Quote Originally Posted by Abax View Post
While traveling in Australia recently, I encountered a business practice that has yet to become very common in the United States. Vendors - in my case hoteliers and tour operators - would charge me the fee they paid to process a credit card transaction in addition to the cost of the goods and services. I was traveling and had better things to worry about, so I just blew it off. But back home, I REFUSE to do business with someone charging this separate fee. Merchants that accept credit cards are getting a lot of business precisely because the buyer can pay with a credit card. I don't think it's unreasonable for the buyer to demand the seller pay the credit card fee.

Wait . . . I can hear the howls of protest from merchants now. I am not laying out a logical business case for or against credit card fees and who should pay them. I'm just expressing my buyer's preference. I'd probably rationalize some entirely different opinion as a seller.

So the point of the [sale price + credit card fee] comment is this: If you plan to accept both PayPal and credit cards, roll the average cost of a sale (credit card fees + PayPal fees) into the price you charge. Don't break it out as a separate fee. If you charge a premium for me to use my credit card versus some other method of payment, I'll go elsewhere and probably never come back.

Is this an irrational position on my part? Absolutely. All logical arguments will be ignored . . . this isn't about logic.

Abax
Most places consider this just another business expense. The loss of profit margin due to the fee is more than covered by the increase in total sales from accepting cards. Now, I'm sure for most companies this is factored into their prices, but the consumer doesn't see it. For most people, a cost hidden is a cost ignored. If you spell out the cost of the fee, consumers will protest.

Now, as to the question, I will purchase with either type of payment option. If I have a choice though, I prefer to use my card directly. Paypal just irritates me by constantly trying to get me to directly charge my bank account whenever I say I want to use my credit card. If I wanted to use my bank account, I WOULD HAVE SAID SO!!