Shops charging 1 or 2% for using visa machine in the store

[Berkshire]

1 hour ago, fak119 said:

Strange view of business practices you have...

Merchants, restaurants, etc. accept credit cards, because:

1) The customer often buys/consumes more or more expensive goods  and

2) Will come back if good service is rendered

3) No-Cash means less risk

 

A store that cannot calculate the possible fee for credit card transactions will soon be out of business...

What the "fak" are you on about?  The OP asked a question and I answered it.  He didn't ask about the advantages of taking credit cards, but rather how I'd feel about it as a customer being charged a fee.  We are talking about Thailand.  And in Thailand, I use cash almost exclusively.  The few times that I have used my credit card, I was not charged an extra fee (large purchases).  But if I was in his store and wanted to purchase something with a credit card, a 1% fee would not be a deal breaker.  Perhaps for you, but not for me.  It's a matter of opinion.   

[suzannegoh]

What this is driven by is banks wanting to be able to offer their own exchange rate versus having to use the card-network (Visa, Mastercard, AmEx, etc) rate.   And typically govt regulators/competition agencies have supported this from a "pure competition" standpoint; not from a standpoint of will it actually result in lower costs to the consumer.   Competition does not always mean lower costs to the consumer.
 
It varies from country to country as to if DCC is allowed.  Visa, Mastercard, etc., have resisted it wherever and whenever they can but have been slowly loosing the battle to the banksters and certain govt agencies who want to be able to use DCC whenever and when ever they like.
 
Here's a link talking Visa to allow DCC worldwide
https://www.finextra.com/pressarticle/75645/visa-to-allow-dynamic-currency-conversion-at-atms-worldwide
 
Now banks who can or support DCC "spin" DCC as a great thing for the consumer as there is exchange rate competition, allows more flexibility in fees, etc...just "spin" that misleads the customer....trying to make the customer think it's good for the customer which it's not "unless the bank offers a higher exchange rate than the card-network."   
 
As anyone knows from a DCC transaction hitting their account even if their card-issuing bank does not charge a foreign transaction fee the DCC rate is usually around 3% lower than the card-network rate.  I'm still waiting for anyone to identify a DCC exchange rate that is better than the card-network rate.
 
And just because a DCC transaction occurs where the merchant charges you in your card's currency (i.e., USD, GBP, EUR, etc), that does not mean your card-issuing bank will not also charge you whatever foreign currency transaction fee they may apply.  It's like getting charged twice.  Some people think if they accept a DCC then that means their card-issuing bank will not charge a foreign transaction fee.....that thinking is sometimes dead wrong as many banks still apply their foreign transaction fee simply because it was a foreign transaction in whatever currency.  This policy depends on the card-issuing bank.
 
For example, Bank of America offers a dizzying array of cards with different fee structures.  Some cards do not charge a foreign transaction fee; others do.  But for the ones that do, below is a cut and paste from their fee schedule....notice the foreign transaction fee is applied whether the charge is made in foreign currency (e.g., Thai baht) or DCC was used generating a USD charge.   Bottom line if the transaction occurred in a foreign countries, regardless of whether it was a DCC tansaction or not, BoA will charge a foreign transaction fee on some of their cards.
 
 • Foreign Transaction 3% of the U.S. dollar amount of each transaction (1) made in a foreign currency, or (2) made in U.S. dollars if the transaction is made or processed outside of the United States. This fee will be in addition to any other applicable fee.  
 
 
 
 
 

At some point it will either draw objections from regulators or result in a class action suit. It's too transparently bogus to say that it's a consumers choice when the only way that you can get the consumer to make that choice is to deceive him. If that's a consumer choice, so is buying penny stocks from boilerroom operators.

[4MyEgo]

1 hour ago, alex8912 said:

Without a doubt he losses many sales for this practice AND he has negative reviews and he can’t ever know how many customers do not visit because of this. Your average Western customer under 35 ish carriers no cash on them ( in the West especially in their own country) and they are not going to run to an ATM. This cash only option is stupid. 

Stupid are those to bend to the powers of the banks and pay fees for everything they purchase with cards.

 

Have you never heard the saying; Cash is King, the cash only option is far from stupid, especially in Thailand as it is a cash society with most not having a credit card, and last time I checked we were in the southeast.

 

[HooHaa]

reverse psychology, offer a 2 percent discount for cash payments. have original price include markup for credit cards.

