Your customers complain you are “stealership” trying to nickel-and-dime them for everything from PDI to credit card fees, meanwhile sources of financing are drying up and increasing exponentially leaves dealers in the middle… as usual. WalletHub recently conducted a nationally representative survey to delve into consumer perceptions… and responses regarding credit card processing fees confirm that dealers are in a damned tight spot when it comes to the credit card conundrum.
“Credit card processing fees have become all too common in recent years, popping up for everything from online and app-based orders to certain in-person purchases,” notes WalletHub Managing Editor John Kieran. “These fees, which can catch consumers off guard, have led to many people feeling like they are being nickel-and-dimed.”
However it is a “necessary evil” adds WalletHub Analyst Cassandra Happe. “It’s currently legal to add surcharges for credit card transactions in most states, so most people still need to carry an alternate payment method, like cash or a debit card, to ensure they don't waste money on processing fees. Half of Americans will still use a credit card even when charged an extra fee, though, due in part to the convenience of credit cards and rewards that can offset fees.”
Key Stats
Fee Fatigue: 85% of people think they are being nickel-and-dimed when they are asked to pay an extra fee to process a credit card payment.
Very Common Problem: 79% of Americans have been charged a fee for paying with a credit card.
Credit Card Boycott: Half of Americans say they will not use their credit card if they have to pay a fee.
Transparency Concerns: 48% of people feel that merchants are not transparent when charging fees for credit card transactions.
Confirming the fact that 85% of the survey respondents reported the processing fees were spurious and 48% felt merchants are not transparent when it comes to these transactions adds insult to injury. The complete results can be found at:
https://wallethub.com/blog/credit-card-processing-fees-survey/135074