12 April 2014
Why is there a 3% Fee when using a Credit Card to Pay for Junk Removal?
This 3% fee, in our opinion, is in place to protect the merchant. In the past, merchants would get penalized when one of their customers used credit cards because the credit card companies would take a fee per swipe or transaction. Customers, on the other hand, don’t want their prices to increase to account for this fee because we live in a discount friendly environment and increasing prices would just push customer away. So, for a long time, merchants would just watch a piece of their margin disappear per transaction. However, last summer, a law was finally passed that protects the merchant but still takes care of the customers as well.
When customers use a credit card to pay for their service, meal, etc., then the merchant is allowed to charge the fee that is applied to them, back to the customer using the card, up to 4%. Merchants are not allowed to use this for profit, but are allowed to charge the fee up to what they are charged by their credit card processing company. We are charged 3% by our processing company, plus $0.15, but we just charge back the 3% as the extra $0.15 would just muddle the transaction.
You may be asking, “How does this take care of the customer?” Good question. Each of us, as customers, have the option to pay with credit card, debit card, check, cash, etc. For those customers that use any other form of payment other than credit card, you will not be charged a credit card fee. In addition, for concerned consumers, it should be noted that the new surcharge fee does not apply to purchases made using debit cards.
Merchants are also required to let customers know about these fees for using credit cards prior to processing their card; they should also do so before performing the service and agreeing on payment terms. For more information, read an article on the fee Here.
We hope we’ve clarified why there is a fee when using a credit card to pay for junk removal and other services you may use. If you have any questions about junk removal, please email us at [email protected] or call us at 317-291-DAWG.