Surging credit card surcharges may push more consumers to cash, debit
Surcharges for credit card purchases are growing, prompting many consumers to switch to cash or debit — or even rethink purchases entirely. In fact, some studies suggest that merchants lose more business because of surcharges than they recoup from the fees.
You’ve probably witnessed this scene at a fancy restaurant, or experienced it yourself.
The waiter brings the check to a couple who has just finished dining. The sharper-eyed of the spouses — people who are dating are less likely to dwell much on the bill, afraid of seeming tight with a buck — runs an eye down the slip and stops when they see “credit card surcharge” and the disclosure that the restaurant charges 3% or 4% for the privilege of paying with plastic.
The waiter is beckoned over to answer the question, “What’s this all about?”
That’s for first-timers. Today the diners likely either scouted the menu in advance or looked for a sign somewhere on the premises indicating that the establishment assesses surcharges.
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