The new restaurant fraud

[SargeW]

I just read a new twist to the credit card world in the WSJ. After a long drawn out legal case, retailers will now have the option to reject any particular CC that they want. The standard practice from Visa and MC has been that if the retailer accepted any Visa card, the retailer had to accept every card that was from Visa. That includes all of the rewards cards offered by the CC company. The CC company then charged the retailers higher fees because of the reward card. The retailers just won the right to reject any one card they don't want to honor. The CC companies are not happy about the change, and if retailers will risk losing a customer if they reject a particular card.

 

[DonTom]

Tips are considered offensive in Japan.

Yes, which seems strange to me because the Japanese see it as being offensive to not accept a gift--even if in cash.

 

[Jackiemac]

We've seen a lot of businesses out West add the CC fee if you don't pay cash.

 

[John From Detroit]

We've seen a lot of businesses out West add the CC fee if you don't pay cash.

Same here in MI. I usually pay cash.

 

[Mark_K5LXP]

So what happens when a patron is asked to pay cash and they don't have it? Most days I don't have enough cash for a happy meal much less a spendy restaurant meal. So am I sent away or how does this cash pay model work?

Mark B.
Albuquerque, NM

 

[DonTom]

So what happens when a patron is asked to pay cash and they don't have it?

I wondered the same thing, but I had more than enough cash, so I wasn't concerned at the time.

Some restaurants will accept a check.

There is a Vietnamese restaurant in Auburn that I often eat at. On the front door, it says "cash only--no credit cards accepted--ATM inside".

This is the Pho King Restaurant, and it really is Pho King Good.

-Don- Reno, NV

 

[bigbAZ]

I wondered the same thing, but I had more than enough cash, so I wasn't concerned at the time.

Some restaurants will accept a check.

There is a Vietnamese restaurant in Auburn that I often eat at. On the front door, it says "cash only--no credit cards accepted--ATM inside".

This is the Pho King Restaurant, and it really is Pho King Good.

View attachment 1955152



-Don- Reno, NV

I think they are related to the makers of the KungFuKing Socket

 

[LarsMac]

Yes, which seems strange to me because the Japanese see it as being offensive to not accept a gift--even if in cash.

A gift, and a tip are a universe apart. Especially in a culture like Japan. Many restaurants throughout Europe are equally reticent to accept Tips.

 

[DonTom]

Many restaurants throughout Europe are equally reticent to accept Tips.

By far, most restaurants in the world do not expect a tip. In some countries, it is considered the same as a bribe and is illegal to tip (illegal here too, in a few cases, such as tipping a cop).

IMO, we should stop tipping and expect the restaurants to add the 20% into their prices.
Now, many places are expecting a tip for food to go, and everything else.

There are mainly only five countries that expect tips.

USA, Canada, Mexico, Australia & South Africa.

Of the above, the USA and Canada expect the largest tips. 20% average. 10% or less in the other three.

A few more, but only in the tourist trap areas in countries where the locals never tip.

-Don- Reno, NV

 

[Rene T]

IMO, we should stop tipping and expect the restaurants to add the 20% into their prices.

I don’t agree with that statement. I tip a waiter or waitress by the quality of their work. If they bring our food and I don’t see them again until it’s time to leave, they get a small tip. Now if they keep coming back and ask if there is anything we need and they keep my water glass full, then i’ll give a big tip. And they have to socialize and be friendly.

 

[DonTom]

I tip a waiter or waitress by the quality of their work.

AFAIK, most USA restaurants split their tips with the other waiters/waitresses. It all goes into the same pot if you get decent or lousy service.

I prefer the way they do it in Hong Kong/ China and perhaps most other countries. You are NOT assigned a waiter, and every waiter/waitress serves you. Much better than anything I have seen in the USA, yet they do not get tips.

IMO, you get MUCH better service in the many countries that do not have tipping.

And now here in the USA most places expect tips in advance, even on food to go, where you're getting no service. Tipping is getting out of control in the USA.

FWIW, I do tip generously, as I figure the waitresses/ waiters are usually underpaid. But not everybody does. Some will not tip regardless of how great of service they get.

That's why I think they should just add it to the price and not accept tips.

Some restaurants in the USA have already started NOT accepting tips.

-Don- Reno, NV

 

[Old_Crow]

I recently had over $3500 worth of work done to my coach over a period of a week. The place that did the work wasn't going to charge me the precentage for using a card, so when I found this out, I wrote a check instead. Didn't cost me more and the business got their whole bill covered.
What surprised me is when I tried to tip the mechanic he almost wouldn't take it. I watched him work on my coach for 5 days and I'm here to tell you that job about handed him his butt. I told him as much and he said, "well, I get paid by the hour, not flat rate". I told him I didn't care and he should just take his girlfriend out for a nice dinner. He accepted after I said that.

 

[DonTom]

Didn't cost me more

It sure did!

