Why are gun stores/dealers the only business to charge credit card fees

[freakshow10mm]

Like the one gentleman above said, he builds in his 3%.. I'd never do business with him.

Of course I do, just like many others. That's called overhead. You take all your costs and figure that into your price. Whether business like me are honest about factoring it in or concealing it, that's one thing. I consider all costs when I set my prices. That includes any merchant fees, insurance, utilities, paper, pens, ink, advertising, etc. To not charge or include an operating cost in a product is foolishness.

 

[10-Ring]

Some businesses are so big & have so many transactions, they can wave the fee as a courtesy to their customers -- guns shops tend to have smaller margins, struggle to stay open & operate on a very tight budget.
IMO, 3% is a cheap price to pay to have my favorite shop stay open

 

[slammy]

Nobody mentioned a-mex I guess they charge an even higher fee....much to my dismay It's the only CC I have....I hate those interest charges...

 

[KarenTOC]

Like the one gentleman above said, he builds in his 3%.. I'd never do business with him.

There's a farmers' market near me that doesn't take credit cards. They're only open on the weekends, and their prices are ridiculously high (and I have a sneaking suspicion that the veggies in shrink wrap with the Dole logo on them are not actually locally grown fresh produce, but I digress). Other than that, I don't know any places that don't take credit cards. Grocery stores, gas stations, department stores, convenience stores... all take credit cards and all count the fees as overhead.

I use my credit card for everything, and pay it off each month, because there's no incentive NOT to. If every business offered a cash discount, I'd probably shred my card. Especially if "cash" meant real cash and didn't include checks. After all, a business has to build in a percentage of overhead to cover bad checks.

 

[ShadyScott999]

Like the one gentleman above said, he builds in his 3%.. I'd never do business with him. Hard to make a living? It's hard for ALL of us these days...... I ran a bike shop for years, and I was 100% in line on all prices across the board. I struggled too. That's capitalism for you. Find a new business. That's what I had to do...

You shouldn't do business with ANYONE that takes CC's then. We all build the cost in as overhead. The guys who up charge (merchant agreement be damned) based on a CC fee are only charging those who choose to use a CC to pay.
I and most others assume that everyone is going to use a CC and price my items accordingly. That is capitalism my friend.

 

[atomd]

The gun buisness is about the only retail buisness that only has a 10-15% mark up.

Gas stations make much less than that on gas..but they don't charge a fee for using a credit card (at least none that I've seen do). They make more profit on snacks and drinks than they do gas. When the price of gas goes up, their margin doesn't...but the fee they have to pay for credit processing does go up. Some stations are getting close to breaking even on the gas.

I also don't think the M&P 9mm I just saw for sale at the local shop for $799 was a 15% markup. I think it was quite a bit more than that. I guess it all depends on the shop. None of the shops near me have a "cash discount". Some of the signs say things like "$499 Cash" but really it's $499 whichever way you pay. They just want to encourage the cash I guess.

Discount credit card processing companies are out there now and they are making it a little bit cheaper to do business. Some places probably mark it up a few percent just because they anticipate the use of credit cards I'm sure.

Let's face it....it's a credit card world. The "cash discount" days are numbered.

 

[OcelotZ3]

Other than that, I don't know any places that don't take credit cards. Grocery stores, gas stations, department stores, convenience stores... all take credit cards and all count the fees as overhead.

~15 years ago, I went on vacation to the N California Coast (Eureka & north). NONE of the restaurants in the area would take ANY credit cards! They said it was because of the fees they would have to pay. This was pretty much a shock at the time for someone on vacation who doesn't carry much cash, and there were no ATM's for many miles. Luckily they did take out-of-state checks (which many other places at the time, who would accept credit cards, would not take).

 

[Hungry Seagull]

I have gone and used credit cards many times and it will take the bank days or weeks to total up everything hoping I make a overcharge or bounce something.

So I build a CC only account and strip out the rest with cash only.

Ive gone full circle. Cash to checks then to credit cards back to checking visas or mastercards and now heading back to all cash again.

Why?

The banking fees.

 

[ShadyScott999]

Gas stations make much less than that on gas..but they don't charge a fee for using a credit card (at least none that I've seen do).

I would guess in SC at least 75% of gas stations charge .03-.04 more per gallon if you use a CC.
It is really frustrating when you look at the sign and see $x.xx Then you pull up to the pump and there is a sticker on the pump that says "Posted prices reflects cash price. Add .04 per gallon for credit or debit."

 

[Pack]

You can see this in bars, too.

Many drinking establishments will post a sign which states that they will charge a minimum of $10.00 on a credit card. Even at the markup rate on on-premises liquor, they must still take steps to preserve their profit in the face of processing overhead.

 

[Greg_TX]

The donut place by my house has a minimum of $5 to pay with a card. But with a family of 4, that's usually not an issue.

 

[MAKster]

People who say that merchants excepting credit cards is some great burden are missing the fact that customers almost always spend more when using a credit card verses cash. Studies have shown that people going into a store to buy an item will typically pay 15% more if they buy with credit. If you are looking at two guns and one is $500 and the other $550, it's painless to spend the extra $50 if you are using a credit card. People with cash cannot just thrown a few extras into the shopping cart. Stores accept credt cards because it increases their sales and profits not because they are doing you a favor.

