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Posted: 12/20/2005 2:54:12 PM EDT
Why do many gun dealers charge an extra three percent for purchases made on a credit card.

Yes, I know about the points and they have to pay Visa, Mastercard, Visa, and especially AMEX for using their services but thats part of the cost of doing business in the 21 century.

When I go to my local grocery store, Wally-World, or Dillards, I don't have to pay three percent above the advertised price for using a credit card. Likewise when I go to McD's to eat, I don't get a 3% discount for paying cash.

What's the deal here? Is anyone else pissed that this goes on?
Link Posted: 12/20/2005 2:57:16 PM EDT
My local gunstore doesn't charge extra, nor does GT Distributers in Austin
where I bought my AR. I wouldn't shop there if they did.
Link Posted: 12/20/2005 2:58:11 PM EDT

Originally Posted By NeoCon007:
Why do many gun dealers charge an extra three percent for purchases made on a credit card.

Yes, I know about the points and they have to pay Visa, Mastercard, Visa, and especially AMEX for using their services but thats part of the cost of doing business in the 21 century.

When I go to my local grocery store, Wally-World, or Dillards, I don't have to pay three percent above the advertised price for using a credit card. Likewise when I go to McD's to eat, I don't get a 3% discount for paying cash.

What's the deal here? Is anyone else pissed that this goes on?



First of all, Large stores dont pay 3% they can be down well below 1% (WELL below) Second, you do realize that the margins on guns is very small and the volume very low. 3% to most small timers can be more than 25% of the profit. That is a huge deal.

Link Posted: 12/20/2005 3:02:30 PM EDT
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.


Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.
Link Posted: 12/20/2005 3:03:29 PM EDT

Originally Posted By neshomamench:

Originally Posted By NeoCon007:
Why do many gun dealers charge an extra three percent for purchases made on a credit card.

Yes, I know about the points and they have to pay Visa, Mastercard, Visa, and especially AMEX for using their services but thats part of the cost of doing business in the 21 century.

When I go to my local grocery store, Wally-World, or Dillards, I don't have to pay three percent above the advertised price for using a credit card. Likewise when I go to McD's to eat, I don't get a 3% discount for paying cash.

What's the deal here? Is anyone else pissed that this goes on?



First of all, Large stores dont pay 3% they can be down well below 1% (WELL below) Second, you do realize that the margins on guns is very small and the volume very low. 3% to most small timers can be more than 25% of the profit. That is a huge deal.




This is not true of the stores that I used to frequent. They took me for a ride on many occassion while I was still young and impressionable.
Link Posted: 12/20/2005 3:05:34 PM EDT
Because the have to try and make a profit.
Link Posted: 12/20/2005 3:05:54 PM EDT

Originally Posted By bblake00:
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.


Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.



I see what you are getting at, but do you know of any other small businesses that charge extra for credit card purchases?
Link Posted: 12/20/2005 3:06:06 PM EDT
[Last Edit: 12/20/2005 3:20:02 PM EDT by Phil_in_Seattle]
You aren't getting charged extra for using a credit card you just aren't getting the 3% cash discount incentive.

I like that I can earn a 3% discount by paying in cash.


I see what you are getting at, but do you know of any other small businesses that charge extra for credit card purchases?


I don't know of any others that give me a discount when I pay in cash.


ETA- there are several gas stations by me that give a discount when you pay in cash, they have both the cash and credit prices posted.
Link Posted: 12/20/2005 3:08:00 PM EDT
Link Posted: 12/20/2005 3:12:30 PM EDT

Originally Posted By BallisticTip:
Because the have to try and make a profit.





Most businesses don't profit or prosper by alienating their plastic using customers.
Link Posted: 12/20/2005 3:15:33 PM EDT

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.



i think so too. cash discount = no more visa.

oops!
Link Posted: 12/20/2005 3:15:46 PM EDT

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.





That's very interesting. I would never try to damage any of my local dealers, but the practice is definately bad business. What got me thinking about this topic in addition to some of my locals, is an ad I saw on Gunbroker that mentioned C.C. purchases add 3%.
Link Posted: 12/20/2005 3:17:05 PM EDT
This is an old argument with dealers justifying it and buyers complaining.

Basically, I never buy from a dealer who charges 3%- I don't care if they do mark up the price that 3% and then I can make the call whether to buy it or not. But to force me to pay 3% over someone paying cash is pretty much illegal in the eyes of the credit company and against their policy if they would bother to read their own policy.

All you would need to do is buy the product, dispute the 3% charge after and they would suck that money right back out and also warn them against that type of activity in the future or risk losing being able to take credit cards at all.

