Was this a reasonable request?

agentjim007

Dealer has a coin @ $5880 and takes plastic. I asked if I paid by check would he deduct the visa fee of 3%. He replied he would wave shipping but not lower the price. He still owns the coin.

Russ

Depending on his merchant agreement, 3% may not have been that reasonable. Some are as low as 1.5%. Fundamentally, though, seeking a discount when paying by cash or check is a reasonable request.

Russ, NCNE

agentjim007

Thats all he had to say. Just wanted to get the discount for cash (check)

coinguy1

If I had been that dealer (I wasn't and I don't offer credit card purchases - please don't flame me for that):

1) If my credit card fee was 3% or more, I would have accepted Agentjim007's offer.
or
2) If my credit card fee was less than 3%, I would have told Agentjim007 what the fee was and offered to discount the coin by that %.

I'd love to hear the dealer's thinking on this one.

BAJJERFAN

Certainly a reasonable request. Has anyone ever paid by CC solely to make the dealer eat the fee?

stman

I been waiting for this subject to appear.

There are also a few dealers that advertise they take credit cards, but mention you're gonna use one and the "Stories" start and they want a check. But don't want to discount the fees. (I've only asked one time as AgentJim007 did.)

Hence.... they end up putting you on their "Approval" list real quick so they can get the check.

I might even know who he speaks of.... but I wouldn't want to reveal and be negative on this forum.

coinkat

sounds fair and reasonable

dthigpen

<< <i>Certainly a reasonable request. Has anyone ever paid by CC solely to make the dealer eat the fee? >>



Heh heh heh, No Comment. (I love the cashback on my AMEX)

clackamas

BTW- If they try to charge you more because you pay for a credit card it is 100% against VISA and Mastercard Policy and they could very well loose thier right to accept cards. I use to work for VISA and always just slam people when they try to do this.

ziggy29

<< <i>BTW- If they try to charge you more because you pay for a credit card it is 100% against VISA and Mastercard Policy and they could very well loose thier right to accept cards. I use to work for VISA and always just slam people when they try to do this. >>

Technically true. But while it's really the same thing, instead of charging $100 for an item and $102 for a credit card surcharge, they charge $102 for the item and give a $100 cash "discount."

For some reason, this passes legal muster just by calling it a "cash discount" instead of a "credit card surcharge."

RYK

Reasonable request?

Yes.

I have also been waiting for this topic to appear. I personally pay (promptly) by check for all of my purchases to dealers. I do not want them to eat the fee. Since I am not going to float the purchase, it does not make sense for them to take a hit on it. The dealers who sell coins to me know that I do not pay by credit card, and I expect that their pricing reflects this.

Interestingly, for the rare coin that I purchase from a big auction firm (Heritage, B&M, ANR, etc.), I always pay by credit card. It is most convenient for me. There is no personal relationship with the larger firms, I already feel soaked by the fees, and I expect that the auction firms have a more advantageous deal with VISA/Mastercard than the smaller dealers.

ziggy29

<< <i>Interestingly, for the rare coin that I purchase from a big auction firm (Heritage, B&M, ANR, etc.), I always pay by credit card. It is most convenient for me. There is no personal relationship with the larger firms, I already feel soaked by the fees, and I expect that the auction firms have a more advantageous deal with VISA/Mastercard than the smaller dealers. >>

That's a good point, and I can certainly understand it. Especially when I buy from Heritage -- though it's no fault of theirs, I already have to pay Texas sales tax (since I haven't spent $1000 on one invoice with them yet), so I'm not in a very charitable or considerate mood when that extra 8.25% kicks in.

I guess one reason to pay by credit card, in some circumstances, is to have the coin shipped to you right away. But on the other hand, some dealers will ship something to you on approval, and you can either pay for it or send it back. Depending on circumstances, I suppose in that case (since you already have the coin) you could pay by check and save them the 1.5% to 2% (or whatever it is these days) that the card issuers take.

tradedollarnut

Must not have really wanted the coin to give it up over a measly $165.

I think that many dealers may have figured out a high correlation between those that ask for such a discount and coins being returned. Or at least I suspect it's high. And.... I suspect that most dealers pay perhaps 2% and only get hit with credit cards on 10-20% of their sales. That's an effective rate of 0.2-0.4% on all coins - not so high that they would immediately factor the fee into their pricing. So I can certainly see a dealer working close on a coin not wanting to give a 3% discount on it.

Tonelover

<< <i>BTW- If they try to charge you more because you pay for a credit card it is 100% against VISA and Mastercard Policy and they could very well loose thier right to accept cards. I use to work for VISA and always just slam people when they try to do this. >>



Another way of reading this is that it is against VISA and MC policy to offer cash discounts. This is what I have to tell people when I get asked the question and am usually met with a veiled response of "BS" or something like that.

MrEureka

I suspect that most dealers would give a discount of more than 3% on most coins, just for asking. But it couldn't hurt to subtly mention that you will be paying by check, not credit card. A smart dealer will figure out his savings and factor that into negotiations.

Bear

I guess there are always three sides to a story.

The collectors, the dealer and the actual truth.

In fact a dealer may have a perfectly valid reason

for doing what they do, but for some reason, do not wish

to disclose it at the moment .Maybe they missed lunch and

are just a bit grumpy that day.

morgannut2

I bet you have a dishonest face and just didn't trust your check!

agentjim007

Must not have really wanted the coin to give it up over a measly $165.

Why not put it the other way, he must not have wanted to sell the coin if he would pass on an offer just a measly $165 less (and no visa fee) He has had the coin for months.

regarding my check, I don't expect anyone to ship me a coin until the check clears.

dimples

I usually ask can we split the savings if I pay by check. only one dealer has said no that this is illegal so I pay by Visa and they kick back 1% instead.

khayse

> For some reason, this passes legal muster just by calling it a "cash discount" instead of a "credit card surcharge."

I'm thinking Visa/Mastercard wouldn't allow this either.

To answer A.J.'s question, everything is a reasonable request?
Especially since most credit cards come with some bonus so you're actually giving something up by not using a credit card.

-KHayse