Credit card reward schemes and surcharges

[kpc]

I'm finding it increasingly prevalent that more and more merchants are charging a surcharge for using a credit card; initially, it was only for AMEX and DC but now it is also becoming prevalent for VISA and MC as well; eg now my council rates inculde a 1% surcharge for Visa or MC use. So it costs me 1% extra (ie $0.01 surcharge for every dollar) to use Visa to pay my council rates; each dollar charged to my VISA earns me 1 QFF point:mrgreen:

So what are your threshholds before you use a non credit card way to avoid the surchages??....and hence, don't earn any FF points

 

[Flashback]

I'm finding it increasingly prevalent that more and more merchants are charging a surcharge for using a credit card; initially, it was only for AMEX and DC but now it is also becoming prevalent for VISA and MC as well; eg now my council rates inculde a 1% surcharge for Visa or MC use. So it costs me 1% extra (ie $0.01 surcharge for every dollar) to use Visa to pay my council rates; each dollar charged to my VISA earns me 1 QFF point:mrgreen:

So what are your threshholds before you use a non credit card way to avoid the surchages??....and hence, don't earn any FF points

It's a case-by-case basis for me, generally anything over 2% I don't bother with. It also depends on the transaction size. If it's a charge that I'm then passing onto someone else e.g. a customer it makes it a bit easier to swallow; it just reduces my profit on the item slightly.

 

[auriga]

1.5% for Amex, 1% for Visa.

 

[kpc]

1.5% for Amex, 1% for Visa.

Does this mean, at these surcharges, you will use you credit card to pay, or the surcharges have to be less than this amount for you to pay with your credit card?

 

[auriga]

At this level, I will consider using the card/s. It may depend on my mood at the time.... sometimes I do not feel I want to pay any surcharge at all, sometimes I just think of the miles...:mrgreen:

 

[ChrisFlyer]

I've actually done the maths behind it, and for what I use my QFF points for, I value them at 1.8 cents each.

So:

Amex ($1:1 QFF) - Pay a surcharge up to and including 1.8% (buying points at cost), unless Visa/MC is accepted without surcharge (and the Amex surcharge is higher than (not equal to) 0.9%), then I use V/MC. If a surcharge is charged for V/MC that's different to Amex, and the difference between the two is greater than 0.9%, I use Visa/MC. If it's less, I use Amex. If they're the same, and 1.8% or less, I use Amex

Visa & MasterCard ($2:1 QFF) - Pay a surcharge up to and including 0.9%