 

[ShadyScott999]

I accept CC for one reason. I don't want to lose a sale. I do granite & marble counter tops. My average sale is about $4000.00. I have had customers walk out the door when I didn't take CC because they couldn't get their FF Miles.

It is a pain in the butt, expensive, and a general all around hassle to take CC's.

 

[Hungry Seagull]

One of these days you might get the call for that counter with cold hard cash, that oughta soothe the pain of having to deal with cc's

Ignore the ones that walk away, you could probably not make them happy at any price LOL.

I think there is rapidly a time approaching when credit cards are corroded, expired, cut limits too low, interest too high and no one ever gets soliticated for it anymore except those most likely to be late or miss a payment.

CC's are good for one thing, if the purchase does not go well, it can be contested and I understand clawbacks can be really deep against a business.

 

[Oldfalguy]

Making a deal with anyone, gun shop or car dealer etc. negotiating for "cash" and doing anything but stroking a check or shelling out the Benjamin's isn't cash-period.
I prefer telling a seller this is a cash deal up front best deal take it or leave it.
Shell or walk, what's to wonder about?
I, like others above, like the choice- Why should everyone pay the same price for xyz when the net to the seller differs? Otherwise, in effect, cash buyers are subsidizing non cash buyers where this choice is not readily available. Take the furniture stores for example. They offer all sorta of interest free for a year. If you go in there and lay out hundreds for the same couch someone else "buys"/borrows on time and pay the same price your getting screwed for 2+% if not more- don't do it.

Now back to your normal programming-

 

[freakshow10mm]

CC's are good for one thing, if the purchase does not go well, it can be contested and I understand clawbacks can be really deep against a business.

Just like the POS in Texas that is trying to use the chargeback system to steal a gun from me that I sold him. And taking his side. I have to sue him to get my money from this thief.

 

[Doodler]

They are not the only ones. In fact some retailers flat out refuse to accept Visa and American Express because they don't want to pass the ridiculous fees they charge on to the customer. I run into this all the time at truck stops, restaurants, and hotels.

 

[Bennyb747]

Gas Stations here charge 3 cents a gallon more for credit cards. Only cash people get discounts.

 

[DHJenkins]

Great.

Another "why can't I buy what I want at the price I'm willing to pay via the method I'm willing to use" thread...

Enough with the entitlement already. He doesn't have to sell it to you and you don't have to buy it.

Regardless of what your teacher might have told you, life isn't fair, it never has been or will be, and everyone is not equal.

Honestly. You're complaining about a situation that could be remedied by using a money order.

 

[chuckusaret]

Most of the gun dealers at the gun show this past weekend had signs posted stating an additional fee if a credit card was used. I found the toy I wanted, negotiated
a price and handed my credit card to the clerk and he pointed to the sign, I said no way. My purchase did not have the 3% ($20.85) additional mark up on it. He would have lost the sale if he would not have waived the 3% fee. The item was still overpriced.

 

[logical]

It's just like people here and other places that want the buyer to pay any fees to use Paypal. Most businesses realize they get business in many cases only if a customer has the option of using a credit card. One philosiphy is to take the hit as a business expense, another is to make the customer pay the fee. It's a business decision...and nobody has ever accused most gun stores of being great businessmen.

If I am selling something here or elsewhere and somebody wants to use Paypal, I gladly accept. I get the money instantly, I don't need to deposit a MO or wait for a check to clear. It's worth it to me.....then again, for all we know that fee is baked into my price now couldn't it be???????????

 

[Madcap_Magician]

All other businesses DO charge credit card fees. It costs them to be able to use Visa or Mastercard, etc. to process payments, and they pass that on to their consumers. For most companies, it's built into their pricing structure.

 

[Mags]

Hey DHJenkins, Maybe you should read the first post of a thread before you start complaining. I just asked asked a question and by the way I do have a sense of entitlement I'm very upset alot of gun dealers do not give Military Discounts I go to Iraq and back and I can get a cheeseburger at carls jr 20 percent off but I will be lucky if i can negotiate 20 bucks of a 900 dollar gun purchase. In my opinion 90 percent of Gun Dealers are money grubbing jerks. Thats Right 9 outta 10!

 

[trickyasafox]

I might be wrong, but I think its not against the TOS if you look at using CC as a handling charge.thats how all these industries I think do it.

 

[DHJenkins]

Hey DHJenkins, Maybe you should read the first post of a thread before you start complaining. I just asked asked a question and by the way I do have a sense of entitlement I'm very upset alot of gun dealers do not give Military Discounts I go to Iraq and back and I can get a cheeseburger at carls jr 20 percent off but I will be lucky if i can negotiate 20 bucks of a 900 dollar gun purchase. In my opinion 90 percent of Gun Dealers are money grubbing jerks. Thats Right 9 outta 10!

I did read it, hence the response - though it seems your real problem isn't the credit card fee.

Is it really surprising that gun dealers aren't giving discounts during a time when more guns are being sold per day than at any other point in history?

There's also the possibility that you're not very good at haggling. It takes skill to move someone down from their selling price - not just a "please".

And to answer your original quesiton - business owners do not like accepting credit cards. The only reason businesses take plastic is because too many people insist on paying that way.

Personally, I'm appreciate a cash discount because it means the dealer isn't charging everyone the 'plastic price' - only those who choose to pay it.