Help Me Solve My Credit Card Conundrum

Posted on December 1, 2009 by Laura Christianson

credit cardsI stopped by my local florist to place an order. Whipped out my American Express card to pay.

The clerk put my card on the counter, stared me in the eye, and asked, “Can you pay with cash or check? That way, we don’t have to pay expensive credit card fees.”

Taken aback by this unusual (and unexpected) request, I thought a moment. I didn’t have enough cash on me to pay for the flowers, and I only write checks when absolutely necessary. I said no.

I’m having second thoughts about patronizing this florist again, because I don’t like being put in the uncomfortable position of saying “no” to a clerk who should never have questioned my use of a credit card in the first place.

The sign on the door says they accept the usual credit cards. As a consumer, I assume that businesses who accept credit cards build credit card fees into their prices (the flowers I ordered weren’t inexpensive, which furthered my assumption).

Am I too sensitive? Have you had this experience? What would you have done in this situation?

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  • http://gingertakamiya.blogspot.com/ ginger takamiya

    I can understand both sides on this one. On one hand, it’s rude that the merchant would insist you use cash when he clearly advertises the acceptance of CC.

    On the other hand, the fee’s that CCC charge can be outrageous! Discover charges the most usually. Where do you think that “cash back” is coming from? Your merchant!

    This really bites into the bottom line for all merchants. Especially for small business who barely make ends meet. To tack on $.50 to 10% of your purchase as fee’s the merchant must pay, can be a harsh pill to swallow sometimes. Remember, the merchant is paying for YOU to use the card.

    Small business are failing everyday because they can’t make their quota to stay open. If the merchant requested a check…they might be in need. After all they are taking a big chance that your check is good.

    I think we should have a bit of compassion for small businesses. They don’t really make that much. Net income ranges from $13-40,000 a year. Not the big money makers we all thought.

    Just my opinion.

  • http://gingertakamiya.blogspot.com/ ginger takamiya

    I can understand both sides on this one. On one hand, it’s rude that the merchant would insist you use cash when he clearly advertises the acceptance of CC.

    On the other hand, the fee’s that CCC charge can be outrageous! Discover charges the most usually. Where do you think that “cash back” is coming from? Your merchant!

    This really bites into the bottom line for all merchants. Especially for small business who barely make ends meet. To tack on $.50 to 10% of your purchase as fee’s the merchant must pay, can be a harsh pill to swallow sometimes. Remember, the merchant is paying for YOU to use the card.

    Small business are failing everyday because they can’t make their quota to stay open. If the merchant requested a check…they might be in need. After all they are taking a big chance that your check is good.

    I think we should have a bit of compassion for small businesses. They don’t really make that much. Net income ranges from $13-40,000 a year. Not the big money makers we all thought.

    Just my opinion.

  • http://www.bloggingbistro.com/ Laura Christianson

    Ginger,

    Thanks for sharing your thoughts. As a small biz owner myself, I know that we do everything we can to work within tight budgets.

    To me, this credit card conundrum is almost more of a customer service issue. As a return customer of this florist, I got kind of a weird, uncomfortable feeling when I was asked to pay with cash/check.

    For a small-town florist in which competition is stiff (there’s another florist just down the street), it seems almost like shooting yourself in the foot to ask customers to use a certain type of payment.

    I’m still mentally processing this — any and all comments are most appreciated.

  • http://www.bloggingbistro.com Laura Christianson

    Ginger,

    Thanks for sharing your thoughts. As a small biz owner myself, I know that we do everything we can to work within tight budgets.

    To me, this credit card conundrum is almost more of a customer service issue. As a return customer of this florist, I got kind of a weird, uncomfortable feeling when I was asked to pay with cash/check.

    For a small-town florist in which competition is stiff (there’s another florist just down the street), it seems almost like shooting yourself in the foot to ask customers to use a certain type of payment.

    I’m still mentally processing this — any and all comments are most appreciated.

  • Laura

    Here’s a comment one of my e-mail subscribers sent me:

    American Express charges the businesses more than other credit cards but gives more reward points to the consumer. I’ve never had a business refuse my Visa, but a lot my American Express.

    I confess, I’ve never looked to see if the “refusers” had a sign saying “No American Express,” or just didn’t list AE in the credit cards accepted chart. The business should honor what they post about credit cards or else they lose customer confidence and trust. It is important to hold them accountable to change the sign. I’ll look for the sign in the future before I pay.

  • Laura

    Here’s a comment one of my e-mail subscribers sent me:

    American Express charges the businesses more than other credit cards but gives more reward points to the consumer. I’ve never had a business refuse my Visa, but a lot my American Express.

    I confess, I’ve never looked to see if the “refusers” had a sign saying “No American Express,” or just didn’t list AE in the credit cards accepted chart. The business should honor what they post about credit cards or else they lose customer confidence and trust. It is important to hold them accountable to change the sign. I’ll look for the sign in the future before I pay.

