I Learned Today That My Doctor Is Passing On To His Patients/Customers His Processing Fee He Pays...

[global1]

to credit card companies.

I told him I've been using only my credit card and not using cash - because of the pandemic and didn't want to deal with dirty money or change. I was trying to keep myself safe - and now I'm being charged for that when I use my credit card.

I told him as a business man - paying the credit card processing fee is a cost of doing business and is good customer service - making things more convenient for his customers.

[PoliticAverse]

1. In some states it is illegal to "pass on" credit card processing fees...

(a probable result of credit-card company lobbying).

It's Illegal to Charge Credit Card Processing Fees in These 5 States
https://www.msn.com/en-us/money/other/its-illegal-to-charge-credit-card-processing-fees-in-these-5-states/ar-BB1fgmDB

In some states, retailers can't add surcharges or convenience fees. Here are the five states where it's illegal:

Colorado
Connecticut
Kansas
Maine
Massachusetts

[dsc]

2. How would that be enforced?

If I call it a cash discount instead it seems that wouldn't be passing on the cost.

[PoliticAverse]

6. Yes, that was the way merchants in New York got around the law "5% cash discount" years ago. n/t

[Bev54]

4. It used to be illegal everywhere because the credit companies

put the clause in their merchant agreements but that all changed when credit cards started giving points and wanted the cards to be used more (not sure if that is the reason for the change) and the complaints of the merchants. So it would have to be a state law now rather than a credit card agreement.

[Blue_true]

3. Sorry.

Sounds like you need to find a new Doctor. That guy sounds really self-centered.

The credit card fees are expenses that he can deduct against revenue. They are also a reality of him doing business.

[Bev54]

5. Or pay by debit card.

[multigraincracker]

7. Write him a check.

[mahina]

8. Two things. First thing, credit card companies

Make more money off of small business than many small business people do. After expenses, two or 3% is a lifetime dream for people to be able to keep. Fair enough it’s a business cost but it is a fortune.

Second thing, it’s definitely against the agreement with the processing company to do that and if you turned them into the card company he would lose the ability to take credit card payments with that processor probably.

He might just not be making it you know- a lot of businesses are having a really hard time still. Some always were. Insurance companies are a freaking nightmare to work with.

A lot of businesses, though
not doctors, only take cash for this reason among others.

I’m betting he just took some bad advice from a bookkeeper or a tax advisor

[Ms. Toad]

9. That may be in violation of his credit card processing agreement

They all used to forbid surcharges.

[marble falls]

10. Up to 5% transaction charges are a burden. In the end it's a cost and one way or another, it ...

... will show up as part of the final cost of any product.

[brooklynite]

11. Lots of stores and restaurants in NYC now passing on CC charges.

[left-of-center2012]

12. Brooklynite in post number 11 has it right

Some stores even charge less if you are paying cash.
This is not new and has been talked about off and on for years.

Those who are saying it's illegal etc etc are wrong.
I guess it depends upon what state or area in which you live.

If you find it convenient to pay with a credit card why are you upset that you have to pay the processing fee?

[GulfCoast66]

13. Why would he not? He tabulates his expenses and adds a profit margin.

The customer chooses the most convenience payment method for them and it adds up to 5% to the visit. Why should the business carry this expensive? Pay by cash or check of you don’t want to pay it. Or debit card. The credit card does not benefit the business at all.

I learned years ago when in rural Europe to carry cash. Many small businesses don’t take credit cards because of the fees.

[MichMan]

14. Time to find another doctor