I get money back in one way or another with all the credit cards I use. Especially with larger amounts, I ensure that I use a CC that offers a good return in one way or another. And I never pay interest or fees on CCs. Using checks or cash is just throwing money away.

An example, I use my Harley Visa to get gasoline for my RVs, because it gives me three times the points. They pay me back in HD Gift Cards to use at Harley shops for anything, service, parts, or accessories. So I always use those to get oil, oil filters, and other stuff for my Harley. I never use anythign else at a Harley shop other than these gift cards, and I always have more gift cards than I can spend.

In similar ways for all my other CCs. I often get my groceries the same way, such as with my Kroger card. I would use this one for larger amounts such as your $3,500.00

I will only use cash if the place gives a discount for using cash, or only accepts cash, such as the Pho King Good Restaurant I often go to in Auburn.

Usually, the only thing I use checks for is my quarterly payments to the IRS. Four checks per year.


-Don- Reno, NV

 

[Alaskansnowbirds]

In the future businesses will be able to refuse CCs that have cash back or gift cards like Don mentioned. Visa & Mastercard lost a class action law suit. There is nothing free. Someone is paying, and it's you. If you think the CC companies are eating what they're returning to you, you're crazy. They "charge back" the merchant that you bought the item from for what the CC company gave you.

You pay in the end because the merchant upped the price of the item to cover this. You pay with a CC, the CC company takes their cut, gives you your "cash back" then gives the merchant the balance. The money changers never lose a dime. What you got back you paid for upfront with higher prices, you just got your own money back. I wish all merchants had a cash price and a CC price. Maybe people would realize how much they are paying just to use a CC.

 

[Chef Duane]

Usually, the only thing I use checks for is my quarterly payments to the IRS. Four checks per year.

-Don- Reno, NV

I think I wrote 2 checks this past year (so far). Can't remember what they are for. I almost never write a check.

 

[DonTom]

There is nothing free.

There is no need to remove the word "free" from all the dictionaries. It normally means you're not paying--somebody else is. But yeah, they are in business to make a profit, so they will most likely jack up their prices if they can get away with it. But why should I care when I am agreeing with their price by being there? Everybody is happy this way, the CC company, the restaurant as well as me. Those who use cash are the real losers here. The CC companies bribe me to use their cards, and it does work. If restaurants want to lose bussiness by not accepting CC's that is fine. IMO, some shouldn't accept CCs, such as the Pho King Good I mentioned. They get crowds of customers as it is. They really should jack up their prices, too, to help get rid of some of the crowd. There have been a couple of times I went somewhere else because of the long wait for a table. Obviously, their not accepting of CCs was a good idea.

But most restaurants do not have that problem and will lose at least some bussiness if they refuse CCs. They accept the CCs for a reason.

Somehow, I did not expect that CC lawsuit to do much before I read your link. But I did read it, and I noticed this line, which I strongly agree with:

“In the real world, not a lot is going to change.”

-Don- Reno, NV

 

[DonTom]

I think I wrote 2 checks this past year (so far). Can't remember what they are for. I almost never write a check.

I forgot in the previous post that I paid by check for my newest motorcycle for just under 20K$ last June. Motorcycle shops will often let a customer pay with a CC, but then the customer pays 100% of their CC fee. So I save around 700 bucks by using a check, which will be a lot more than any benefit I get from using the CC.

-Don- Reno, NV

 

[NY_Dutch]

I have never worked in anyplace that has "had a problem with their credit card system and needed cash." Yeah, that sounds kind of fishy to me.

Our favorite local restaurant has had a temporary loss of Internet from time to time over the years that also takes down thier CC terminal. The sign that gets posted says that cash, checks, and IOU's with ID are accepted. When we're there, I can quickly verify that the Internet is in fact down since my phone connects to thier WiFi automatically.

 

[Chef Duane]

I forgot in the previous post that I paid by check for my newest motorcycle for just under 20K$ last June. Motorcycle shops will often let a customer pay with a CC, but then the customer pays 100% of their CC fee. So I save around 700 bucks by using a check, which will be a lot more than any benefit I get from using the CC.

-Don- Reno, NV

Actually I do remember when I wrote a check. I traded my wife's car ('20 Equinox) some months after she passed and then used that and wrote check for the balance to buy my 2023 SUV. That was March of '23.

 

[TheBar]

I am totally electronic. All my bills (even RV storage) are paid automatically each money using two 2% cash back cards. The only bills I pay are those two credit cards using my bank's bill pay system. My various sources of income are all electronically deposited. All I do is monitor money in/money out.

I have not written a check in 3 years. I have not paid cash anywhere for at least 5 years. Not even at vending machines. I only use credit cards with a 2% cash back. If I get charged 3% for using it that's ok because I'm really only paying 1% more. $1 on a $100 charge won't break my bank. But I do pay some tips in cash.

I know exactly where every penny goes and I have the paper trail to remind me.

Why aren't you paying for every single thing with a 2% cash back card? They have zero monthly or yearly fees so it costs you nothing to use them.