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Charging 2% is reasonable and justified in many outlets
by Zafar Ahmed on Nov 23, 2007 10:08 PM

I am a merchant myself and also a credit card holder,so I know both sides of the story. When ever we visit a an electronic showroom for eg to buy an electronic gadget like tv, cd player ,mobile etc. the shopkeepers margins are too low and in many cases as low as 1% ,whenever he swipes a customers credit card, 1.5% to 2 % is deducted by the bank from the bill amount, so if he doesnt charge this extra amount how will he make any profit. But in many cases like restaurants, hotel, and place where the margins are very high as high as 50% in most cases they dont charge in extra,but some greedy merchant dont want to leave that 2% from their own pocket. There should be a mutual understanding between the customer and the merchant,some have to charge extra and some can do even without charging extra 2% on the amount swiped.

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The above message is part of the Discussion Board:
Paying transaction fees on your card?