[NoshowJones]

Visa machine?? I take it you mean ATM. The only ATM I will ever use is one at a bank, then if anything goes wrong you can just go in to the bank and hopefully, get it fixed.

[NoshowJones]

On 11/27/2018 at 12:18 PM, CharlieH said:

"CC payments not only charge the fee, you also have the chargeback risk."

 

Which begs another question, why is it some stores/services etc in Thailand will only accept a credit card (fees and chargeback) but WONT accept a debit card ? Why is that ? anyone know ?

I would also like to see posters opinion on this Charlie, but I also have to say, I can't ever remember my Bangkok Bank debit card ever been refused.

[dash]

but WONT accept a debit card ? Why is that ? anyone know ?

 

because this cardterminal has no connection to the issuing bancing institution to take the amount from the account or make a reservation

[natway09]

I would go to another shop if they suggested an extra fee on top.

They want a "cashless" society so they can keep tabs on what we are spending but I am not

paying extra for it.

Interestingly enough I use my credit card for fuel at Esso & get 1% off my bill & 2 bottles of water.

If I pay cash I get nothing...... Work that one out ?

[dash]

If I pay cash I get nothing...... Work that one out ?

 

your specific creditcard uses your dates to make money when selling the dates to a buyer.

Edited November 28, 2018 by dash

[watcharacters]

21 hours ago, robblok said:

I am of the opinion most Europeans understand but Americans don't as credit card use is so prevalent there.

 

True that,  along with lots of benefits for those CC holders  who manage their spending wisely.

 

Never OVERSPEND..

 

[moana]

6 hours ago, suzannegoh said:

Are there any scenarios under which DCC is beneficial to the customer?

Yes, but not for US-based cards.

 

US-based cards charge a "foreign transaction fee" (usually 0-3 %), a fee that occurs when the payment is processed outside of the US, regardless of currency. In that case any added cost from DCC is just jacking up the price further.

 

However, in many other countries the fee is a "currency conversion fee" (usually 2-3 %), which means that when DCC occurs the card fee goes away. In that case, if your card issuer charges a higher fee than the DCC fee, you win by DCCing (by a tiny fraction at best).

[Pib]

5 hours ago, suzannegoh said:

At some point it will either draw objections from regulators or result in a class action suit. It's too transparently bogus to say that it's a consumers choice when the only way that you can get the consumer to make that choice is to deceive him. If that's a consumer choice, so is buying penny stocks from boilerroom operators.

 

Naw...there will not be any class action suit as DCC is already widely used....Visa's decision just expands it.  

 

And the "spin" banksters types have used in press releases just makes my blood boil in how how they spin words to make it sound like consumers are begging for DCC and how it helps them better understand the charge to hit their account. 

 

The only consumers that would be begging for a fee---an DCC is nothing more than a fee--are those consumers which are clueless about fees....easy herded along by banksters.   

 

Take a look at below article form the "National ATM Council".....fancy name for banksters which operate ATMs.   The spin in this article makes DCC sound like pie and ice cream.

 

https://www.prnewswire.com/news-releases/consumers-and-us-atm-industry-petition-visa-to-lift-ban-on-dynamic-currency-conversion-services-300603421.html

 

Quote

 

Consumers and U.S. ATM Industry Petition VISA to Lift Ban on Dynamic Currency Conversion Services

---

NEWS PROVIDED BY

The National ATM Council, Inc. 

Feb 23, 2018, 12:44 ET

 

JACKSONVILLE, Fla., Feb. 23, 2018 /PRNewswire/ -- A public petition on behalf of consumers and the U.S. ATM industry (the "Petition"), has been formally submitted to VISA by The National ATM Council, Inc.  ("NAC"), seeking elimination of current network rules prohibiting Dynamic Currency Conversion ("DCC") services for international VISA cardholders using ATMs in the U.S.

 

Along with a final tally of the many hundreds of ATM consumers and company representatives signing onto the Petition, NAC has provided VISA with strong supporting data showing how well accepted DCC services are today for Mastercard transactions at U.S. ATMs (Mastercard presently allows DCC), and for VISA card transactions in other countries where VISA allows DCC today. The information provided to VISA also demonstrates the presence of solid 'repeat' business for DCC services on the part of consumers, with a significant percentage of cardholders using DCC services repeatedly where DCC is permitted.

