Merchant Charging 2% For Using Credit Card

[mild7even]

Wanting to buy an item costing 64,000 baht and asked for a discount... I was told by the merchant that not only could they not give me a discount, but if I paid by credit card they would charge me 2% extra.

I found an old thread here (from 2005) discussing this, but not much more.

I wouldn't mind so much paying a small extra fee, but hel_l, 2% of this amount adds up. Are the merchants really being charged that 2%, or are they just being charged a flat fee for ringing up the transaction?

Well, I told the salesman I didn't want to pay the fee and walked out. He didn't stop me so not sure how much negotiation is warranted here, and that may even answer my own question.

I'll be back in the states in a couple weeks and the item (a camera lens) is cheaper there, though much harder to find... might just have to take a chance.

Just wondering if anybody else has any perspective on this.

[Boater]

i take it the shop must be owned by an indivdual and not a corporate company?

what where you buying?

[mild7even]

i take it the shop must be owned by an indivdual and not a corporate company?

what where you buying?

The shop is a locally owned chain--they have at least four locations here in Chiang Mai that I know of and have been around for years. Not sure of their corporate set up, but I'm willing to bet it is more of a family run business, though they may have investors.

The item is a Nikon 70-200mm f/2.8 lens...

[johnnyk]

Credit card companies bill merchants usually on a sliding scale according to volume of business.

My xperience is that on imported stuff (camera lenses would be part of this) there is very little markup in LoS so the 2% may cut substantially into his profit (the reason he is in business) so its 2% right out of his pocket.

Can you negotiate? More a question to be anwered between you and him rather than by anyone here.

You could suggest to split it.

[Thanyaburi Mac]

Wanting to buy an item costing 64,000 baht and asked for a discount... I was told by the merchant that not only could they not give me a discount, but if I paid by credit card they would charge me 2% extra.

I found an old thread here (from 2005) discussing this, but not much more.

I wouldn't mind so much paying a small extra fee, but hel_l, 2% of this amount adds up. Are the merchants really being charged that 2%, or are they just being charged a flat fee for ringing up the transaction?

Well, I told the salesman I didn't want to pay the fee and walked out. He didn't stop me so not sure how much negotiation is warranted here, and that may even answer my own question.

I'll be back in the states in a couple weeks and the item (a camera lens) is cheaper there, though much harder to find... might just have to take a chance.

Just wondering if anybody else has any perspective on this.

Hey, 2% is a "good" deal, sort of, as the more normal charge is 3% for Visa and MC and 4% for AmEx.  And, no, it's not a ripoff, it's just the merchant covering the charge that the credit card companies charge HIM for the "privilege" of being a CC acceptor.

You can, however, disallow that additional charge when you pay the bill to the CC company.  Just add a cover note that the merchant added it to the actual cost of the article/service you bought.  Hopefully the merchant did this as a separate line item.  This works as the merchant has signed an agreement with the CC company(s) not to add such a charge. 

"Works" is the operable term here as I'd not try it with a merchant that I go to often, he might get a bit bent out of shape if he figures it out.

Mac

[britmaveric]

Illegal to do so - charge 2% fee, however the merchant will set the price with the fee in the total, so the receipt will not show the fee itself. So in other words you have no proof, and credit card company sees you agreed to the set price via signature. Prob could sign it improperly then claim fraud, however then you will screw the merchant.

[imaneggspurt]

seems fair, the bank dont do the transaction for nothing, is 2 per cent worth worrying about ? .the thais do work on small margins sometimes and you walking out of the shop over 2 per cent wont matter a toss to them,.

[imaneggspurt]

Illegal to do so - charge 2% fee, however the merchant will set the price with the fee in the total, so the receipt will not show the fee itself. So in other words you have no proof, and credit card company sees you agreed to the set price via signature. Prob could sign it improperly then claim fraud, however then you will screw the merchant.

all this over 2 per cent, screw the merchant !!,claim fraud !? you have been in thailand to long my friend, and where does its say its illegal,.how do you know it dosent say somewhere in the shop that prices posted are for cash and a credit card surcharge surcharge will be charged,.also when you sign the slip it will include the commision you have AGREED to,.as for you advising to a possible fraud mr maverick i find that out of character after reading some of your posts,. Edited June 30, 2008 by imaneggspurt

[britmaveric]

Never do that myself, but I know a mate that did it. Still has a two transactions in dispute. The way I look at it, they tell you up front they are charging it, and up to you to decide if you want to do it or not. Hence use my cc, I know full well they will charge me 1-2% more. No problem for me.

[Smithson]

Illegal to do so - charge 2% fee,

Where does it say it's illegal? It's fair enough to charge as it's an extra cost for the seller.

[Prakanong]

Illegal to do so - charge 2% fee,

Where does it say it's illegal? It's fair enough to charge as it's an extra cost for the seller.

I do not know about illegal but I bet its in the merchants agreement with the CC Company they will not charge extra for purchases made on the card - they would in all probablity not get the merchant account unless they agreed to it.

I know its still practiced in many places including some in the UK I have experienced but I bet they would not put a line item as Britmaveric says as you could then have the charges taken off you CC bill and the merchant would be reminded of his obligations

[glyph]

"Wanting to buy an item costing 64,000 baht and asked for a discount... I was told by the merchant that not only could they not give me a discount, but if I paid by credit card they would charge me 2% extra...Just wondering if anybody else has any perspective on this."

Sure, pay cash.

[britmaveric]

I know its still practiced in many places including some in the UK I have experienced but I bet they would not put a line item as Britmaveric says as you could then have the charges taken off you CC bill and the merchant would be reminded of his obligations

Indeed get merchants would get their accounts yanked by visa/mc, hence that's why they won't specify the extra 1-2% separately. Thai merchants are far from stupid.