Merchants don’t have to pay processing fees for checks, which is why they may not accept credit cards, or require a minimum for a card, and/or may pass along the processing fee to the customer.
Like cash, there’s still costs associated with them. Someone has to record the checks and take them to the bank. But more importantly, checks have an even worse risk of fraud than credit cards. A business doesn’t know that the account has sufficient funds, is even an active account, or that the check writer is even the account holder (can check ID, but what about business checks?). They can call the bank and verify funds, which obviously is awkward and time consuming, or there are 3rd party check verification services, which have to be paid for monthly. And then if someone bounces a check, often banks charge a fee to the depositor for that.
As a business owner, who accepts checks and charges fees for credit cards, I’ll take a check from a trusted party any day over credit cards when they want to avoid the processing fee, but I still have their credit card on file in case the check bounces.
edit: Further, it is a royal pain in the ass to accept a credit card payment, then have someone dispute the charge as if their card was stolen. The amount of energy spent taking checks to the bank is nothing compared to the energy, effort, and documentation needed to prove to a credit card company that the charge was legitimate, so you actually get paid and not take a total loss.
Checks work for situations where you know and trust the customer, and can do things like have their CC on file. Less so for situations like casual retail or trade shows.
I thought credit card processing agreements tend to forbid charging an extra fee for using a credit card. Maybe that’s changed, idk.
See my edit, and you are very far behind. Years ago VISA and MC (at least) specifically made it legal to pass along fees. A short internet search should confirm this for you.
Sorry you take offense. I just didn’t provide a fully comprehensive reply, and don’t need someone who just learned about this to educate me on the subject.
Merchants don’t have to pay processing fees for checks, which is why they may not accept credit cards, or require a minimum for a card, and/or may pass along the processing fee to the customer.
Like cash, there’s still costs associated with them. Someone has to record the checks and take them to the bank. But more importantly, checks have an even worse risk of fraud than credit cards. A business doesn’t know that the account has sufficient funds, is even an active account, or that the check writer is even the account holder (can check ID, but what about business checks?). They can call the bank and verify funds, which obviously is awkward and time consuming, or there are 3rd party check verification services, which have to be paid for monthly. And then if someone bounces a check, often banks charge a fee to the depositor for that.
As a business owner, who accepts checks and charges fees for credit cards, I’ll take a check from a trusted party any day over credit cards when they want to avoid the processing fee, but I still have their credit card on file in case the check bounces.
edit: Further, it is a royal pain in the ass to accept a credit card payment, then have someone dispute the charge as if their card was stolen. The amount of energy spent taking checks to the bank is nothing compared to the energy, effort, and documentation needed to prove to a credit card company that the charge was legitimate, so you actually get paid and not take a total loss.
Checks work for situations where you know and trust the customer, and can do things like have their CC on file. Less so for situations like casual retail or trade shows.
I thought credit card processing agreements tend to forbid charging an extra fee for using a credit card. Maybe that’s changed, idk.
See my edit, and you are very far behind. Years ago VISA and MC (at least) specifically made it legal to pass along fees. A short internet search should confirm this for you.
Yes, I did look it up. It’s more complex than that, though.
This site sums it up: https://www.lendingtree.com/credit-cards/articles/surcharges-and-convenience-fees/
good for you, my practices have been well vetted, so I’m not wasting my time reading it.
That’s great. You sound really awesome.
Sorry you take offense. I just didn’t provide a fully comprehensive reply, and don’t need someone who just learned about this to educate me on the subject.
Came here to say.