xyz123

Patrick...

The cost of everything goes into the determination of prices in a business. The cost of telephone service, the cost of banking fees, the cost of electricity, the cost of labour etc.

Taking credit cards has costs. Now perhaps in your business everything you sell has a manufacturer's suggested price but most merchants have to set prices on some items to ensure there is a profit....so the costs of taking credit cards are included in the aggregate just like bank fees (as a matter of fact this is a bank fee). So, indirectly, all customers pay something, even if it is a miniscue amount, when a merchant opts to take credit cards. It most assuredly is built into pricing.

So if a merchant takes cc's, it is still my opinion that I am paying, whatever small amount the cc's fees are, for that fact.

The other part I don't understand is how you can say cc charges on small items cost the merchant more. Isn't the cc fee a percentage of the cost. Whether it is a $1.32 charge or a $450 charge, the fee is still the same percentage wise?

Besides, I still think there is a certain convenience for the merchant, especially in this day and age of the swipe terminals as opposed to the ancient method of depositing sales drafts. No trips to the bank, no walking around with cash; the amount of the charge just shows up in the merchant's account. No sticky fingers of employees, no arguments regarding I gave you a $20 and you only changed a $10...

It is much more convenient for me to pay with a cc for everything. I do so at home too. I go to the food court at the mall; they all take cc's now. I go to the movies, they take cc's. I pay my utility bills with cc's. I pay my tolls with a cc. And again, I am sure the cost of taking cc's is included in the price (as is the cost of everything else).

So I didn't mean to question the integrity of a shop keeper in jacking up the prices etc. After all, charging a surcharge for use of a cc is prohibited by the contracts merchants sign with the cc company.

Hope that clarifies.

GSteed

Interesting! Early credit card transactions were expensive for the merchant. Some rates were between 6 and 7%. Accepting a credit card also required a phone call to confirm credit. I simply posted a notice that credit card payments would be charged an extra 5%. Shortly I was notified that I was going to be sued by the credit card company. My system was illegal! No problem. I factored my costs and then rewrote my price schedule. Later I learned that credit card conversion fees were negotiable. Does anyone know what Disney is charged by AX? Another concern..Credit card companies are regularly fleeced by persons using stolen cards. They have to make up these losses...Newspapers often report the totals. Travellers, you can often find a barman or such who will convert any kind of currency or paper for you. Street operators also do this. Rates are high but you do get cash when you have to have it. Another relief source may be a US Embassy. Times change. Educate, sit down at your bank with VP. Ask him about their charges. Ask for advice. Large expenses? Maybe you can pre-pay with bank instruments. Independent tourist businesses like cash! It may be possible to negotiate a cash discount. Try it in street markets. USA dollars are still the preferred.

PatrickLondon

It all depends on the local economic circumstances, but I would guess in the vast majority of advanced economies, local currency would be preferred over US dollars. I can't see a US dollar being very acceptable for a pound of potatoes in my local street market

xyz123

GSteed...

Credit card transactions also create a paper trail. I have run into many a person who accepts credit cards who tells me that if I pay in cash, he won't charge sales tax....Magnamous on their part, of course. But what are the odds the transaction is properly reported to the taxing authorities.

So when one goes along with that suggestion, one is an accessory most likely to tax fraud!

islandbeachangel

Hi! I've found this thread to be really helpful, but I was wondering if someone could give me some specific advice regarding Euro TCs and payment of villa rental. I've rented a villa for next Fall and my balance, due on arrival, is 1250 Euros in cash. We are staying in Rome for 5 days before checking into the villa and do not feel comfortable with that much cash so I had wondered how to handle this (plus, our hotel in Venice afterwards is giving a 10% discount for payment in cash -- which would total 880 Euros. That's a lot of cash to be toting around, and with the limits on ATM withdrawals, we wouldn't be able to withdraw cash for the villa & hotel as well as what we would need for daily spending.

So, I'm assuming that I should get Euro Travelers Cheques in the exact amounts for the villa rental & hotel before I leave the US? Also - I work in NYC - I'm also assuming I will be able to get Euro Traveler's Checks at most New York bank branches?

Thanks! (sorry for being so long-winded & ignorant about this! )

xyz123

That is probably the best way to handle the situation if the villa will take euro TC's it seems.

PLMN

I too will be renting a villa which requires quite a large deposit. TO get the money back in cash when we check out, we have to pay in cash.

We upped our daily ATM withdrawl to cover the amount. We will probably withdraw it the day before and carry it in a money belt.

Robespierre

For the benefit of anyone who may stumble on this thread looking for a way to transfer money:

<b>https://www.xe.com/fx/how.htm</b>

Check out the &quot;Live Demonstration&quot; link at the left to see how quickly it happens.

clevelandbrown

An excellent exchange rate, and the wire transfer fee is far less than I have paid at banks.

Have you actually used this service? It almost seems too good to be true. I know they have been around for a while, as I use their home page to monitor euro/dollar values.

letour

This is one of a couple of relatively recent threads on travelers' checks, so you can additional advise by checking in on the topic. I just bought AAA TC in Euros last month because the school that my daughter and I are attending asked specifically for them. I then decided to use them to pay for a deposit for a home rental, that otherwise wanted me to wire money. I don't use an AAA credit card, so I had to pay in US currency for the TC, unlike gracejoan, who is able to buy them using her AAA credit card. Good deal! I don't think that the rate was especially favorable or unfavorable, but the checks were free because I belong to AAA. Assuming that I don't get charged anything by either vendor for transferring the Euro TCs into their accounts, it will have been a cheaper transaction than had I wired the money from my bank. We'll see--I'll let people know upon our return!