Displaying USAT fee info ??

[Finaritwo1]

Hello Vending Family,

Yesterday marked my eighth month in my new Vending business. Eight of my machines have had USAT installed from day one and had been installed fora couple of  years prior. Today I was literally ambushed by 2 office managers from my best stop about the USAT fees added on when people use credit/Apple Pay etc...The leader of the posse was appalled that she had been charged $.10 cents in addition to her $1. for her chips. I was definitely off guard because up until this past Monday nobody ever inquired or seemed too concerned about the additional cost when using credit. This was the way the accounts were set up when they were transferred to me in the sale and I assumed it was industry standard so I never questioned it. Believe me, when I get the monthly  processing fees and charges the added 2-tier pricing helps in a big way. 

Does anyone have any info displayed on their machines informing customers that if they swipe it costs a bit more to use credit? I was going to inquire at USA Tech to see if they have anything corresponding to this that I could stick on. I don't like the fact that customers have to pay extra to use the convenience of credit but with a small beginners route I could never absorb the additional costs. It was actually kind of funny, when they approached me , the look on  their faces, arms folded, tinge of arrogance , practically lauding the fact that they were about to dump on me. 

I apologized and assured them I would see if there's anything I could do so its more transparent..

[cvending]

We currently use Nayax and ParLevel CC Readers. We also charge a 1o cent convenience fee for cashless transactions.  Nayax and ParLevel do provide labeling to put on machines to inform the customer prior to sales.  However, we chose to make our own labels to make it a bit more clear to the customers.   Our labels say " All cashless transactions will incur a 10 cent convenience fee per transaction."  Factory ones say "Cash purchases are discounted 10 cents per item." So if you want to buy a candy bar that is labeled as 1.00, would you only need .90 cash? Can you see how there could be confusion? I like our notice as it spells out that there will be an additional cost for cashless.  We really have not had any pushback from our customers. It is their choice.

[lacanteen]

That .10 is not a *fee*. That money is going to you, not USAT. It's called 2-tier pricing and it's optional. You can contact them to turn the feature off. If the feature is active you must disclose it. The black sticker pictured below is from USAT, the white one is the one we had made for our operation. 

I'll be glad to mail you 10 or so of the black sticker. Email me your address:  gbruss <at> mmsalescompany <dot> com

[Finaritwo1]

Thanks for the input. Cvending, factory labeling is definitely confusing. I had to reread that 5 times and it still makes little sense..

Lacanteen I sent you an email, thank you for the stickers in advance. 

[Jchunn28]

I made my own stickers due to the confusion that says “The displayed price is the .10 per item DISCOUNTED cash price.”  Some states actually forbid charging a convenience fee for cashless, but will allow a “cash discount” to be given instead. The rules in Texas were not that clear, so I opted to go with my own stickers. 

[Southeast Treats]

Offering cashless is an extra expense, but as you found out, customers feel entitled to have it at no extra charge.  I opted from the beginning to absorb the cost, but I do make sure my prices are high enough on all purchases to cover the cost.  (So yes, all the customers pay for cashless - just like any other store where you can use a card for payment - but the customers like it better!)  I am the oddball here on this, as most everyone else charges the extra dime.   My feeling is that I add the card readers to increase my business, so why turn around and charge people for using them and discouraging their business...

[AngryChris]

I thought your way too, southeast treats, but they keep using their cards, fee or not.  To me, it's the fee that covers the convenience of something that i get fee'd for constantly anyway.

[lacanteen]

12 hours ago, Finaritwo1 said:

Thanks for the input. Cvending, factory labeling is definitely confusing. I had to reread that 5 times and it still makes little sense..

Lacanteen I sent you an email, thank you for the stickers in advance. 

Did not get email and not caught in any filters. I masked the email to prevent bots from picking it up.

<at> is @

<dot> is .

Or, hover your cursor over my avatar and click message to send a private message here.

[joshnosh]

The majority of people under 40 do not carry cash and do not think twice about paying the extra 10 cents. Our sticker reads:

Prices displayed are for CASH discount.

Actual prices are 10¢ more per item.

[AZVendor]

Josh, that should say "Credit prices are 10 cents more", don't you think?  Unless 90% of your sales are credit and it is the standard.

[AngryChris]

32 minutes ago, AZVendor said:

Josh, that should say "Credit prices are 10 cents more", don't you think?  Unless 90% of your sales are credit and it is the standard.

Many states don't allow you to upcharge for using a card.

[joshnosh]

Yes, this

[joshnosh]

I don't think it's the states, it is the credit card companies that don't allow you to charge more to use their cards.

That is why  you see "convenience charges" at cash registers or minimum purchases

[AZVendor]

Actually, all card companies have agreed that two tier pricing can be used for small item purchases from vending machines.  

[AngryChris]

Then they must have agreed recently.  About 3-4 years ago, USATech told me that it had to be worded in such a way.

[Finaritwo1]

Private message sent, Thank you "Lacanteen".....

[57thTom]

5 hours ago, joshnosh said:

I don't think it's the states

Sure it is. The state controls how you charge for credit and how you do business unless you transfer money, services or product across state borders. 

Then it's the feds.

[putrevus]

On 5/3/2018 at 8:56 PM, Southeast Treats said:

Offering cashless is an extra expense, but as you found out, customers feel entitled to have it at no extra charge.  I opted from the beginning to absorb the cost, but I do make sure my prices are high enough on all purchases to cover the cost.  (So yes, all the customers pay for cashless - just like any other store where you can use a card for payment - but the customers like it better!)  I am the oddball here on this, as most everyone else charges the extra dime.   My feeling is that I add the card readers to increase my business, so why turn around and charge people for using them and discouraging their business...

You are spot on. We tried that two tier pricing but found out it discouraged people from using the Credit cards and also resentment that somehow we are robbing them.

 

[AngryChris]

7 hours ago, putrevus said:

You are spot on. We tried that two tier pricing but found out it discouraged people from using the Credit cards and also resentment that somehow we are robbing them.

 

I think it depends entirely on the location.  You could be charging 25 cents for a soda and charge an extra 10 cents to use the card and there are people that will feel ripped off.  You could be charging $1.00 somewhere else for the same soda and charging the extra 10 cents and there are people that won't care much.  Around here, it's pretty much the industry standard to use 2-tier pricing and there isn't much of an incentive to do without it.  I do, however, have a few locations where I eat the costs.