 

"DCC services provide the transparency and real-time information needed by consumers from abroad to better understand their cash withdrawals from U.S. ATMs in terms of the cardholder's home currency," said Bruce Renard, Executive Director for NAC. "Importantly, with DCC, the cardholder is given this consumer-friendly information, along with an opportunity to opt out of the transaction once the currency conversion information has been provided."

 

The public Petition seeking VISA's authorization for DCC services at U.S. ATMs has received the endorsement of large numbers of consumers of DCC services here in the U.S. and abroad, as well as the support of many hundreds of companies, collectively representing many thousands of individuals and a significant portion of America's ATM industry.

 

"We believe the information presented to VISA makes a compelling case for the company to modify its network rules and allow provision of DCC services for international VISA cardholders using ATMs in the U.S.," said NAC Chair and Access One CEO George Sarantopoulos. "There is no good reason to withhold these services any longer, from either a consumer or industry perspective, and we are hopeful that VISA will embrace this request and grant our petition on an expedited basis."

 

The Petition asks VISA to authorize the provision of DCC services on VISA transactions at U.S. ATMs, effective April 1, 2018.

 

SOURCE The National ATM Council, Inc.

 

 

[Bangkok Barry]

On 11/27/2018 at 11:23 AM, thonglorjimmy said:

, I think that is some countries doing so is forbidden by law and in most countries Visa/Mastercard don't allow it.

 

I think you're right. But then, Visa and Mastercard as the others are not going to block a country from using their cards because their governments ignore the law.

[Bangkok Barry]

On 11/27/2018 at 12:00 PM, simoh1490 said:

+1 Reminds me of being in the UK earlier this year and buying plane ticket to Thailand with BA. When the right flight, time and seat had been sorted I was asked if I wanted to take any luggage with me 'cos if so it would cost a further £47 AND a further £47 if I wanted to bring it back on the return flight! I vowed to my god at that moment that I would never fly with BA ever again, again!!

 

Many, many airlines operate that policy. They quote a minimum fare which is all some need to pay (ie no luggage), and fees are added for bags, choosing a seat etc. Emirates do, and the budget airlines do. It's common policy.
I'd be interested to know who you booked with as an alternative, and how competitive the fare was with the (hidden, rather up-front) add-ons included.

[simoh1490]

5 minutes ago, Bangkok Barry said:

 

Many, many airlines operate that policy. They quote a minimum fare which is all some need to pay (ie no luggage), and fees are added for bags, choosing a seat etc. Emirates do, and the budget airlines do. It's common policy.
I'd be interested to know who you booked with as an alternative, and how competitive the fare was with the (hidden, rather up-front) add-ons included.

Prior to that flight I had always booked my flights online from Thailand using Momomdo and I'd never run into that scenario before, even my outbound flight in July was booked (from Thailand) that way with Thai and it was a straight forward booking with no add ons - Ethihad, Thai. and Emirate flights previously, booked online from Thailand were all without add-ons. So it came as a shock to book my first flight from within the UK to fly LHR/BKK and to experience flight costs that I thought were ridiculously high, plus all the add ons - one way on BA was quoted at £1,400, seven weeks in advance and using an independent agent, round trip was much better at £710 which was £600 plus $45 each way for baggage....as it turns out I bought that flight return because my wife was booked on it although I didn't really want to buy a return. 

[alex8912]

6 hours ago, 4MyEgo said:

Stupid are those to bend to the powers of the banks and pay fees for everything they purchase with cards.

 

Have you never heard the saying; Cash is King, the cash only option is far from stupid, especially in Thailand as it is a cash society with most not having a credit card, and last time I checked we were in the southeast.

 

I must have completely misread your post. I thought your friends business was in AUS. That is where most 20 something’s and 30 something’s don’t carry cash and don’t go to cash only establishments. Most people I know often don’t have a balance on their credit cards and have no annual fee. Debit cards don’t have these fees and come right out of your balance like cash. The term cash is king is from the 20 th century now we are in the 21 st century.  Ask the next few younger people you meet from Sydney, for example , how often they use plastic debit or credit cards when out eating and drinking. You may wake up to 2018. 

[Pib]

But "Cash is King" sure sounds neat to say.  I think it's neat to watch people dig thru their wallet for cash, hand it to the cashier, the cashier counts it  a few times, puts it in the cash register, provides some change, the customer counts it, and then stuffs it in his wallet.  A nice few minutes of of 20th century in action.  And of course this drives the need to periodically transfer money into Thailand with associated fees to replenish your Cash is King bank account.

