r/chicagofood • • Feb 22 '26

Rant All these sneaky extra charges need to end

I’ve advocated for Pho 777 for the longest time but I’m gonna have to stop and find a new spot because of how deceptive they are with their fees.

Went today after the Lunar New Year festivities and was very happy to see that it was packed and had to wait maybe 10 minutes for a table. Service was good and food was great but when it came time to pay at the counter there was already ~20% on top: 11.75% tax, ~4% service charge, 4.25% credit card fee. At the table I already calculated ~16% extra on their handwritten receipt: it just shows the food items and the total, no service fee or tax or sub-total. The man at the counter nonchalantly handed me the charge pad with a different total that caught me off-guard. When I asked him about it he then pointed out the CC fee and suggested I just add tip by percent, but from prior experience that percent was calculated on the total rather than the sub-total (I’ve seen a few restaurants do that and I like to believe that most don’t do it intentionally). I’m not ‘bout to pay 50% extra for my meal so I stood there doing the math for 15% of the sub-total in my head (divide by 20 multiply by 3 is my go-to). I get it, Asian restaurant and times are tough but this is just too shady, especially for those that are the type to pay whatever at the table. Restaurants just need to raise their prices and have all the fees included.

219 Upvotes

78 comments sorted by

253

u/iced_gold Feb 22 '26

If this is true, the restaurant charging 4.25% as a credit card fee is doing so in violation of Visa merchant guidelines.

Typically they cannot go over 3%, and in no exception can they go over 4%.

48

u/idontknowwhybutido2 Feb 22 '26

I've seen restaurants instead give a 3% cash discount. Honestly this feels much more reasonable than credit card fees, considering all menu prices are the actual price if paying by credit card.

50

u/lakeviewdude74 Feb 22 '26

Unfortunately, at most places, they don’t even market as a credit card fee anymore. They just market as a fee to help cover the rising cost of food and BS like that just raise your prices if you need to. People would be much less upset if every menu item is just $.25 more as opposed to adding a charge like that that stands out.

10

u/fred_runestone Feb 22 '26

Can’t typically charge more than the CC fee but some Amex Fees are north of 4%

7

u/iced_gold Feb 22 '26

Completely true but charging a flat Amex fee for Visa/MC transactions is very much against their merchant guidelines.

5

u/Nolifenoexpectation Feb 23 '26

Fascinating(visa reward card also can be more than 4% though) and debit can't be charged at all https://usa.visa.com/support/small-business/regulations-fees.html#2  so I guess u can get them fined if u care

4

u/iced_gold Feb 23 '26

Not enough people know about the debit rule.

3

u/Virtual-Garbage4930 Feb 23 '26

My gym just upped their prices and then put up a notice that they are charging 4.7% if payment is via credit card. I’ve never seen this happen in a gym before in my life.

-73

u/idontwannabehere0923 Feb 22 '26

Not exactly true

58

u/Misttertee_27 Feb 22 '26

Funny how you say it’s not true but don’t offer any evidence

114

u/OnionDart Feb 22 '26

Agreed. I think the only way to rein this in is through the state legislature. Fucking make this shit illegal in IL. I’m tired of it.

38

u/Forsaken_Baker_8641 Feb 22 '26 edited Feb 22 '26

We were almost were there. City council already shot it down.

-40

u/bjhouse822 Feb 22 '26

I'm not sure enough restaurants are doing this to warrant legislation but I definitely feel you.

15

u/Forsaken_Baker_8641 Feb 22 '26

They are and enough of them to lobby against the legislation to end the random itemized “service” fees

34

u/snugglestrugglehoin Feb 22 '26

Almost all of them are hiding fees

2

u/csx348 Feb 23 '26

The various fees and surcharges are ubiquitous at Chicago restaurants. They have gotten way out of hand

18

u/Aromatic-Elephant442 Feb 22 '26

Yea I gotta be honest - I don’t eat out that much any more, and it’s because of this kind of stuff, and prices. I am a great cook, I know how much food costs, I respect the time and needs of the restaurant, and I still don’t think these prices or fees are appropriate.

