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Discussion Starter · #1 ·
Hello. I went to look at bikes last week. I told the salesperson that I would be using a credit card to pay. He said that the credit card company would be tacking on a 2.9% surcharge. He said it was because of COVID-19 and the fact that the credit card companies classify motorcycles as "toys." I was highly skeptical. It sounded like the dealership was trying to pass on the fee that the credit card companies charge them to process credit card payments. Do you guys/gals know anything about this? Thank you.
 

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Nightfly
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Credit card companies charge merchants for the use of their card. The average processing fee for merchants is 1.5% to 2.9% for swiped cards, and 3.5% for keyed in transactions.. Sounds like the company may be trying to pass that cost on to you. Although to actually tell someone that is something I've never been told before. Not saying that's what is happening, just saying it's a possibility since that cost is not built into their price point. Just sayin'.
 

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2015 BMW K1600GTL & 2008 Harley Davidson Dyna Super Glide Custom
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They pay a fee to take the card, nothing to do with Covid or the type of purchase. Most dealership's limit the use of credit cards to $2,500 - $5,000.

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I bought a quad for the kids from a dealer for Christmas. While they didn't word it that way, they strongly encouraged me to write a check instead of using my debit card for that reason. They didn't want to eat the fee.
 

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Discussion Starter · #6 ·
Kind of what I figured. When I bought my car, I put $9,000, though the salesperson had to get permission past a certain amount (maybe 5K). When I told the salesperson that, he said, "That's because a car is essential." LOL
 

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Nightfly
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They pay a fee to take the card, nothing to do with Covid or the type of purchase. Most dealership's limit the use of credit cards to $2,500 - $5,000.

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Of course it has nothing to do with Covid, that's just a universal excuse for everything screwed up these days. As for what the limit a dealership will take on a card, well, that pretty much has to do with the person who has the card. Local Harley dealer took the card of a wealthy guy not long ago for 15K on a new bike. If you're good for it, why wouldn't they take it? But that's Harley, can't speak for other shops...
 

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Hello. I went to look at bikes last week. I told the salesperson that I would be using a credit card to pay. He said that the credit card company would be tacking on a 2.9% surcharge. He said it was because of COVID-19 and the fact that the credit card companies classify motorcycles as "toys." I was highly skeptical. It sounded like the dealership was trying to pass on the fee that the credit card companies charge them to process credit card payments. Do you guys/gals know anything about this? Thank you.
Once upon a time when I had a retail business, as part of the merchant agreement with the credit card processor, I could not do a surcharge. It also costs to process checks and there are risks involved with that. Cash always talks and should get at least a 3% discount.
 

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I do heating and air conditioning work.
I take credit cards.
Ive had people charge, I think the highest to date was around 9k.
The charge to me is 1.8% if I swipe and it goes thru, 3% if I type in the guys numbers.
That comes off my money. Someone pays me $100 to fix a furnace, and I key it in, $97 shows up in my bank account. That $3 goes to the processing company.
The 18% that Visa or MasterCard charges goes on the customers account.

In my line of work, especially service repair, you almost have to offer it.
Many is the time they almost have a heart attack when you tell them how much it's gonna cost to get the ac blowing cool air.
Until you say MasterCard or visa is ok.
Then, it's like, "Sure, no problem, go ahead and do it."
 

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American Legion Rider & sub-Administrator
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It sounded like the dealership was trying to pass on the fee that the credit card companies charge them to process credit card payments.
I doubt the wuhan has anything to do with it.

I am surpised the dealership would take cc for vehicle purchase
Yeah, Covid is blamed for everything now. As others have said, the dealer was just passing on the credit card fee. As far as dealerships accepting credit card purchases go, they do and have for years. I got an American Express card because I saw a guy purchase 2 full dress Harley Electra Glide Classic's once. He said it was the only company he knew of that would up the customers credit limit with just a phone call. Now this was around 50 years ago so things were a lot different back then and an American Express card was like the king of cards. But I thought at the time I might some day do the same so got their card. Never actually used it for that but it did improve my credit score for house purchases. I had no idea that would happen. I was still a bit young then so learning the financial ropes was still new to me.
 