 

Me use credit cards as much as possible here in Thailand...probably around 75% of my spending is via credit card.  I have several no foreign transaction fee U.S. credit cards...no annual fee....they pay 1.5% cash back on every purchase...and I pay the bills in full each month.

 

I hand me credit card to the cashier, he inserts it into the POS, if the amount is less that Bt1500 I don't have to sign anything, the teller hands me the card and receipt....done.  If over Bt1500 I sign a receipt for signature...I then get a the card back and a receipt....done.  Much faster that the 20th century handing back and forth of cash.

 

 

 

 

[suzannegoh]

1 hour ago, Pib said:

 

Naw...there will not be any class action suit as DCC is already widely used....Visa's decision just expands it.  

 

And the "spin" banksters types have used in press releases just makes my blood boil in how how they spin words to make it sound like consumers are begging for DCC and how it helps them better understand the charge to hit their account. 

 

The only consumers that would be begging for a fee---an DCC is nothing more than a fee--are those consumers which are clueless about fees....easy herded along by banksters.   

 

Take a look at below article form the "National ATM Council".....fancy name for banksters which operate ATMs.   The spin in this article makes DCC sound like pie and ice cream.

 

https://www.prnewswire.com/news-releases/consumers-and-us-atm-industry-petition-visa-to-lift-ban-on-dynamic-currency-conversion-services-300603421.html

 

 

We’re not in disagreement about what is right or wrong in the case of DCC.  It might not be known precisely what Visa’s exchange rate would be on a pending transaction but you could come up with a pretty good estimate of the rate based upon the rate from the day before.  Visa has a web page that tells you those rates and machines could easily be programmed to calculate how much you’d be losing because of DCC and print it on the receipt.  If they did that then maybe there would be possible to argue that consumers were being given a choice.  Though possibly there are jurisdiction issues impeding a law to require that.  If a Thai bank imposes DCC on your US issued card and that’s not illegal in Thailand, could the US do anything about it?
 

Not sure this belongs in the present thread though.  The OP was talking about a merchant imposed surcharge not DCC.

Edited November 28, 2018 by suzannegoh

[Chou Anou]

Any merchant charging an extra fee for customers using a credit card would lose my business instantly. That's the lowest of the low. Paying the card processing fees you have to pay (as a merchant) is part of the cost of doing business, deal with it. And I'm a(n online) merchant myself--I have no problem paying Paypal 3.5% so I can accept credit cards through them. As others have noted, this is the 21st Century, not the 20th. Cash is dead. Not quite as dead yet in Thailand as it is in the West, but (thankfully) that's coming.

[ajarnmarc]

For me it is the cost of doing business. 

At the end of the day it is the banks that are taking advantage of the businesses.

In this day and age, handling of cash is way over rated, 

dirty, and always with the risk of obtaining counterfeit currency.

 

When you find a company that takes more interest in the cost of the transaction, 

than on the sale, you know they will certainly care about returns as well...

 

Which means you will be stuck out if anything goes wrong with your purchase, 

no matter how you paid for it. The company only cares about their bottom line, 

and nothing for service or convenience to the customer.

When I hear a cashier trying to access 1 or 3% onto my purchase for me paying electronically, 

I think who is it here that's making money?

 

If the company cares about this percent, then why should I not too?

I come to purchase, not be shaken down for my choice of how I prefer to pay.

With cash it is always flashed back upon me, as I'm pushed aside to assume that my change was  given correctly, yet the cashier had to count it not once, no, not twice, no, but three times, as though to prove they didn't trust I gave them the correct amount, but with the return change, we are always expected to take the money and stuff it in our wallet, purse and move our ass out from in front of the cash register, even if there are no customers waiting.

Never have that issue with CC payment.

 

 

[5633572526]

I don’t go to places that charge additional fees so you may get me once but you have lost my business forever.

[direction BANGKOK]

13 hours ago, Pib said:

But "Cash is King" sure sounds neat to say.  I think it's neat to watch people dig thru their wallet for cash, hand it to the cashier, the cashier counts it  a few times, puts it in the cash register, provides some change, the customer counts it, and then stuffs it in his wallet.  A nice few minutes of of 20th century in action.  And of course this drives the need to periodically transfer money into Thailand with associated fees to replenish your Cash is King bank account.

 

Me use credit cards as much as possible here in Thailand...probably around 75% of my spending is via credit card.  I have several no foreign transaction fee U.S. credit cards...no annual fee....they pay 1.5% cash back on every purchase...and I pay the bills in full each month.