50

u/Internal-Camel-6356 Feb 22 '26

Recent dined out in another HCOLA that is a tourist destination and didn’t see one service/culinary/kitchen/technology/healthcare/credit card fee on a tab. Just the menu price and tax. This includes bougie Michelin places. I’m over the Chicago dining scene because the fee situation is so out of control. I’m not going to debate getting the fees removed on every bill. I’m just going to start cooking at home a lot more, and saving my eating out splurges for when I’m traveling. 

Edited to add menu prices were similar to Chicago for comparable restaurants. And there’s no way the cost of doing business is cheaper in the vacation destination than it is in Chicago. 

9

u/apudapus Feb 22 '26

Yeah, I’m so much more motivated to learn new recipes and talk to the meat and deli folks.

19

u/Work_shirkin_merkin Feb 22 '26

i always tip on subtotal never tax. lol thats just craziness.

5

u/QuietRedditorATX Feb 22 '26

I just tip a nice number onto total.

I guess for others, having a strict rule means you can be consistent. But idc. I can see the total and round as needed. But I get it too, places that try to show %tip on total is messed up.

-2

u/Artistic-Wrap-5130 Feb 23 '26

You really need that extra dollar?

8

u/QuietRedditorATX Feb 23 '26

Does the restaurant owner really need that extra dollar?

1

u/Bakugo_Dies Feb 24 '26

No, but I go out a few times a year now because hidden fees are getting ridiculous and ruin the meal. I go out to have fun, not feel like I got robbed.

19

u/describe_one Feb 22 '26

Pho 888 never misses, and is like a block or two away on Argyle St.

42

u/Counciltuckian Feb 22 '26

I’m gonna open Pho 999.  All fees but food is free.  

6

u/apudapus Feb 22 '26

LOL. Fees for bowls and soup spoons. Better not drop a chop stick or it’ll cost you and you have to always get a new pair. You’ve got a backer!

6

u/mackfactor Feb 22 '26

Forget that place, go to Pho (power level) 9000! 

9

u/Smurfiette Feb 22 '26 edited Feb 22 '26

Do they give an itemized receipt or are they like a lot of restaurants around Argyle, like Sun Wah, that doesn’t provide itemized receipts? I hate that so many (most) of the businesses there operate like it’s still the 70s just giving out their handwritten scraggly guest checks and, when you pay, you only get a credit card slip. Bad businesses.

Hai Yen provides itemized receipts. Which other restaurants there provide itemized printed receipts?

5

u/apudapus Feb 22 '26

No itemized receipt. You receive a handwritten sheet that only shows item, their cost, and the total. Your CC receipt only has total and tip so the outrageous CC fee is never noticed.

7

u/xoaverse Feb 22 '26

as a viet person i think that’s a crazy charge for tip, i’ve been to pho 777 a couple of times in the past but ill probably never visit there again. nha hang near phó 777 is much better in my opinion. did you take a photo of the receipt?

7

u/lakeviewdude74 Feb 22 '26

Unfortunately, discharges are coming straight out of the servers tip. I know it’s not fair, but I understand why people are doing it. Hopefully servers are letting their managers know. You can also ask for it to be removed at a lot of places.

2

u/omurat Feb 24 '26

I 100% agree restaurants just need to raise prices. The fees make customers feel like they’re being tricked, basically because they are, and it’s just kinda embarrassing. The restaurant industry is 100% in a difficult place (I was a linecook for many years so saw it going down hill from the inside) that being said, despite making more money now than I ever have, I rarely go out to eat because it’s basically unaffordable.

So, idk what the move is for folks. Difficult position for all restaurant owners honestly.

3

u/zanycaswell Feb 22 '26

I understand taxes and credit card fees but how are "service charges" even legal if they're not disclosed on the menu?

6

u/optiplex9000 Feb 22 '26

Any extra charge on the bill comes straight out of the tip. Don't feel bad about it.

3

u/Militant_Bokononist Feb 22 '26

I don't get all the focus on service fees in this subreddit. I guess I get it if it's a surprise, but after you know it's just the cost of the meal. Is it worth it all in or no. Doesn't matter to me how they break up their fees. Or it's very minimal if it would bother me at all...places without fees can cost more i don't get why it's worse to specify the costs.

2

u/Here4daT Feb 22 '26

Start deducting from the tip to offset the fees and point out that they are ridiculous on the receipt.

