Why does paying with a credit card cost more?
in
Like all companies, PBR passes the costs imposed upon it onto our customers and credit card processing costs are no different. When a company accepts credit cards, it is subject to fees and risks that are not present in typical cash style transactions, including the use of money orders and certified checks.
We had the choice of setting our prices based on either a cash style transaction (less overhead) or a credit card transaction (more overhead). Rather than listing prices that reflect the overhead we carry for credit card transactions and then trying to offer a cash discount to customers who pay with cash, money order, or certified check, we chose to list our cash prices because it was easier to implement as a policy.
When a customer chooses to pay with a credit card, they are informed that they will forfeit the cash discount and the amount they forfeit is calculated and displayed before they finalize their order. The line item is titled, "Unearned Cash Discount" and is added to the order prominently on the review page.
We understand that some customers may see this as unfair or even accuse us of "gouging" but we are being very upfront about the overhead pushed onto us as a merchant. Those "rewards" points that credit card companies offer aren't free, merchants get charged higher processing rates on their transactions and, in turn, increase their prices to maintain margins. The unearned cash discount is a reflection on the "convenience" cost of using a credit card with a merchant.