A credit card is a convenience for both the buyer and the seller. it allows the buyer to make a purchase with borrowed money if they do not have it all up front. It also allows the seller to make a quick sale, and get paid instantly that day, without having to wait for a check to come. The buisness is also getting sales they normally would not get by taking credit cards. I don't see why they feel it is taking money away from them when it actually brings them business.

But the dead horse icon will be along shortly if it has not been posted whilst I write this.
Link Posted: 12/20/2005 3:18:07 PM EDT

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.



exactly.
Link Posted: 12/20/2005 3:18:17 PM EDT

Originally Posted By Phil_in_Seattle:
You aren't getting charged extra for using a credit card you just aren't getting the 3% cash discount incentive.

I like that I can earn a 3% discount by paying in cash.


I see what you are getting at, but do you know of any other small businesses that charge extra for credit card purchases?


I don't know of any others that give me a discount when I pay in cash.



I know of a lot of little places that do. They all have the same thing in common, low margins and low volume.
Link Posted: 12/20/2005 3:18:28 PM EDT

Originally Posted By NeoCon007:

Originally Posted By bblake00:
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.


Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.



I see what you are getting at, but do you know of any other small businesses that charge extra for credit card purchases?



There are a few mom and pop shops in my area that do, but the also have a big sign at the register stating that there is a 3% charge on CC transactions. When I go in to them I make sure to bring cash. I have also walked out with a good deal too since I did use cash. CC does give a bit of security but unless you are buying a big ticket item and expect some trouble down the road jsut pay cash.

Cash is king.........
Link Posted: 12/20/2005 3:20:45 PM EDT
Some card companies charge the fee on top of the charge. Some get their money from the outrageous finance charges.
Link Posted: 12/20/2005 3:21:16 PM EDT

Originally Posted By bblake00:
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.

Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.



Exactly. Dealer sells Glock 17 for $469.00 after tax the transaction total is 507.10. Customer pays with a credit card, Dealer pays the credit card company .03% or $15.21. Well the Glock cost the dealer $452.00 after shipping so he makes $1.79 selling a $450.00 gun. Then he has to wait for atleast a day before the funds are posted to his bank account, even longer if the transactio is for over $1000.00 How is he supposed to make a living on that? Even in volume?

There is an old joke in the Gun Industry.

You know how to make a little money selling guns?

Start with a lot.
Link Posted: 12/20/2005 3:25:26 PM EDT

Originally Posted By Stormtrooper:

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.



exactly.




Yup it is. I see it mostley with mom and Pop type stores. I pay cash now I really try to stay away from the plastic when I can.

I know of one store that went to CC after a lot of people started complainging that he didn't aceot CC's. when he got the machine every thing went up in price by 2% to cover the fees. He will still sneak a deal in every know and then depending on what he sells to the purchaser that do not show their ass and end up dropping a big chunk of change.
Link Posted: 12/20/2005 3:26:43 PM EDT

Originally Posted By bblake00:

There are a few mom and pop shops in my area that do, but the also have a big sign at the register stating that there is a 3% charge on CC transactions. When I go in to them I make sure to bring cash. I have also walked out with a good deal too since I did use cash. CC does give a bit of security but unless you are buying a big ticket item and expect some trouble down the road jsut pay cash.
Cash is king.........



That is the first report I've seen on the mom and pop shops charging extra, most of them in my area just don't do credit cards.

9 times out of 10, I'm a cash and carry man. Occaisionally though, when purchasing a $1,000+ firearm, I like it on plastic so I can pay over two or three months.
Link Posted: 12/20/2005 3:27:54 PM EDT

Originally Posted By sysop:

Originally Posted By bblake00:
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.

Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.



Exactly. Dealer sells Glock 17 for $469.00 after tax the transaction total is 507.10. Customer pays with a credit card, Dealer pays the credit card company .03% or $15.21. Well the Glock cost the dealer $452.00 after shipping so he makes $1.79 selling a $450.00 gun. Then he has to wait for atleast a day before the funds are posted to his bank account, even longer if the transactio is for over $1000.00 How is he supposed to make a living on that? Even in volume?

There is an old joke in the Gun Industry.

You know how to make a little money selling guns?

Start with a lot.


What dealer is paying $469 for glocks thats quite high.
Link Posted: 12/20/2005 3:31:23 PM EDT
[Last Edit: 12/20/2005 3:33:52 PM EDT by NeoCon007]

Originally Posted By olyarms:
What dealer is paying $469 for glocks thats quite high.



I believe in his example, the dealer's cost was $450.

What I want to know is where you can buy a new glock for $469? In my area they are all $520+.

