If a dealer accepts credit cards, is there an unwritten rule that you should not use them?

Longacre · August 22, 2006 5:48AM

I was at a local coin shop over the weekend. I bought a relatively inexpensive coin for my nephew (believe it or not, he asked for a large cent for his birthday). The coin was around $50. The coin shop had the Visa and Mastercard logo on the door, and they accept credit cards. After I selected the coin, I went to pay for it (please note that I paid full price and did not try to haggle for a lower amount (the guy actually seemed surprised)). I was going to pull out my credit card, but I felt a little uneasy doing so for such a small purchase. Typically, if I buy a pack of gum at a store, I will use a credit card without giving it a second thought. But with the coin shop, I felt as though there might be an "unwritten rule" that credit cards are a no-no, and the poor guy was working on such tight margins, that cash would be preferred. So I whipped out my bankroll and peeled some greenbacks off onto the counter. Am I wrong to second guess the credit card signs that were on the door?

Cladiator · August 22, 2006 5:55AM

If they take credit cards then they take credit cards. Plain and simple.

JJM · August 22, 2006 5:56AM

<< If they take credit cards then they take credit cards. Plain and simple. >>

agree

slipgate · August 22, 2006 5:57AM

A store that takes cards pay a smaller fee than say paypal. A friend of mine that owned a jewelry shop said he only was charged around 2% from MC/Visa.

Small Margins?

partagas · August 22, 2006 5:59AM

My favorite dealer takes credit cards. But I will always pay with cash. He has to charge less mark up to make a profit from me. We both win.

BillJones · August 22, 2006 6:01AM

They should take credit cards for RETAIL sales, but I would not blame them a bit if they hesitated on wholesale business. Ditto if you noegociate a close deal on gold bullion or circulated common date $20 gold coins. Credit card companies take 3% or more, and when you are working close that seemingly small amount makes a difference.

ziggy29 · August 22, 2006 6:02AM

Not necessarily. If I simply pay the asking price without much haggling, I don't feel bad about using a credit card.

But if one is going to haggle and wheedle the dealer down to his/her absolute lowest, rock-bottom price that significantly cuts their profit margin, it's bad form to use plastic, IMO.

PerryHall · August 22, 2006 6:04AM

Longacre---You aren't getting paranoid are you?

Steve27 · August 22, 2006 6:22AM

"...and the poor guy was working on such tight margins..."

Bwahahahahahahahahahaha!!!!!!!!!!!!!!!!!!

291fifth · August 22, 2006 6:27AM

If he accepts credit cards he should accept credit cards. That said, I'll bet he really doesn't want to take them for coins. Does he also deal in other, high margin products?

ChangeInHistory · August 22, 2006 6:41AM

I wouldn't haggle too much (if at all) on the price if I knew I was going to use a credit card. I know---- if they take credit cards, they take credit cards. Period. Knowing what we as collectors know, how thin some margins are, I think it's a common courtesy to not zing them with the extra 2-3%. It can help build a good coin relationship for the future as well.

Longacre · August 22, 2006 6:45AM

<< If he accepts credit cards he should accept credit cards. That said, I'll bet he really doesn't want to take them for coins. Does he also deal in other, high margin products? >>

It is just your typical, small shop to my knowledge.

Myqqy · August 22, 2006 6:46AM

If you feel bad about using the plastic, you could just offer to add 3% to the bill.....

Barry · August 22, 2006 6:51AM

<< If they take credit cards then they take credit cards. Plain and simple. >>

Agreed. In my office, I have people paying their $5 HMO copays with a credit card.

VTCoins · August 22, 2006 6:52AM

I had a customer come in the other day and buy a Mexican 50 Pesos. I said $775 cash or $800 with credit card.

He understood that the cc fees would have ate up a majority of my profit.

WTCG · August 22, 2006 6:52AM

In dealer to dealer transactions, credit cards are never used while cash or checks are the typical payment of choice. Most of the major auction companies will accept credit cards for payment from collectors, but will not accept them from dealers.

On the other hand, unless you are a dealer, if the store says they accept credit cards for payment then they should honor them with open arms regardless of the amount charged unless there is a sign somewhere that states a minimum purchase amount is required for credit card purchases.

Furthermore, pulling out plastic after haggling over prices won't exactly make you friends with the shop owner. Cash or check is essential if you plan on negotiating on prices.

Longacre · August 22, 2006 6:57AM

<< In my office, I have people paying their $5 HMO copays with a credit card. >>

I do the same thing!

Barry · August 22, 2006 7:03AM

I do the same thing!

Why does that not surprise me?

