Bullion dealers allowing Credit card purchases with an added fee

EagleEye

I see that some bullion dealers are allowing bullion purchases with a credit card. The new rules allow them to charge the merchant fee to the customer. Do you think we will see this from coin dealers in the future?

mrearlygold

mrpotatoheadd

<< <i>Do you think we will see this from coin dealers in the future? >>

It's always been happening, but some people don't see it. Lots of delaers offer a discount for payment by cash/check over a cc payment. This is essentially the same thing as adding a cc fee.

edited for clarity...

derryb

<< <i>I see that some bullion dealers are allowing bullion purchases with a credit card. The new rules allow them to charge the merchant fee to the customer. Do you think we will see this from coin dealers in the future? >>


Note the ten states that have banned the fee, don't know how this will affect out of state on-line orders.

mrpotatoheadd

<< <i>Note the ten states that have banned the fee... >>

Note the misleading headline:

"Attention shoppers: Another credit card fee is here"

"Another fee"? The credit card fee has always been there. It's not new and businesses surely have been accounting for the fact it had to be paid. What's different is making the fee visible to shoppers.

BAJJERFAN

I wonder if PayPal will allow sellers to collect the fee.

Unless it is a cutthroat business, most places have built this fee into their selling prices. If necessary, I'll just go back to writing checks.

abitofthisabitofthat

I could name a few that have been adding on credit card surcharges for quite a while, regardless of what the law said.

pennyannie

<< <i>I could name a few that have been adding on credit card surcharges for quite a while, regardless of what the law said. >>



+ 1

Some do not advertise it but when it come time to make a sale or watch it walk out over 50 bucks.....

If it is starting to become a common thing, then the buyers are now running out of cash or they want to hold on to the cash they have.

Is there a difference of running a credit card in person vs over the phone? Years ago when i had a store it could bite you if you did not actually swipe the card.

RYK

<< <i>

<< <i>Do you think we will see this from coin dealers in the future? >>

It's always been happening, but some people don't see it. Lots of delaers offer a discount for payment by cash/check over a cc payment. This is essentially the same thing as adding a cc fee.

>>

derryb

<< <i>

<< <i>Note the ten states that have banned the fee... >>

Note the misleading headline:

"Attention shoppers: Another credit card fee is here"

"Another fee"? The credit card fee has always been there. It's not new and businesses surely have been accounting for the fact it had to be paid. What's different is making the fee visible to shoppers. >>


This is a new fee that gets added to the purchase price at the register and is payed by the customer to the merchant to cover the merchants existing CC fee. What's different is making the shopper pay the fee over and above the cash price. Historically merchants ate the fee - you paid the same price whether using CC or paying cash. Of course we all know that this previous cost of doing business was always added to the purchase price that everyone paid, including cash customers.

LindeDad

Looks like the key is to look for the American Express logo and then they can't charge it.

JCMhouston

<< <i>Historically merchants ate the fee - >>



Well, that's not quite true, most merhcants (at least the ones that stayed in business) added it in to their cost of business, so consumers wound up paying it, they just don't want to admit it.

originalisbest

My experience in IL is that dealers will sell you bullion via cc if you insist, but you will pay the additional % for it. For numismatic purchases, they don't tack on the premium.

mrpotatoheadd

<< <i>... so consumers wound up paying it, they just don't want to admit it. >>

Kind of like "free shipping" on eBay.

derryb

<< <i>

<< <i>Historically merchants ate the fee - >>



Well, that's not quite true, most merhcants (at least the ones that stayed in business) added it in to their cost of business, so consumers wound up paying it, they just don't want to admit it. >>


Like I said: "Historically merchants ate the fee - you paid the same price whether using CC or paying cash. Of course we all know that this previous cost of doing business was always added to the purchase price that everyone paid, including cash customers."

johnny9434

<< <i>I wonder if PayPal will allow sellers to collect the fee.

Unless it is a cutthroat business, most places have built this fee into their selling prices. If necessary, I'll just go back to writing checks. >>

i think a few more of us will do the same thing. ( if were allowed to do that, i see some places not taking checks anymore as well )

airplanenut

<< <i>What's different is making the shopper pay the fee over and above the cash price. Historically merchants ate the fee - you paid the same price whether using CC or paying cash. >>

Which means that when you pay with cash, you're paying the CC fee, too.

Baley

my shoeshine boy mentioned that he was borrowing money on his credit card to buy gold and silver bullion, because he read on line that they don't ever go down, only up, because of money printing

DoubleEagle59

Legal or not I can understand why companies have to charge CC fees on a large purchase that has liitle profit margin.

When I worked in the diamond industry and when we sold a $20,000 diamond that we were only making 3% profit margin, we had to charge the extra 2% charge when the customer paid by credit card.

For any disbelievers of a 3% profit margin on a diamond, I worked for an internet company and basically we were a brokerage house or middle man between the diamond suppliers in NYC and the customer.

Davideo

<< <i>[Of course we all know that this previous cost of doing business was always added to the purchase price that everyone paid, including cash customers." >>



Exactly, the cash customers were the losers.

Greeniejr

The way around that was to quote a "cash discount price" and to say you can pay the full listed price if you want (which is the CC price)

WTCG

There are loopholes that allow merchants to get around the credit card fee issue. Calling the fee a "mandatory purchase" is one method.