  • Jesse

    I sympathize with the business. I want a national non-profit debit card run by the U.S. Treasury to compete with the commercial cards. Why? Because paper cash is being phased out, and as things are today, we’ve outsourced our currency system to a small group of middle men who take a cut from a rather large number of overall transactions (retailers and consumers are the losers). Don’t blame the florist. Blame our politicians in D.C.

  • Jesse

    I sympathize with the business. I want a national non-profit debit card run by the U.S. Treasury to compete with the commercial cards. Why? Because paper cash is being phased out, and as things are today, we’ve outsourced our currency system to a small group of middle men who take a cut from a rather large number of overall transactions (retailers and consumers are the losers). Don’t blame the florist. Blame our politicians in D.C.

  • http://www.bloggingbistro.com/ Laura

    Jesse – Interesting idea! Love it when people think outside the box.

    Here are more comments I received via e-mail and Twitter:

    Jan – I recently found out that a bakery I patronize was paying nearly as much in fees to the credit company as the price of the loaf of bread I buy there each week. That means they were loosing money every time I bought one because the cost of ingredients and staff time cost more than they kept. They never mentioned the problem but my husband told me about it and when I asked someone in the store they said he was correct. Now I try only to use my credit card at any local business if I’m spending at least ten dollars.

    @joellem (Twitter) – Strange. Usually businesses have a sign if they only allow CC purchases above, say, $20, and do cash for sm purchases.

  • http://www.bloggingbistro.com Laura

    Jesse – Interesting idea! Love it when people think outside the box.

    Here are more comments I received via e-mail and Twitter:

    Jan – I recently found out that a bakery I patronize was paying nearly as much in fees to the credit company as the price of the loaf of bread I buy there each week. That means they were loosing money every time I bought one because the cost of ingredients and staff time cost more than they kept. They never mentioned the problem but my husband told me about it and when I asked someone in the store they said he was correct. Now I try only to use my credit card at any local business if I’m spending at least ten dollars.

    @joellem (Twitter) – Strange. Usually businesses have a sign if they only allow CC purchases above, say, $20, and do cash for sm purchases.

  • Laura

    Here’s another interesting comment sent from Elaine, who subscribes to my blog via e-mail:

    My problem is the opposite of yours. I like to write checks because I end up spending too much when I use credit cards. Often businesses won’t take checks because they are afraid of them being returned.

    Since my husband owned his own business for 20 years, I knew that there was a fee involved with credit card use. And yes, they should build the fee in to their prices. When a business makes the request they did to you, to me it’s evidence the business is in trouble and is trying to find every conceivable way to cut back on their costs.

    I think I would go to a different florist because I’m sure that the others will take your credit card in a minute. They want your business. It’s a shame that this clerk (it was probably the owner) because in trying to save a little bit she may have lost you as a customer. However, if you really like this florist you could still go there, sacrifice by using a check and minister to this person and let her know you are praying for the business.

  • Laura

    Here’s another interesting comment sent from Elaine, who subscribes to my blog via e-mail:

    My problem is the opposite of yours. I like to write checks because I end up spending too much when I use credit cards. Often businesses won’t take checks because they are afraid of them being returned.

    Since my husband owned his own business for 20 years, I knew that there was a fee involved with credit card use. And yes, they should build the fee in to their prices. When a business makes the request they did to you, to me it’s evidence the business is in trouble and is trying to find every conceivable way to cut back on their costs.

    I think I would go to a different florist because I’m sure that the others will take your credit card in a minute. They want your business. It’s a shame that this clerk (it was probably the owner) because in trying to save a little bit she may have lost you as a customer. However, if you really like this florist you could still go there, sacrifice by using a check and minister to this person and let her know you are praying for the business.

  • Emily Gooch

    I can understand the business wanting to save money on the fees. However, it is rude and bad business practice to make customers feel uncomfortable. If they really need to cut down on the fees, the business should have put out a sign stating a fee would be added if the credit card purchase is under certain amount and let the customer know why. This way, the customer has the choice to pay differently without feeling pressured.

  • Emily Gooch

    I can understand the business wanting to save money on the fees. However, it is rude and bad business practice to make customers feel uncomfortable. If they really need to cut down on the fees, the business should have put out a sign stating a fee would be added if the credit card purchase is under certain amount and let the customer know why. This way, the customer has the choice to pay differently without feeling pressured.

  • Laura

    That’s an excellent suggestion, Emily. It works better for everyone because it informs the customer in advance.

  • Laura

    That’s an excellent suggestion, Emily. It works better for everyone because it informs the customer in advance.

  • Bethany Macklin

    That is exactly how my husband, a small business owner, handles that issue. He has a sign clearly stating his policy. It works well and leaves no one in an akward position. In a time of such economic stress for owners and consumers alike, business owners really have to step up to the plate and earn their customer’s patronage-and customer service is where it all begins…