AYes. If you can't swipe it's 3.75. Usually my credit card clients are also my out of town brides.
A
Original message sent by KoryAK
I heard about this. Is anyone (here) going to actually do it?
OK so what exactly are you doing? Flat fee or percentage? How much? How are the customers taking it?
I have an open shop so I was thinking about a fee for those small coffee or one cupcake sales but I don't know how well it will go over for larger orders.
OK so what exactly are you doing? Flat fee or percentage? How much? How are the customers taking it?
I have an open shop so I was thinking about a fee for those small coffee or one cupcake sales but I don't know how well it will go over for larger orders.
Excellent questions. I can just see some of my clients balking at any extra $$ added to their totals. But the % adds up... too much to absorb into my profit margin.
AI think splitting it with them sounds fair. What do you think? 1.75%
In general, I don't like being dinged for the vendors banking fees. Perhaps factor the cost into your pricing, and offer a discount if people pay with cash? I know the outcome is the same, but then it doesn't feel like people are having to pay an additional fee just for the privilege of using their credit cards.
Looking at a couple of articles about the issue..
This one gives the list of the 10 states where you can't surcharge and it looks like other states are introducing legislation to prevent it.
And this article mentions that it is only for credit card and not debit card transactions
http://www.cbsatlanta.com/story/20719106/credit-card-surcharge-now-legal-but-may-not-happen
For me, I pay $.65 per debit transaction and $.20 + whatever (variable) % for credit card transactions. The tipping point is at the $25 mark - credit it better below, debit is better above. If someone hands me a debit card for a $5 tab, I will run it as credit. If I am charging a surcharge, now the question is $.65 to me or a surcharge to them. I know it would be very small, but you know how people can get all twisted! Also it's only on Visa and MasterCard, but not Discover. I'm wondering if with all the additional training, room for error, potential ticked off customers, and additional paperwork it's too much trouble!
AI think that most people are used to having the final price be much higher than the price that gets them to book, whether it be a hotel, rentals, cars, and appliances and such. There are always taxes, convenience fees, disposal fees, early check-in fees, and the like. My cell phone plan was $140 a month for 2 phones and by the time the bill came, the lowest it ever was is $178, after FCC fees and 911 surcharge, and city, county, state taxes and the texting, and picture messages fees. And Katie bar the door when we went over our texts or minutes!!! It's just the way of the world.
It might be the way of the world but I personally don't appreciate being charged extra to the stated price for something that is a business expense, and I would think twice about shopping somewhere that told me there'd be an additional 4% charge for using a card. If you put prices up and cited rising expenses, I wouldn't flinch. Now that's the way of the world!
AWell, they can always avoid it by paying with a check or cash. My credit card fees for Square were $210 last year, and PayPal was another $110. If I had that right now, I could've paid my electric bill with it. And, I am not allowed to charge extra for tax, but I pay it! I have 10% of every dollar taken in just those 2 fees.
A
Original message sent by kikiandkyle
It might be the way of the world but I personally don't appreciate being charged extra to the stated price for something that is a business expense, and I would think twice about shopping somewhere that told me there'd be an additional 4% charge for using a card. If you put prices up and cited rising expenses, I wouldn't flinch. Now that's the way of the world!
A
Original message sent by jason_kraft
Agreed. Charge everyone as if they were paying by credit card (including the fees), that way credit card users don't feel like they're paying more and you make additional profit on cash and check payments.
Yup. What he said.
AI mean, when I add up the cake, cupcakes, delivery, I cannot charge tax. But 4 times a year, I add up all my sales and pay tax on it.
A
Original message sent by Annabakescakes
I mean, when I add up the cake, cupcakes, delivery, I cannot charge tax. But 4 times a year, I add up all my sales and pay tax on it.
If there is some weird rule in your area that prohibits itemizing sales tax separately, just increase all your prices by the amount of the sales tax.
AThe ugly, fat greasy IRS guy told me, and so did the rude little snot when I called.
Leah_S, do you charge additionally for tax? (We're both in Ky)
And even if I raise my prices 6%, without it being labeled as such, it will still feel like it is coming out of my pocket. ;-)
ACould you be referring to income tax? The IRS has nothing to do with sales tax, it is managed by your state's dept of revenue.
I understand the fee rule change but don't you think most businesses were figuring their credit card fees into their costs already, that it would be a part of their cost of doing business? So why would the charge go up immediately for this new law change? It seems to me that the prices would remain the same but they could allow a discount for cash payers. I would love to see all businesses give a discount for cash.
AYou know? You MAY be right :oops: either way, taxes suck! I don't mind paying for roads and bridges and police, and people who need a hand up, but the utter nonsense we pay for is gobsmacking!
AAnna, KY exempts WHOLE cakes from sales tax. You have to pay ( and if course I add it to the customers invoice) for cookies, candy and cupcakes. The rule is literally, if you provide a fork with a whole cake you have to tax it. No fork, no tax on a whole cake.
Stop laughing.
It's in the sales tax rules. Srsly.
Tax rules are silly for sure. Here you pay 13% (!!!) sales tax on a muffin or two...but if you put six of them in a bag, no sales tax. The convenience store closest to campus (24 hour noshing) has this sign up.
Here in California, if the food is taken away/not eaten on site, you don't have to charge sales tax. Unless the law has changed...
A
Original message sent by leah_s
Anna, KY exempts WHOLE cakes from sales tax. You have to pay ( and if course I add it to the customers invoice) for cookies, candy and cupcakes. The rule is literally, if you provide a fork with a whole cake you have to tax it. No fork, no tax on a whole cake.
That's a pretty common rule, the intent is to make sure prepared food (stuff that can be eaten on-site) is taxed. If you'd prefer a simpler sales tax code I'm sure the state would be happy to eliminate the exemption for baked goods sold without utensils. ;)
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