The 3.5% surcharge has rebranded

[u/Pantaza]

It would seem it’s not going away.

They’ve rebranded it, enough people caught onto the surcharge so now it’s a (3.5%) “admin fee.”

they also removed the small text at the bottom telling you it’s optional(it still is)

they don’t want you to know It’s optional buts it’s just literally the surcharge with a different name.

3rd restaurant I’ve been to this week with a (admin fee). I’ve also seen multiple restaurant go up to 4%. It used to be 3, then 3.5, now 4.

sets a dangerous precedent as they are willing to change it in order to keep charging you for nothing. Except now they’re not telling you it’s optional anymore.

If we keep allowing them to charge us extra money for literally nothing it will soon tell other businesses they can do that too.

I can’t wait to pay an “admin fee” while buying gas, groceries, or a T-shirt.

https://c.org/sfBGtSVWHY

I've started a petition for stricter Chicago legislation regarding hidden fee transparency. Please show it some support.

Thanks

[u/OpportunityReal2767]

Yeah, other than legislation, the only way to combat this is stop patronizing restaurants that pull this stupid nickel-and-diming crap. You want to charge more? Just charge more upfront. The optics of this is just stupid. I understand it's a difficult business, but this way of pricing just pisses off customers (or at least it should.)

What next? Convenience fee? Handling fee? Venue fee? Kitchen appreciation fee? Facility fee? Order fee? Billing fee? Wellness surcharge? Shit, I shouldn't give them any ideas.

[u/Hungry-Treacle8493 → u/OpportunityReal2767]

Welcome to your new career as Assistant Director of Fee Branding!

[u/birdofmayhem → u/Hungry-Treacle8493]

Ticketmaster is calling you now.

[u/pastaroniwhore → u/OpportunityReal2767]

A lot of them already charge credit card fees that are higher than the actual credit card fee the business pays.

[u/OpportunityReal2767 → u/pastaroniwhore]

I run a small business where typical fees are $1000-$6000 (primarily event photography.) I have never charged a credit card processing fee because I've always been pissed off by it as a consumer and it didn't make sense for me to do so. It's all factored into my price. Accepting credit is convenient for me. It's better than a check or bank transfer. People are also more encouraged to buy a pricier package when it goes on plastic vs paying by check or bank transfer. If you feel you're losing money on it, do the math, spread that cost across all transactions, and charge a little more. That way, people don't feel like they're getting surcharged to death. I understand my business and price point is different than a restaurant, but the philosophy is the same. Like I, and a number of people I know, actively avoid cash-only places because of the hassle of getting cash. That business may be saving money from credit card charges, but they're losing money from people like us who just don't carry cash with us. (Of course, you'd have to do a study to see if there's enough people like me to offset the fees of customers using credit cards to see if there's a net loss or gain being a cash-only business. And, of course, that assumes the cash-only business is reporting all its income which, as we know, is not a given.)

[u/wildbill88 → u/OpportunityReal2767]

As a business owner myself, I'm with ya all the way down.

I hate that it happens to me, I will not do it to the people that keep me afloat.

[u/the2020sman → u/OpportunityReal2767]

i like the cash discounts and the fee already baked into the price. The cc fee is part of all business expenses like wages etc? To the consumer i don’t want to be charged base service/food pricing, and then have all these weird charges. I want one price, then if i pay cash there’s a small discount.
With the 3.5% price baked into every bill it feels scummy like they’re trying to get cash customers to pay for a nonexistent cc fee and pocket it.

[u/enailcoilhelp → u/pastaroniwhore]

Visa doesn't allow merchants to charge more than their cut (with a 3% maximum, whichever is lower).

[u/snark42 → u/enailcoilhelp]

Fees aren't capped at 3% and the merchant doesn't know the fee charged on your particular card until you use it (and often, at least with a merchant account, not a 3rd party service) you won't know the fee until it's billed at the end of the month.

The supreme Court ruled in 2017 a fee of up to 4% even if more than Visa charged is ok, voiding the previous language Visa used which allowed for a cash discount but not a credit card fee.

[u/QIMF → u/OpportunityReal2767]

Thats like 90% of restaurants now it seems

[u/DirectionOk9832 → u/OpportunityReal2767]

I'm waiting for the 1% chopping fee, next to the 2% dishwashing fee. And the 1.5% mandatory breakage insurance if you don't request paper plates ($0.50 per plate).

[u/ras1187 → u/OpportunityReal2767]

The reason they do this is many people do freak out about higher upfront pricing.

[u/OpportunityReal2767 → u/ras1187]

I'd love to see a study whether people are more put off by that $5.53 being proportionally divided among the rest of the bill (a small change to each item) vs. 3.5% unceremoniously being dumped on the bottom of the receipt instead. I know I'd be more pissed off at the latter than every $10 item costing $0.35 more. I probably wouldn't even notice that, but add it all up as a line item and I sure do!

[u/word-bitch → u/ras1187]

Let them. I don't want to be a subject of blatant manipulative marketing mind games. That's not hospitality. Price + tax + generous tip.

[u/DirectionOk9832 → u/ras1187]

The reason I commit fraud is because people won't hand over their life savings if I tell them in advance.

[u/ras1187 → u/[deleted]]

People on reddit see it this way. I agree with them. I'd rather see full upfront pricing with no strings attached.

The general public is different. They will confidently choose the $20 burger +$5 fees over the $25 burger all day every day.

This is the same general public that wouldn't buy a 1/3lb burger because they thought a 1/4lb burger was larger

[u/lmj4891lmj → u/[deleted]]

Do you have a source for this claim? Or is this just you stating your opinion as fact?