Do coin dealers who accept credit cards build that into the list price of their coins?

RYK · November 18, 2010 7:20AM

That is, have you ever noticed that when you pay by check, you tend to get 3% off from them.

Collectors/dealers, including those who take credit card and pay by check/credit card, please feel free to respond.

STONE · November 18, 2010 7:25AM

I bet it is the same if they accept PayPal.

Convenience costs, and dealers probably don't want to lose money to the credit card companies

Russ · November 18, 2010 7:26AM

Probably depends on their margins. A bullion dealer is more likely to factor it in then a high end rare coin dealer. I consider it on some of the stuff I sell, on other stuff the profit is so obscene I don't worry about it.

Russ, NCNE

JRocco · November 18, 2010 7:52AM

As an ex-retail owner I always looked at it as a cost of doing business.
It was factored in.

Batman23 · November 18, 2010 8:00AM

I have been in an old timers shop where he lists the price on the front of the slabs. This is for the credit card buyers. Then if you flip the slab over you will see a lower price. This is for the cash buyers.

PerryHall · November 18, 2010 8:04AM

I've had dealers quote me two different prices on a coin---one for credit card payment and one for cash/check payment.

seemyauction · November 18, 2010 8:09AM

Circumventing credit card fees is a violation of a federal regulation.........................

RYK · November 18, 2010 8:10AM

<< Circumventing credit card fees is a violation of a federal regulation......................... >>

Are you going to make a citizen's arrest?

mrpotatoheadd · November 18, 2010 8:21AM

<< Circumventing credit card fees is a violation of a federal regulation......................... >>

Unless a new law has been passed, there is nothing at all illegal about offering a discount for payment by cash or check.

PerryHall · November 18, 2010 8:23AM

<< Circumventing credit card fees is a violation of a federal regulation......................... >>

It's a violation of the merchant credit card agreement but I doubt it's a violation any federal regulation. Can you provide a link to this regulation?

mrpotatoheadd · November 18, 2010 8:28AM

From FindLaw:

15 U.S.C. § 1666f : US Code - Section 1666F: Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts

(a) Cash discounts
With respect to credit card which may be used for extensions of
credit in sales transactions in which the seller is a person other
than the card issuer, the card issuer may not, by contract, or
otherwise, prohibit any such seller from offering a discount to a
cardholder to induce the cardholder to pay by cash, check, or
similar means rather than use a credit card.

ianrussell · November 18, 2010 8:28AM

<< 

<< Circumventing credit card fees is a violation of a federal regulation......................... >>

Unless a new law has been passed, there is nothing at all illegal about offering a discount for payment by cash or check. >>

I believe it's against the merchant account rules to charge extra to the buyer if they pay by credit card. Though depending upon the merchant account rules, it's sometimes not a conflict to offer a discount if they pay by check.

For bullion sales, I work on smaller margins than 2.5%, so there is no way I could accept credit cards on these transactions.

- Ian

Justacommeman · November 18, 2010 8:31AM

Ever notice that you don't see RYK and Longacre on line at the same time anymore? hmmmm. Coincidence? I think not. I'm worried about Robert.

MJ

RYK · November 18, 2010 8:34AM

<< Ever notice that you don't see RYK and Longacre on line at the same time anymore? hmmmm. Coincidence? I think not. I'm worried about Robert.

MJ >>

Longacre is on vacation from his previous vacation. I am just filling in.

Justacommeman · November 18, 2010 8:39AM

<< 

<< Ever notice that you don't see RYK and Longacre on line at the same time anymore? hmmmm. Coincidence? I think not. I'm worried about Robert.

MJ >>

Longacre is on vacation from his previous vacation. I am just filling in.

>>

You are filling in admirably and making him obsolete while using a lot less words

MJ

Greeniejr · November 18, 2010 8:46AM

For normal U.S. coins we assume that the person will be using a CC and price it accordingly. If a person uses cash or a check, there is often a bit of flexibility. That is to say however, that if we price a coin specially to a customer who has established a reputation of paying cash or check, the price reflects that. With bullion we quote our cash discount price. If you pay with a CC you pay the full price.