 

I hand me credit card to the cashier, he inserts it into the POS, if the amount is less that Bt1500 I don't have to sign anything, the teller hands me the card and receipt....done.  If over Bt1500 I sign a receipt for signature...I then get a the card back and a receipt....done.  Much faster that the 20th century handing back and forth of cash.

 

 

 

 

I appreciate your post, and can see the value in credit card transactions.

 

I am the opposite, for many reasons. 

1) I do not like to contribute to the bankers amassing their fortunes. It is scary to think every single cc transaction a piece goes to these bankers.

2) Civilizations were born with people interacting without a single other entity being involved, and I believe we should do our best to go back to doing business this way. Two people making a transaction, and that is the extent of it. Where can we find this today? Garage sales maybe, a craigslist transaction. That is it though, anything else and the government, or a credit card company gets involved in your business. In Thailand we find these interactions more prevalent, like street food for example. 

3) There are also many privacy issues with credit card usage, and it is going to get worse. Ads being flung at you based on purchase history etc.

 

I just do not want to be a part of all of that. I do not particularly care for bankers, I like living a private existence, and I like my interactions to be with the people I am doing business with face to face, and them alone, at least as often as I can. 

[4MyEgo]

14 hours ago, alex8912 said:

I must have completely misread your post. I thought your friends business was in AUS. That is where most 20 something’s and 30 something’s don’t carry cash and don’t go to cash only establishments. Most people I know often don’t have a balance on their credit cards and have no annual fee. Debit cards don’t have these fees and come right out of your balance like cash. The term cash is king is from the 20 th century now we are in the 21 st century.  Ask the next few younger people you meet from Sydney, for example , how often they use plastic debit or credit cards when out eating and drinking. You may wake up to 2018. 

https://www.finder.com.au/credit-cards/credit-card-statistics

 

Like I said, cash is King, and I will add, credit cards are a trap for the customer by charging (high interest rates & annual fees) and the businesses pay a % which comes off their profits, so the banks bend both the customer and the business proprietor over, as for debit cards, I am well aware there are no charges as this is the only type of card I use, plus cash.

 

As for the 20 and 30 year olds who are spending up big today on cards, well, their future is also cast in concrete isn't it.

 

 

[bbi1]

On 11/27/2018 at 11:23 AM, thonglorjimmy said:

I think that is some countries doing so is forbidden by law and in most countries Visa/Mastercard don't allow it.

 

I would of course pay the surcharge, but only once. 

 

On 11/27/2018 at 11:51 AM, simoh1490 said:

As I recall Visa doesn't allow retailers to charge customers for using their cards, even to the point of them being willing to refund any charges made, as long as the customer can provide an invoice to confirm the charge by the retailer (which no retailer will be provide because they know that Visa will give them a slap).

That's nice to know. When booking airline tickets in particular they add a surcharge for paying via credit card. This is easy to prove with a screenshot of the webpage showing this. I guess then we can all go to Visa/Mastercard and get a refund for this surcharge that merchants are ripping off from us at the checkout page! ????

[uwe_rayong]

12 hours ago, Chou Anou said:

Any merchant charging an extra fee for customers using a credit card would lose my business instantly. That's the lowest of the low. Paying the card processing fees you have to pay (as a merchant) is part of the cost of doing business, deal with it. And I'm a(n online) merchant myself--I have no problem paying Paypal 3.5% so I can accept credit cards through them. As others have noted, this is the 21st Century, not the 20th. Cash is dead. Not quite as dead yet in Thailand as it is in the West, but (thankfully) that's coming.

 

 

When you doing online business international there is no way of doing it without Paypal. All your prices have those 3.5% Paypal transaction fee included.
I started online business in Germany already in 2001.
By that time 80-90% of all EU buyers used direct bank transfer (which is free). So the majority of the buyer paid by bank transfer. So the prices calculated without Paypal transactions fee.

 

Now in 2018 in Germany 99% use Paypal for online shopping on ebay. So I included the transaction fee for Paypal in every  price. I also included the Ebay fees in the selling price. And if you accept Paypal there is a risk involved that even weeks or month after the transaction, the buyer wants his money back for some odd reason.

 

You are always running the risk that Paypal freeze your account for silly reasons but anyway, now it is too late. Paypal is one of the standard payment method. 