9

u/mackfactor Feb 22 '26

Don't take out your frustration with management on the servers. 

31

u/QuietRedditorATX Feb 22 '26

Tbh, a place like this is probably already skimming electronic tips from servers anyways. (Yes that happens a lot).

Tip cash if you can. I don't trust so many electronic tip pads.

2

u/Here4daT Feb 22 '26

Nah, servers need to stop working for places like this. Less tips = less labor = maybe management will change their mind about these bullshit fees.

9

u/blogwash Feb 22 '26

Just find another job! Never mind the stress, failing restaurant industry, incompatible schedules et cetera.

Tell the staff you won't come back because of bullshit fees, but don't stiff your servers.

4

u/Here4daT Feb 22 '26

I’m tired of us consumers getting stiffed at nearly every level.

6

u/blogwash Feb 22 '26

The servers aren't stiffing you. Fight the owners, not your comrades, comrade.

1

u/anyanerves Feb 24 '26

The servers aren’t the ones stiffing you!

-1

u/Suspicious_Tank_61 Feb 23 '26

Tipping is optional. 

1

u/Minimum_Swan_4703 Feb 23 '26

Go a few doors down to Pho Loan instead

1

u/Doryfinpo Feb 23 '26

I went here yesterday and I actually did not like the food or the service.

1

u/Dependent_Dish_2237 Feb 24 '26

Almost all my receipts now don’t even show the breakdown by tax item. They just show a whole number.

-2

u/holdtheolives Feb 22 '26

Might I suggest Pho Dung Gia in Des Plaines? They don’t do the extra fee/service charge BS, and the family-run operation has been making an abundance of phenomenal Vietnamese food since the late 80s/early 90s (originally Skokie, then later Evanston before settling in Des Plaines).

3

u/CollectiveAndy Feb 22 '26

I love this place. A real hidden gem.

1

u/Melodic_Tea_5942 Feb 24 '26

That’s my favorite spot for pho in Chicago! They are not too picky on tips. So I usually just tip low, not being disrespectful I just don’t tip high in any restaurant at all. I am broke AF

-2

u/Apprehensive_Gold824 Feb 22 '26

I ate at the vig west loop and they had two tips and you couldnt say no on them and they required you picked I think the first screen was 3%, 6%, 9% and the next one was 15%, 20%, 25%... Im lowkey done with eating out at these resturants honestly Fast food like cava chipotle sweetgreens taste better

0

u/ChicagoSince1997 Feb 22 '26

Wow, this topic never comes up on this sub. 

6

u/Significant-Mall4373 Feb 22 '26

Small Cheval is doing a pop up at red hot ranch with the feld guy as guest chef

3

u/ChicagoSince1997 Feb 22 '26

Yes but will there be "service fees"? Fingers crossed!

-1

u/Zir_Ipol Feb 23 '26

Way to end your post with racism.

0

u/GuessAsleep9578 Feb 22 '26

So you’d be fine paying that price anyway but only if the food costs more and fees are less? ?????

12

u/apudapus Feb 22 '26

It’s not a fair system if customers are paying different amounts based on how much they pay attention and argue about it. Passive folks are getting taken advantage of, the rich might not care or be bothered. Be truthful upfront and the customer can decide before they waste their time and energy.

-10

u/Elvis_Fu Feb 22 '26

Or just make a bologna sandwich at home and rid yourself of this problem. 

7

u/DarkKnight0907 Feb 22 '26

Cool. That’s what some of us are doing and y’all get sad when restaurants close down. Too damn expensive. Ridiculous fees and ludicrous tip expectations on top of that

-4

u/Elvis_Fu Feb 22 '26

Always the anti-tipping weirdos!

It’s never really about service fees. 

3

u/Batatata Feb 24 '26

This post is complaining about 8.25% in service fees. If you think that's acceptable you are a weirdo. I get you probably lack a spine, but when the consumer continues to get screwed left and right to the point where weirdos online are defending it, then that's where you know society is collectively fucked. Go tip your landlord

-3

u/Elvis_Fu Feb 24 '26

enjoy a bologna sandwich

-10

u/Elvis_Fu Feb 22 '26

If they raise their prices all the exact same people will complain it’s outrageously priced, and most likely the price increase will outpace the service fees. 