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I’m getting ready to buy a new bike, as soon as the dealer can get what I want. They said that they limit the credit card to no more tHan $3,000 because of the fee that have to pay. When I bought a new Subaru in cash several years ago, I wanted to put the entire amount on a card for the 1.5% I get back, but they would only accept it for up to $2,000.
 
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Retired twice: Navy and as a govt contractor
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I do heating and air conditioning work.
I take credit cards.
Ive had people charge, I think the highest to date was around 9k.
The charge to me is 1.8% if I swipe and it goes thru, 3% if I type in the guys numbers.
That comes off my money. Someone pays me $100 to fix a furnace, and I key it in, $97 shows up in my bank account. That $3 goes to the processing company.
The 18% that Visa or MasterCard charges goes on the customers account.

In my line of work, especially service repair, you almost have to offer it.
Many is the time they almost have a heart attack when you tell them how much it's gonna cost to get the ac blowing cool air.
Until you say MasterCard or visa is ok.
Then, it's like, "Sure, no problem, go ahead and do it."
Notice you didn't mention Amex, they still charging you more than all other cards?
 

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Notice you didn't mention Amex, they still charging you more than all other cards?
I don't think I take American Express.
Just MasterCard and Visa.
I know AMEX sends me emails quite regularly, I kind of ignore them,

It's not the card company that charges me, it's the processing compsny.
I use Clover. Square is a big one, I almost went with them, but when you read the fine print, screw them.
Payzer, Merchant, Chase, the list goes on. It's Clover that actually takes the charge and puts the money in my account, less 3%. Usually within 24 hours. Clover then goes and gets the money from Visa or MasterCard.

I'm not sure on AMEX. I think one might have to set up a separate account with them.
 

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I got a new roof on my house, there was a 10% covid surcharge. Shingles were made in china and the guys can't social distance, or wear a mask, on the roof; so the 10% is an added risk factor charge of using Chinese shingles and being outside, on roof, with strong wind, without a mask a no proper distancing. The guys were all in their early 20's, so the risk of a covid death for them was insanely high; something like a 1 in 86,000 chance which is the same of dying from a dog attack!...the vaccine should take care of all this, but I'm currently not working because my skin fell off after my first vax shot.

Trumps gone and Biden's getting it under control; sunglasses on, things are looking bright!


PS. Breaking news....CDC recommends wearing your seatbelt outside your car just in case you're hit by a car while walking down the sidewalk.
 

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I got a new roof on my house, there was a 10% covid surcharge
That is utter bullish*t.
Do you get the 10% back if nobody got sick?.........which clearly nobody would out in the open, on a roof.
Covid has given people an opportunity to make up new lies about why things cost so much.
 

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Nightfly
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That is utter bullish*t.
Do you get the 10% back if nobody got sick?.........which clearly nobody would out in the open, on a roof.
Covid has given people an opportunity to make up new lies about why things cost so much.
Totally agree. Any excuse to charge more money and screw the consumer. This Covid **** is being taken to the limit. I hope the guy was joking about Biden. It not, we are doomed.
 

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Hey TR, just heard on the news today that there is going to be a fuel shortage this summer. Not because there isn't any fuel but because there aren't any tanker drivers. All because of Covid cuts.
 

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Nightfly
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I wouldn't get overly worked up about it. They love to scare people and keep you home. Sure, some drivers have retired but the claim that drivers need "special training" to haul fuel is something I never saw. Ask me how much special training I had to haul gasoline.... ZERO. You just had to not think about what your hauling and drive cautiously, which with the morons populating the highways today is a formidable task. I have lived my life as I always have, doing what I've always done, To say there aren't any tanker drivers is a bit over the top John. I drive for a living these days but not trucks, delivering high end cars to those who can afford them. I see tankers everywhere I go. Lots of trucks at the loading terminals I pass by. Stay calm and keep on trucking. Not to worry, Joe will take care of us. Now that's something to worry about....
 

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The 2.9% charge is just the processing fee. I work for a tree care company and we charge 3% on card transactions. We either have the option of increasing our prices on everything to cover the cost or we only pass it on to those that pay the 3% fee. Bottom line is, everywhere you go you're paying a card processing fee, you just don't know it because it's baked into the price. I'd rather that they not bake it into the price in case I come with a check because then I'm subsidizing someone else's transaction.
 
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