 

But if I have good customer I always offer him to order the items directly from me and pay via bank transfer.  Ebay cost me on average 14%-18%  (transaction fee, shop fee, promo fee, advertising fee etc),
Paypal also around 3.5% plus the risks involved. So I am happy to offer 20% discount to the buyer that order directly and pays through bank transfer.

So if you buy on ebay for 500 USD you can save yourself 100 bucks if you order directly. 

 

So in short to all the people that says Creditcards, Amazon, Ebay and Lazada are so comfortable and I love them. You the buyer pay for that.
Every business that don`t hit you with the Credit Card transaction fee has it already included in there sale price.
 

And every cash buyer is subsidise you preference for that method of payment.

 

 

In Thailand now times changing, in the past majority of the buyer preferred cash.
In a couple of years it will be same as in US or Europe - and all sales prices have the Credit card transaction fees already included in the sales price.

 

If Kasikorn or Homepro offers you a "a 0% - 10 month payment plan" - it is not free. You paid for it already in the sales price.

If a seller offers you an item with "free shipping" it is not free, the cost of shipping is already in the sales price included.

If you go to Sizzlers and they tell you, the Salad bar is free if you order a meal. It is not free, it is already in the meal price included.

 

If you don`t like to eat from the Salad bar and just eat your Steak & Fries, but  the table next to you is a Fat guy that already went 8 times for the salad bar.
Then it is you, among others, that subsidise the "free salad bar" for fat guy next to you.

 

  

 

 

 

 

 

 

 

[coops]

1 hour ago, direction BANGKOK said:

I appreciate your post, and can see the value in credit card transactions.

 

I am the opposite, for many reasons. 

 

3) There are also many privacy issues with credit card usage, and it is going to get worse. Ads being flung at you based on purchase history etc.

 

 

What privacy issues?

 

Your credit card doesn't include any email or other personal details to the shop.

I have occasionally had a shop ask me for my email address or even my phone number - I refuse or make one up if the cashier gets all worked up...

 

Online the same common sense applies about email - you should have at least two email addresses. One for people you trust and want to receive emails from, and another junk account precisely for online shopping, registering on online forums etc etc... and 'social media' if you must.

Edited November 29, 2018 by coops

[uwe_rayong]

14 minutes ago, coops said:

 

What privacy issues?

 

Your credit card doesn't include any email or other personal details to the shop.

I have occasionally had a shop ask me for my email address or even my phone number - I refuse or make one up if the cashier gets all worked up...

 

Online the same common sense applies about email - you should have at least two email addresses. One for people you trust and want to receive emails from, and another junk account precisely for online shopping, registering on online forums etc etc... and 'social media' if you must.

 

 

If you use Paypal the seller gets your Paypal email address with each payment and I would consider the Paypal registered email address as an important one.

So if you buy an item via ebay with a "junk address" or guest login and pay via Paypal, your Paypal registered address is also submitted to the buyer. 

 

If you use your credit card frequently your credit card company has a nice buyer profile of what and where you like to buy your stuff.
Same as those Customer Cards from Big C, Tesco etc.

 

Credit card companies sale those data to online advertisers for good money.

Mastercard, AmEx And Envestnet Profit From $400M Business Of Selling Transaction Data Source:


https://www.forbes.com/sites/petercohan/2018/07/22/mastercard-amex-and-envestnet-profit-from-400m-business-of-selling-transaction-data/#33db51027722
 

 

 

 

[Pib]

Was at McDonalds this morning....paid for my Bt165 breakfast meal with my credit card.  I insert card into their POS machine on the customer's side of the cash register...POS machine immediately begins processing...displays Processing for about a second"....then displays Approved for about a second...the says You'r Are Done...Remove card.....all of this took no more that 5 seconds and I get 1.5% cash back on my purchase done with my no foreign transaction fee, no annual fee credit card.

 

Now a Cash Is King guy would have looked thru his wallet for 5 seconds just to pull out some cash...hasn't even got to the point of handing it to the cashier yet....but in 5 seconds I'm done...plus I get a 1.5% cash back on my credit card account while Mr Cash Is King guy does not get no similar discount.

 

McDonalds already has card usage fees built into their pricing (like many, many merchants).  People who pay with a card to get reward points/cash back end up effectively getting the product for a lower price than Mr Cash is King who usually gets no discount.  Now yes, if you go to some places like a Sizzlers' restaurant and have one of their discount cards when you pay with a credit card you only get a 5% discount compared to 10% for cash.  But without their discount card the Mr Cash is King guy gets no discount but the guy paying with a credit card that say gives 1.5% cash back then he gets his meal 1.5% cheaper. 