Longacre · August 22, 2006 7:14AM

<< I do the same thing!

Why does that not surprise me?

>>

You docs can afford the 3%.

WTCG · August 22, 2006 7:24AM

I usually roll my eyes in disgust when I see people in front of me in line at the supermarket checkout stand use their credit cards for purchases under $10. It's worse when their credit cards get declined, which happens fairly frequently. I personally do not believe in using a credit card for grocery purchases or for any balance under $50.

ER · August 22, 2006 7:31AM

<< 

<< If they take credit cards then they take credit cards. Plain and simple. >>

agree >>

Zackly! You're kidding, right, Longacre? You use credit card to buy a pack of gum, and here you are having an ulcer about using a credit card at a coin shop?

kranky · August 22, 2006 7:31AM

<< 

<< If they take credit cards then they take credit cards. Plain and simple. >>

Agreed. In my office, I have people paying their $5 HMO copays with a credit card. >>

I do the same thing but there's a good reason. Our company "flexible benefits" plan lets us use pre-tax money to pay for medical expenses up to a yearly limit we choose. Then they give us a credit card to use solely for those expenses. If I don't use the card, I have to fill out a bunch of paperwork and wait for reimbursement.

AgMe · August 22, 2006 7:33AM

I use CC's for all purchases, because I hate change (ironic, isn't it?

), BUT I always pay cash when buying a coin...

Hence the phrase "bring 3 bricks"...

Barry · August 22, 2006 7:35AM

You docs can afford the 3%

Maybe we should start charging for faxes like you guys!

BTW, mine is 2.2% (higher for Rewards and Corporate MC/Visa) + 20 cents per transaction. It's the 20 cents that's the bad part for small transactions.

RYK · August 22, 2006 8:27AM

I use credit cards exclusively when i am dealing with larger companies (Home Depots, supermarkets, etc.). Yes, Wei, I will buy a gallon of milk at Whole Foods with a credit card.

When I am dealing with a party that I have a personal relationship, be it the coin dealer, the dry cleaner, or the dentist, I always pay by check.

If I take my dog to Petsmart for grooming: credit card. If I take her to the local family owned place: check.
Legend, Pinnacle, and other independent coin dealers: check. Heritage: always credit card.

MikeKing · August 22, 2006 8:37AM

I use a credit card for everything I can. Especially since I get cash back.
If I buy from a coin dealer and he/she gives me an appropriate price reduction (preferably without my having to ask), I'll pay in cash, as a courtesy.

Sometimes I don't have the cash around to pay for a coin, and if the dealer takes credit cards and there is NO price reduction offered or asked for, I have no qualms about using the card.

What pisses me off is when a dealer who accepts credit cards and blah blah blah, won't come down in the price for a coin, knowing that I'm going to pay in cash. What does that tell you?

mgoodm3 · August 22, 2006 8:44AM

I pay cash or checks for coins. It doesn't make a lot of difference for me, and it saves the dealer money. I try to support the small businesses that I deal with regularly.

carl · August 22, 2006 8:46AM

Depends on several things. I've had many dealers tell me if I pay cash they would automatically reduce the price a lot more than with a check or credit card. I've had dealers tell me they really don't like credit cards due to tracability. I actually had coin dealers tell me it's either cash or no sale. If you live in a high crime area you don't want to use a credit card with someone you don't know. Many coin dealers I know don't even want to give thier real names out. As kind of this trustworthyness, look at how everyone here uses a sort of handle instead of thier name. Check out the personal info and notice how few will even give the state they live in. Note how many coin web sites use little personal information. Guess I just don't trust to many. But if it is in a coin, hobby type store, possibly a lot safer.

Jcarney · August 22, 2006 8:48AM

<< I usually roll my eyes in disgust when I see people in front of me in line at the supermarket checkout stand use their credit cards for purchases under $10. >>

Are you sure they're credit cards? Many folks use Visa (or MC) debit cards now.

Frankcoins · August 22, 2006 8:52AM

With normal retail sales, the markup will cover the cost of credit cards. On wholesale transactions, the 2.5%
typical credit card charge is more than the dealer's profit.

100proof1957 · August 22, 2006 8:56AM

VT,

you cant charge extra for using a CC !

you CAN discount for cash !

" how much is that coin ?
that one is 800.00 but today i could do it for 775.00 cash "

thats legal.

Whizzard · August 22, 2006 8:59AM

Certainly would've been appreciated to use cash for a wholesale transaction.