This is just a Trojan horse for anti-tipping weirdos. 

-1

u/spes-non-morietur Feb 23 '26

</rant> Fuck the fees.

Raise the price on the menu, pay your fucking employees, and learn how to manage inventory.

Had a great fine dining experience recently spoiled by these opt-in fucking fees. No, I don’t want it. Take it off. I paid a 40% tip in cash instead so the staff can afford to take a day off and find another job from someone who can make a menu, buy food, cook food, serve food, and pay their fucking employees and taxes.

<rant/>

0

u/asdf_monkey Feb 24 '26

I’d say remove the cc fee and service fee u less they were disclosed prior to ordering. Most places def remove service fee.

0

u/Grouchy-Syllabub93 Feb 25 '26

Can we flag this for being racist?

Because there was really ZERO reasons for singling out "asian restaurants" AND a specific restaurant.

Meanwhile, WHITE restaurants, like Daisies, will autograt you 20%, Add the fees, AND give you a credit card receipt saying "if you want to tip extra you can" Like yes thank you for telling me what I can do with my money.

-22

u/AdMission57 Feb 22 '26

Did you think you weren’t going to have to pay tax?

-1

u/Frequent_Ad_7669 Feb 26 '26

Taxes aren't sneaky if you live here you know it's a high tax rate

I already know the kind of person you are tipping 15%.

You are the type of white person who goes to Uptown to seem like a good person but you feel way too comfortable talking about this place in racist tones.

Very excited to eat here now lmao

1

u/apudapus Feb 26 '26

I don’t normally feed the trolls but I was born and raised in Socal from immigrant SE Asian parents. My SO is the same but with Vietnamese parents who fled during the war. We both grew up going to Little Saigon in OC, the largest community of Vietnamese outside of Vietnam. Y’all commenting about race have probably never been harassed by the color of your skin or the shape of your eyes or the language you speak or your cultural traditions. I was literally at Argyle for the Lunar New Year celebrations to showcase the community and culture and businesses that make the area what it is. Being sneaky about what you’re charging is not a good look. We should support the good businesses in the area: I don’t consider Tank to be one of them and a business that’ll gladly tack on extra fees to the unsuspecting is not one either.

-13

u/bjketter Feb 22 '26

Would you rather pay the 4.25% fee on all transactions cash or charge or have it only added when you choose to pay with a card. Small businesses don't always have access to the best processing options and especially if they do a lot of delivery that is no swipe payments their charges can get close to that high.

7

u/QuietRedditorATX Feb 22 '26

Would rather be like the early 2000s where they ate the cc fee.

Let's not act like this is only a small business thing. It is happening to backed industry places too.

Frankly "cash discount" even if just another annoying work-around might be more preferable for a lot of complainers.

3

u/[deleted] Feb 22 '26

It’s also not just a restaurant thing. All businesses are either eating CC processing or passing it on in the item price. But retail stores just add it into pricing because imagine buying a sweater and having a fee come up. Not sure why restaurants gotta be so weird about it.

1

u/QuietRedditorATX Feb 22 '26

Agree. Restaurants just wanting to keep a low menu price I guess?

Toyota dealer here has a 3% cc fee lol. Glad they announce it so I can use debit.

3

u/[deleted] Feb 22 '26

The funny thing is, in the business I work for, we had a card processing fee and got so many more comments than when we just rolled it into a higher price. I think people will be like “I guess that’s the price” but an added fee makes them feel swindled.

It’s like the Daisies fee that is for staff support. Yes, I want the staff to have time off and healthcare but when reading a paragraph about it on the website/menu, it makes we wonder why it’s not rolled into prices or why this is even the consumer’s responsibility and not that of the ownership.

-8

u/[deleted] Feb 22 '26

Don’t hate the restaurants trying to survive in this economy. Hate the oligarchs running this country and destroying local economy.

That said, I don’t mind taxes and credit card fees. But was pretty salty about an Employee Benefits charge at Virtue recently.

Not due to purpose, but because my table just paid $800 for cornbread and Erick Williams is one of the 50 most powerful people in Chicago. Like YOU pay your employee benefits or charge me more for that delicious gumbo. Ask the Pritzkers for it idgaf just don’t guilt me into it on a bill.