 

Now if McDonalds had a policy of only accepting card payment on amounts say of over Bt200 while I wouldn't like being to use my card to pay for my Bt165 meal, I would not feel like Mcdonalds is trying to cheat me.  Quite common here in Thailand for some merchants to only accept debit/credit cards if the purchase exceeds the approx Bt200-500 range.  I understand they are concerned about the interchange fee on smaller amounts.   And I think they feel that this policy does not piss-off the customer like how a policy of wanting to charge an extra 3% fee or so to have the privilege of purchasing their product.

 

Actually I appreciate all the Cash Is King guys because many merchants...and more everyday....just build card fees into their produce/service pricing (just another cost of doing business) because they don't want to piss of any customers by tacking on a fee if using a card.  And those who pay by card who have rewards/cash back cards effectively end up getting the product cheaper than the guy paying with cash.  And end up spending less on money transfer fees to replenish/top-up their bank account in Thailand.

 

Thank you Cash is King guys.  Don't get me wrong paying with cash definitely has it's places, but fewer every day as cashless type payment methods of cards, QR Code Payment, cybercurrency, PromptPay, etc., continue to increase increase as cash sales continue to decrease.   Payment by cash still has a long life ahead of it...but a less active life.

 

 

[uwe_rayong]

3 minutes ago, Pib said:

Payment by cash still has a long life ahead of it...but a less active life.

I doubt that. The governments around the world love cashless transactions.
It makes the tax collection so much easier, if every payment for a purchase or service you receive has a digital trace.

 

 

 

 

[simoh1490]

27 minutes ago, Pib said:

Was at McDonalds this morning....paid for my Bt165 breakfast meal with my credit card.  I insert card into their POS machine on the customer's side of the cash register...POS machine immediately begins processing...displays Processing for about a second"....then displays Approved for about a second...the says You'r Are Done...Remove card.....all of this took no more that 5 seconds and I get 1.5% cash back on my purchase done with my no foreign transaction fee, no annual fee credit card.

 

Now a Cash Is King guy would have looked thru his wallet for 5 seconds just to pull out some cash...hasn't even got to the point of handing it to the cashier yet....but in 5 seconds I'm done...plus I get a 1.5% cash back on my credit card account while Mr Cash Is King guy does not get no similar discount.

 

McDonalds already has card usage fees built into their pricing (like many, many merchants).  People who pay with a card to get reward points/cash back end up effectively getting the product for a lower price than Mr Cash is King who usually gets no discount.  Now yes, if you go to some places like a Sizzlers' restaurant and have one of their discount cards when you pay with a credit card you only get a 5% discount compared to 10% for cash.  But without their discount card the Mr Cash is King guy gets no discount but the guy paying with a credit card that say gives 1.5% cash back then he gets his meal 1.5% cheaper. 

 

Now if McDonalds had a policy of only accepting card payment on amounts say of over Bt200 while I wouldn't like being to use my card to pay for my Bt165 meal, I would not feel like Mcdonalds is trying to cheat me.  Quite common here in Thailand for some merchants to only accept debit/credit cards if the purchase exceeds the approx Bt200-500 range.  I understand they are concerned about the interchange fee on smaller amounts.   And I think they feel that this policy does not piss-off the customer like how a policy of wanting to charge an extra 3% fee or so to have the privilege of purchasing their product.

 

Actually I appreciate all the Cash Is King guys because many merchants...and more everyday....just build card fees into their produce/service pricing (just another cost of doing business) because they don't want to piss of any customers by tacking on a fee if using a card.  And those who pay by card who have rewards/cash back cards effectively end up getting the product cheaper than the guy paying with cash.  And end up spending less on money transfer fees to replenish/top-up their bank account in Thailand.

 

Thank you Cash is King guys.  Don't get me wrong paying with cash definitely has it's places, but fewer every day as cashless type payment methods of cards, QR Code Payment, cybercurrency, PromptPay, etc., continue to increase increase as cash sales continue to decrease.   Payment by cash still has a long life ahead of it...but a less active life.

 

 

I'm retired, I can afford an extra 15 seconds in McD to pay for my breakfast, it won't break my schedule and the 1.5% cashback I have lost....2 baht, are you serious!

Edited November 29, 2018 by simoh1490