The bulk of my meager collection has been bought Face to Face through B&M or Shows. But with the current environment, I’ve been searching the web. Several of the dealers I have contacted said the coin I was interested in is the same price whether paying by MO, check, or credit card. I thought when one used a credit card the merchant was charged a processing fee - about 2% or 3%. None of them would drop the price of the credit card fee if I sent a check. Anyone else experience this?
Not everyone gives a cash discount or charges more whether cash or credit even face to face. That said I would STRONGLY advise against sending dealers you have never met or dealt with checks or MO or PayPal Friends for payments. Use the CC to protect yourself
When any vendor accepts a credit card, they pay a 3% fee to the card company. That holds true for every restaurant, box store, gas station.... We all pay 3% to the card company. Because coin dealers work on small margins, they typically pass that 3% fee to the purchaser..... What you are seeing here is a dealer that has pulled out all the stops to make purchasing from him as painless as possible. These are lean times for everyone. He is doing all he can to help you make a favorable purchasing decision.
Well in some states it'll illegal to have different pricing so there is that too and if you aren't allowed to charge more for a CC most aren't inclined to charge less for cash.
I know Visa and Mastercard in particular have policies in place that stores can't charge more to someone using one of their cards. Of course, alot of places get around this buy offering a "discount" for cash. I know of a liquor store by me that had a sign posted that charged a $1.00 surcharge for using your Visa or MC. Somebody turned them in to Visa, and now Visa is no longer accepted there.
FYI, every card has different fees. 3% is popular but not set in stone. Some are more, some are less.
Oh I know. I been in an ongoing battle with credit card companies for two years in my office.... Long story... I was just trying to be succinct. Something I struggle with!
. So basically the 3% is “buying” myself protection from fraud, loss, etc. Good point - I hadn’t thought of it in that manner. The few coins I have bought online have always been with check. Never had any problems (so far) Yes, I must wait 2 weeks for it to clear — thats not a problem for me. In the past ( couple of years ago) I was always able to get a small discount for sending a check. The dealer made the same amount of money, as Randy said they just pass along the fee to the buyer. But if paid by check, a discount of 3% of $500.00 is $15.00. Just a way of reducing MY cost for the coins. I’ll be so glad when shows return! St Charles is in 2 weeks. Planning on attending. According to the web site they have added HEPA filtration system, sanitizing stations, distance protocols, etc and asking all to wear mask.
Many dealers online are trustable so checks are fine. If you buy from a new dealer, Google them. You can find reviews. Going to a show these days? No thanks. Whenever a state loosens the rules, the outbreak spikes big time. I'm not going to be a guinea pig. What state is the St Charles show in?
St Charles, MO. Annual summer show. 150 tables — all sold out. Dealers must be anxious to get out too. Missouri Numismatic Society 60th Annual Coin Show July 23rd-25th, 2020
In the past, CC companies (not states) prohibited charging extra for CC purchases, as a way to drum up business. I believe some laws have been passed in the last decade or two to make that clause illegal. I thought it was national, but I may be wrong. Accepting checks for payment brings its own risks and costs. I don't know how businesses figure that into their calculations, but I'm sure for a small (<$100?) purchase they'd rather pay the CC fees than deal with a check. Randy, I do remember having to have our central A/C outdoor unit replaced right after a big coin show. I was able to negotiate a nice discount by paying with the cash I brought home from the show. It was almost like using gold to pay for the service.
There's a ton of horror stories out there from people getting stolen from etc by paying like that even from bigger dealers. You have no idea what the dealers finances are at this point and your only recourse would be a costly lawsuit they may or may not could pay. If its an auction house like Hermitage, Stacks, Legend, Great Collections you're fine paying by check, random dealers no matter their reputation no thank you
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