charging less then 3% and now this increases the profit margin.

[Trainman]

One of the few things I remember from my Business Law class way back in the '70s, (a lot of that era is a 'blur' now), was that it is perfectly legal for vendors to base their charges on the method of payment. 'One price cash and one price credit.'
Bottom line was this: 'Cash in hand talks louder than credit'

[KBCraig]

One of the few things I remember from my Business Law class way back in the '70s, (a lot of that era is a 'blur' now), was that it is perfectly legal for vendors to base their charges on the method of payment. 'One price cash and one price credit.'
Bottom line was this: 'Cash in hand talks louder than credit'

Yes, it's legal, but it's a violation of the credit card companies' terms of service. "Cash discount" is usually acceptable; "credit card surcharge" is not.

[Trainman]

Could it be a simple case of semantics?