However its my understanding that its ALWAYS against the MC/Visa use policy for refuse to take a card for a purchase under an arbitrary amount. In fact to get around this threat once (at a dry cleaner when I had no cash on me), I told them that if they didn't take the card I'd call Visa and report them on the spot.

They took the card.

WTCG · August 22, 2006 4:14PM

<< 

<< I usually roll my eyes in disgust when I see people in front of me in line at the supermarket checkout stand use their credit cards for purchases under $10. >>

Are you sure they're credit cards? Many folks use Visa (or MC) debit cards now. >>

Credit cards, debit cards, whatever. I still disagree with people using plastic to pay for groceries or for totals under $50.

RYK...I'm glad we don't visit the same Whole Foods Market since I would be mumbling some disparaging comments if I was in line behind you.

Bruceswar · August 22, 2006 4:25PM

Owning(My Family) a small business for years I am always glad to see the greenbacks. CC's eat into profits but they are a must have. So in that sense I try not to use mine as much as possible. The Points are not always the same for each vendor. Some pay as high as 8% for the use of them.

rec78 · August 22, 2006 4:38PM

What pisses me off is when a dealer who accepts credit cards and blah blah blah, won't come down in the price for a coin, knowing that I'm going to pay in cash. What does that tell you?
It tells me to use the credit card.

I think that i have used a credit card only once or twice for coins, and then i did not expect the dealer to discount. On the other hand if i can dicker to what i see as a favorable price i try to pay cash first or by check if i don't have enough cash but never by credit card on a discounted coin. Bob

kranky · August 22, 2006 9:02PM

This is always good for getting a rise out of a seller.

kranky: OK, I'll take it. Will you take a check?
Seller: Sure.
kranky: Does it have to be good?

SmallTownCoins · August 23, 2006 2:56AM

I guess my local collector's are trained pretty well,
Now they just get what they need and tell me the discount price for cash... Hahahaaaa

I think most retailer's have stuff priced for credit card purchaser's, and will gladly discount for cash or check...

tmot99 · August 23, 2006 3:05AM

My dealer doesn't mind me using plastic. They prefer a debit charge rather than credit because they don't get charged as much.

stman · August 23, 2006 6:28AM

There are many on-line venues that say they take credit cards. Call some of them up and when you're ready to pay some will absolutely flip.
I generally get my stuff sent on approval. There is one "Major" guy that I mentioned way back he might want to send this way. He never offered, so I never brought it up again. A couple of times he gave a grunt when I said I'll give ya my card number. He's never discounted the price, so I'm gonna do what works easy for me. It's just a visa debit card, but they get charged the fees anyway.

Last purchase I told him I feel bad using a card even though it's factored into his price. I mentioned he might want to just send me the darn thing.

He did, I sent check same day as I always try and do. No discount though. Heh

majorbigtime · August 23, 2006 11:25AM

Heritage takes credit cards up to $10K.

That gives you extra time to pay and air miles to boot!

Frankcoins · August 23, 2006 12:52PM

<< Owning(My Family) a small business for years I am always glad to see the greenbacks. CC's eat into profits but they are a must have. So in that sense I try not to use mine as much as possible. The Points are not always the same for each vendor. Some pay as high as 8% for the use of them. >>

My American Express card from costco gives a 3% rebate on restaurants, and I understand the restaurant
is charged 6 or 7%. A restaurant I used to go to (they went out of business) used to make up excuses NOT
to accept my American Express card (Our American Express card reader is broken...)

Cockney · August 23, 2006 12:57PM

Yeah if they catch you offering a lower price for cash as opposed to the card, they take away your ability to accept the card at all......

Coppernicus · August 23, 2006 1:02PM

I always try to pay cash and tell the dealer, "I don't need a receipt." Sales tax here in Wisconsin is 5.55% and if I can avoid paying it, and the dealer has cash with no record of the transaction, it works for me. The state gets plenty from me anyway, like the $2,310 I paid last week on my new car - for what I ask? You should know that I'm in the top state income tax bracket so that's about 7.5% of my gross income. I won't even mention the state's gasoline tax, property tax, etc.,,etc.,,etc.

Mike

mr3holesinone · August 24, 2006 3:57AM

mr3holesinone · August 24, 2006 4:03AM

I was the controller for a local restaurant and our credit card fees were about 1.8% for MC/Visa/Discover and 3% for American Express. Transaction fees were about .08 per transaction. Business cards and other non-qualified charges were about 1% higher also. Anyone paying 6% must have credit issues or some other kind of problems...

Personally I'll pay with checks or credit card for purchases. For bullion purchases (all local) those are usually paid with cash.

If a dealer accepts credit cards, is there an unwritten rule that you should not use them?

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