ETA: + 3% if you put it on a credit card
Link Posted: 12/20/2005 3:35:12 PM EDT

Originally Posted By olyarms:

Originally Posted By sysop:

Originally Posted By bblake00:
One way or another you'll pay the credit card fee. Some stores mark every thing up to cover the CC fees. So if you buy every thing with cash then you are paying extra for the use of a card you didn;t use.

Plus the chain / box stores get to pay a bit lower of a fee since they are dealing in such volume in sales.



Exactly. Dealer sells Glock 17 for $469.00 after tax the transaction total is 507.10. Customer pays with a credit card, Dealer pays the credit card company .03% or $15.21. Well the Glock cost the dealer $452.00 after shipping so he makes $1.79 selling a $450.00 gun. Then he has to wait for atleast a day before the funds are posted to his bank account, even longer if the transactio is for over $1000.00 How is he supposed to make a living on that? Even in volume?

There is an old joke in the Gun Industry.

You know how to make a little money selling guns?

Start with a lot.


What dealer is paying $469 for glocks thats quite high.



I ended up getting a brand spank'en new 3rd Gen. G26 for $450 from a local shop. I had to pull a few strings but I was able to get the little beuty in the palm of my hand.
Link Posted: 12/20/2005 3:36:12 PM EDT
[Last Edit: 12/20/2005 3:38:58 PM EDT by Stormtrooper]
ahh, it doesnt matter.
Link Posted: 12/20/2005 3:41:58 PM EDT
[Last Edit: 12/20/2005 3:42:21 PM EDT by themadhatter]

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.

bingo
Link Posted: 12/20/2005 3:42:57 PM EDT

Originally Posted By themadhatter:

Originally Posted By Aimless:
I think that's a violation of their agreement with the credit card company.

bingo



Ive known businesses to lose their ability to take credit cards over this. All it takes is one person to complain.
Link Posted: 12/20/2005 3:52:36 PM EDT
My former butthole dealer did that crap to me for awhile on top of turning his wifes mouth loose on me occasionally; now I drive 90 minutes to a real cool gun shop that wants to be nice to me so I will by things there! I am going to miss that 3 pack a day chain smoking,donut eating, know it all,politically correct, bisexual, biotch. Sorry not trying to hijack, just sharing.
Link Posted: 12/20/2005 3:52:49 PM EDT
Where I work, we offer a 3% discount if you pay cash.
Link Posted: 12/20/2005 4:00:13 PM EDT

Originally Posted By NeoCon007:

Originally Posted By olyarms:
What dealer is paying $469 for glocks thats quite high.



I believe in his example, the dealer's cost was $450.

What I want to know is where you can buy a new glock for $469? In my area they are all $520+.

ETA: + 3% if you put it on a credit card




I could have had one today brand new and shiny(well, not shiny) for $470, my everyday price.

I won't say the name of the dealer, but my regular dealer doesn't do credit cards, I suspect for that very reason. He already charges absolutely no more than he can get away with, and adding 3% for him would take away any of his profit. Passing it on to the customer is not his idea of good business, and he won't do that either. His only option: not take them. I don't see where it's hurt his business any, since he nearly has more orders than he has time to fill and he doesn't even advertise.

The shotgun I bought last week was put on the card at Sports Authority, but they make enough esewhere that they can soak up any CC charge without problem.
Link Posted: 12/20/2005 4:02:02 PM EDT
I was charged 3% on my Walther purchase a few weeks back...the price was so good that I understood completely why they had to charge me more.

I had NO problem with it, and will continue to buy from them.

HH
Link Posted: 12/20/2005 5:00:30 PM EDT
It's a violation of most charge card agreements to charge extra for CC use. Offering a cash discount is OK. I've known sharp guys to negotiate for the cash discount on a big ticket sale even if it isn't offered. After all, what's the dif to the retailer: take 3% less on a cash sale or end up with the same amount on a CC sale? I know a guy that bought his wife a piece of jewelry while out of state on a business trip. He not only asked for and received the 3% discount, but also negotiated for no sales tax (possibly had it shipped).
Link Posted: 12/20/2005 5:35:17 PM EDT
In the shop where I work, the marked price is waht you pay, plus tax.

If you pay cash or check, we can knock off ~$10-15 (depending on the gun) since we donthave to pay the 1.8% to the bank.
Link Posted: 12/20/2005 6:40:05 PM EDT

Originally Posted By Goonboss:
My local gunstore doesn't charge extra, nor does GT Distributers in Austin
where I bought my AR. I wouldn't shop there if they did.



GT Distributors? Is it a good shop, I've never heard of it.
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