Credit Card Commission increase again

[ullyss]

Sigh, seems everything is increasing,

my Bank just inform me, now they charging 3% for Visa credit card commission!
Wah law! Double the commission, now waiting for american express which charges me 3% for commission to send me a letter, informing me they will also increase their charges.

How to run business like this? So many customer pay via credit card these days,now I have to pay bank 3% for commission, not only that, basket bank pay me my money only after 1 mth later.

Blahy capitalists!

Its a conspiracy, get everyone hook to paying via credit cards, then charge the retailers like me 3% from a 1.8% commission, almost double! How do retailers like me earn monie???

So how to account for the commission increase? Have to now start increasing my prices loh.

Buyers, beware, the shops will increase their prices soon!

Quickly buy your camera gear soon.

 

[simon80]

Our target is 10% GST
on the way :thumbsup:

 

[nuts]

Wah! When is this effective? May be buying a high cost item near future
Previously 1.8%? Not 2%?

Sigh, seems everything is increasing,

my Bank just inform me, now they charging 3% for Visa credit card commission!
Wah law! Double the commission, now waiting for american express which charges me 3% for commission to send me a letter, informing me they will also increase their charges.

How to run business like this? So many customer pay via credit card these days,now I have to pay bank 3% for commission, not only that, basket bank pay me my money only after 1 mth later.

Blahy capitalists!

Its a conspiracy, get everyone hook to paying via credit cards, then charge the retailers like me 3% from a 1.8% commission, almost double! How do retailers like me earn monie???

So how to account for the commission increase? Have to now start increasing my prices loh.

Buyers, beware, the shops will increase their prices soon!

Quickly buy your camera gear soon.

 

[jsbn]

Tell me which company doesn't raise prices? :dunno:

 

[Ola]

Time to increase employee pay.... :bsmilie: :bsmilie: :bsmilie:

 

[zcf]

give NETS user discount to encourage NETS usage? When the demand for VISA/MASTER is low, they will lower their charge again??

 

[dkw]

Sigh, seems everything is increasing,

my Bank just inform me, now they charging 3% for Visa credit card commission!
Wah law! Double the commission, now waiting for american express which charges me 3% for commission to send me a letter, informing me they will also increase their charges.

How to run business like this? So many customer pay via credit card these days,now I have to pay bank 3% for commission, not only that, basket bank pay me my money only after 1 mth later.

If credit cards did not exist, will you have the same amount of business that you have now? The greater availability of credit cards has been shown to be linked to greater consumerism, which generally benefits all businesses. Also, it affects businesses equally, so why would you feel that you've be placed at a competitive advantage?

Blahy capitalists!.

If you are running a business for profit, are you not a capitalist too? :dunno:

 

[vince123123]

Do what everyone does lor, pay by credit card increase price 2%.

The funny thing is I'm wondering how so many retailers can mark up the price for credit card payment when I understand that it is forbidden under their contracts.

 

[Chiang]

i think most shops factor in the commission charge n in the end its transfered to consumer. sad leh , next time 1 2 use cards more exp

 

[Del_CtrlnoAlt]

Do what everyone does lor, pay by credit card increase price 2%.

The funny thing is I'm wondering how so many retailers can mark up the price for credit card payment when I understand that it is forbidden under their contracts.

price inclusive of visa tax, gst, and watsoever... most importantly, profits to the organisation... (3% to visa, 2% to me, mark up 5%... 5% to GST, 5% to me, another 10% markup... since visa get 3 & GST get 5 for nothing, i must add another 10%, so 25%... and thats minimum markup... something i learn when doing retail sales in *beep* company)

 

[vince123123]

What I meant was some shops have a price tag saying S$100. When you say you want to buy, they say you pay S$102.00 if pay by credit card - thats the markup I'm talking about. If you pay by cash its S$100.00

price inclusive of visa tax, gst, and watsoever... most importantly, profits to the organisation... (3% to visa, 2% to me, mark up 5%... 5% to GST, 5% to me, another 10% markup... since visa get 3 & GST get 5 for nothing, i must add another 10%, so 25%... and thats minimum markup... something i learn when doing retail sales in *beep* company)

 

[Del_CtrlnoAlt]

What I meant was some shops have a price tag saying S$100. When you say you want to buy, they say you pay S$102.00 if pay by credit card - thats the markup I'm talking about. If you pay by cash its S$100.00

u meant the SLS style lah... they always emphasize theirs like the lowest price of the century, no profits, so if pay CC must add 3 percent...

technically, every single shop in SLS does that, and so far, every single ones who used CC are cooperative as well... buy 1k, add 30, buy 2k, add 60... song man... in case u guys dunno...

 

[di0nysus]

What I meant was some shops have a price tag saying S$100. When you say you want to buy, they say you pay S$102.00 if pay by credit card - thats the markup I'm talking about. If you pay by cash its S$100.00

so what can we do? threaten them in which way?

for biggie items >$1k...better to use CC, as to 'earn points', which ultimately 'earn money'. in a way....

 

[Sjourn]

fixed price shops use credit card, earn points

if price can be negotiated, use CASH. It is King.

 

[ullyss]

No loh, my gurung guni business is cash based, lotsa my customer pay cash , the last time, i was doing better then when i din offer credit cash facility,
nowdays those youngers all use credit cash even for less than 30-20bux transaction. How? I have to accept it, and still pay the commission for it.
Nowdays with rampant credit cards around, people are using credit cards for even a 5 dollar item.
For profit wise, no, it might appear you have a better volume sales, but in fact, with all those charges, you end up with less profit, less $$ to feed your starving kids and parents.

Remember cold storage and those major supermarkets use to offer credit card facilities, and now they don't?

You wonder why.

If credit cards did not exist, will you have the same amount of business that you have now? The greater availability of credit cards has been shown to be linked to greater consumerism, which generally benefits all businesses. Also, it affects businesses equally, so why would you feel that you've be placed at a competitive advantage?

 

[USM]

Nothing is free or there is no free lunch.

Credit cards provide the convenience and so for.

The botton line is - if you find that you can't justify the commission imposed by the banks / credit card companies, you can always resolve to cash basis or use NETS.

It's a free market - if you want to use the facility, then you have to pay a price.

Just like when the bus / MRT fare goes up, does that mean you will make less use of them, not unless you are driving your own car. The demand is fairly inelastic - meaning that an increase in the price of the good will only cause a slight drop in the demand of that good.