Coinosaurus · November 18, 2010 9:37AM

<< Ever notice that you don't see RYK and Longacre on line at the same time anymore? hmmmm. Coincidence? I think not. I'm worried about Robert. >>

I did see them together at one place once, but my glasses were making my vision kinda fuzzy.....

mrpotatoheadd · November 18, 2010 9:42AM

<< 

<< Unless a new law has been passed, there is nothing at all illegal about offering a discount for payment by cash or check. >>

I believe it's against the merchant account rules to charge extra to the buyer if they pay by credit card. >>

According to the US Code, merchants are not allowed to have such a rule in their contracts:

"... the card issuer may not, by contract, or otherwise, prohibit any such seller from offering a discount ..."

Frankcoins · November 18, 2010 9:46AM

<< Circumventing credit card fees is a violation of a federal regulation......................... >>

It is legal to offer a lower price for cash.

johnny9434 · November 19, 2010 3:24AM

why not give the discount. if it works then do it

BillJones · November 19, 2010 3:48AM

Given the margins I got when I was dealer, you bet the credit card charges changed things. Once I had a guy give me a counteroffer on my initial price. When he told that he was paying with a credit card on the counteroffer, I passed. He didn’t see to know that a check and credit card payment are not the same thing.

joebb21 · November 19, 2010 4:14AM

I dont understand what that means being illegal to offer a discount if the buyer pays cash...

I always figure the shipping price in when I list a coin but would many times take off the shipping fee if the dealer picks the coin up from me or I bring it to them...

Its my store! I can charge whomever I want WHATEVER I want. How can that be illegal?

I want $100 for my coin (or any product for that matter). If you want to pay by credit card (or paypal for that matter) I will charge you the fees that I lose in order to make sure I get my $100

I dont have to sell you my coins. If you dont have the currency I accept (cash) I wont sell you the coin. If you want to make a trade of your cc payment Im just charging the inconvenience fee.

Im not even making sense anymore. The whole concept seems ridiculous. Please somebody explain what Im missing

BillJones · November 19, 2010 5:49AM

If it's illegal to charge more because someone is using a credit card, then a lot of gas stations are breaking the law.

rbf · November 19, 2010 9:24AM

<< I dont understand what that means being illegal to offer a discount if the buyer pays cash...

I always figure the shipping price in when I list a coin but would many times take off the shipping fee if the dealer picks the coin up from me or I bring it to them...

Its my store! I can charge whomever I want WHATEVER I want. How can that be illegal?

I want $100 for my coin (or any product for that matter). If you want to pay by credit card (or paypal for that matter) I will charge you the fees that I lose in order to make sure I get my $100

I dont have to sell you my coins. If you dont have the currency I accept (cash) I wont sell you the coin. If you want to make a trade of your cc payment Im just charging the inconvenience fee.

Im not even making sense anymore. The whole concept seems ridiculous. Please somebody explain what Im missing >>

It's not that complicated. If you want $100 for your coin, then your "regular" price needs to be marked up accordingly. For instance, if your CC processor/PayPal fee is 3%, then you'd need to price your coin at $103.00. Then, if you wanted to offer a discount price to your cash/check-paying customers, that would be perfectly fine and legal. What you're NOT allowed to do is the other way around... i.e., advertise the coin at the lower price and then jack up the price for different (non-cash) methods of payment. In other words, it's OK to reward the customer with a discount for using a preferred method of payment, but it's NOT OK to penalize the customer with a fee for using a non-preferred method of payment.

habaraca · November 19, 2010 9:31AM

I understand Longacre did leave a list of questions RYK is supposed to ask at timely intervals.

On which RYK was amiss during LA's last vacation.

mrpotatoheadd · November 19, 2010 10:32AM

<< If it's illegal to charge more because someone is using a credit card, then a lot of gas stations are breaking the law. >>

It's not illegal to offer a discount for payment by cash. I would guess that's what those gas stations are doing.

Do coin dealers who accept credit cards build that into the list price of their coins?

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