I’ve been at the computer all morning paying sales tax, prepared food tax, credit card processing fees and more.
Here’s something I did not know:
You know all those great reward cards? The ones that offer 3% cash back on all of your purchases? Did you know that the BUSINESSES you buy from have to pay that cash back!? Not the credit card companies who advertise them. And we businesses have to pay them without notice! Matt and I just got our first credit card merchant statement and found a $500 fee towards rewards cards.
I am always happy accept a customer’s money fees or not, but if you’re indifferent between credit cards and cash, pay cash! I know I will do more of that for local business from now on (and save my cards for big purchases online and stuff).
I unglued myself from the computer to have some lunch – mom’s pasta salad over greens!!
Delicious the next day!!
I’m also becoming an iced decaf coffee addict. It’s delicious and FREE – and no one drinks the decaf so it’s either down the drain or in my mouth! I’m having one big mug a day when I get to work, but sometimes I get a lunchtime refill too. I figure the antioxidants must be good for me, and it’s calorie and caffeine free (I drink my iced coffee black). Yum!
I didn’t really want anything else for lunch, but I’m still a wee bit hungry, so I’m sure an early afternoon snack is already in the works.
See ya!
Lisa @ Sunny Seed Stories says
Good tip. Cash it is–especially at Great Harvest! 🙂
Cait's Plate says
WHAT! I definitely did NOT know that about cash-reward credit cards! That makes me really angry!! I will definitely be a cash-carrying citizen from here on out!
And I totally agree – next-day pasta salad is SO good. All the flavors have had a chance to sink in and the pasta is so chewy and delicious 🙂
kaila @ healthy helper! says
I love leftover pasta salad! Always tastes better the second day after the flavors have had time to meld together! YUM!
cathy says
love that bowl, love that mug, love that you’re saving the decaf from the drain, love the promotion of paying CASH!!! yes!
colleen says
Had no idea about the cash back cards. I too amused the card company’s were paying it not the businesses. Very misleading indeed. I’ll need to remember that.
Melissa @ HerGreenLife says
Wow, I knew businesses lost something to credit card companies just for accepting credit cards, but I had NO idea they have to eat the reward fees, too!
We already try to use cash as much as possible when shopping and dining at small, local businesses, but this will increase my commitment. I’ve been annoyed at my credit card company since last fall anyway, and I’ve felt more comfortable carrying cash since we used cash to pay almost all of our expenses when in Italy this spring.
Claire @ Live and Love to Eat says
Your mug looks angry about the lack of caffeine! 😉
Sarah says
Hi Kath! Love your blog! I heard that “decaf” coffee still has up to 40% of the caffeine of “real” coffee. Not sure if that’s true, but it definitely changed the way I think about my daily decaf doses.
Amanda says
It’s true! Decaf coffee still has more caffeine that black tea and is far from caffeine free.
anna says
Yeah, decaf isn’t totally caffeine free, but according to this it still doesn’t have much:
http://www.mayoclinic.com/health/caffeine/AN01211
Holly @ Food, Make-up, Hair says
Mmm, the pasta salad looks good! Do you think we could get your mom to share the recipe?
Mom says
Bow tie pasta and LOTS of feta (Maybe two cups for 12 ounces of pasta.) Then add any veggie type things you want. I put in tomatoes, carrots, black olives, snap peas, corn, and chickpeas. Oh and I had some leftover parsley. I blended it together with Garlic Gold olive oil and Greek yogurt. I only had a cup of Greek yogurt–could have used a little more as it was kind of dry. Maybe some vinegar or vinaigrette? Salt and pepper. Make a day ahead for best flavor.
Holly @ Food, Make-up, Hair says
Thank you Mom KERF!!
Angie @ Musings of a Violet Monkey says
Love the Tiki mug – hilarious!
I had no idea about the “rewards”… I always *try* to pay cash at GH, but definitely don’t always. If I don’t have cash, I use my debit card though – no rewards there!
~
Lindsay says
I never have cash when I go to the grocery store or to buy food, I dont know why but I personally dont think it is very convenient to carry cash. I know that I will try to carry cash more often, but I will use my debit card if I need to! 😀
Brittany (A Healthy Slice of Life) says
Crazy- I didn’t know that about rewards cards! How can they do that, though, without giving you a chance to opt in or out?
Lisa Fine says
Wow, I had no idea about that with rewards credit cards. I can see how it can especially hurt small businesses, and will keep that in mind. I usually try to use cash when I’m at a locally-owned place, anyway, or if I’m only buy a small amount of purchases.
And no milk or anything in the iced coffee? I like iced coffee once in a while, but I like to add milk to it.
Jenny @ Fitness Health and Food says
If I had all that iced coffee available to me I would be drinking it non stop! 😛
So sorry about the fees it’s a great reminder to us to avoid using them when paying for goods from small businesses!
Maria @ Oh Healthy Day says
I’m shocked. I knew that businesses had to be a fee for credit cards, but I didn’t realize they had an additional fee for cash back rewards. As someone who uses her reward credit card for ALL purchases, I will definitely reconsider when I’m shopping at small businesses. Thanks for the info!
Kate (What Kate is Cooking) says
I drink decaf iced coffee like it’s my job 🙂
Courtney @ The Granola Chronicles says
I did not know the businesses pay the cash-back rewards. Definitely something to keep in mind when shopping at small, local businesses!
Kate says
I always try to use cash at small businesses! (And I try to shop local when possible!) Can you do a $10 minimum for credit cards, or would that hurt sales?
LindsayH says
That would violate the merchant agreement with credit card companies (minimums or favoring/discriminating against certain types of cards).
Stormy says
It may violate the merchant agreement, but I see plenty of smaller businesses doing it these days. I also see a major gas brand (probably a locally-owned station) advertising different prices for cash and credit.
Tasha says
I’m curious as to what you mean Lindsay by violating the merchant agreement? I’m not sure if it’s exclusive to California, but here, many people have a minimum purchase for cards. It usually is $10 or $20 or more before CCs are accepted. And Visa and Mastercard are standard whereas American Express and Discover tend to not be accepted everywhere.
td says
As long as the merchant displays separate prices for cash and cc purchases, it’s usually ok for merchants to charge different prices for the same product. But the benefits of credit cards are stuff like not having to make daily trips to the bank, losing cash from the register (sticky fingers & incorrect change) and potentially advertising to thieves that large amount of cash is kept on the premises if a store display cash-only sign.
Leanne says
A lot of merchant services agreements prohibit businesses from setting a minimum purchase. As a former small business owner in Virginia I know this is true. Many businesses that do so are just choosing to ignore their agreement for the sake of profit. Nothing is as frustrating as ringing up something as small as a .50 purchase on a card knowing that you are not making a cent on that sale.. and possibly even losing money. American Express and Discover card typically have higher merchant fees which is why many businesses choose not to accept them.
KathEats says
Yeah, and I wouldn’t want to discourage purchases!
jenifer says
What about a cash discount? Nothing major… maybe 2%? I think alot of your clientelle would love this… in fact, maybe it might generate a little extra business, maybe offering it one day a week?? Like Cash Saturday? Just random rambeling I know… but that’s what we do. We offer our customer a 5 % discount if they pay in cash.
Holly @ The Runny Egg says
Cash is always best!!!
But I had no idea about businesses paying for those rewards checks — that is crazy.
Freya (Brit Chick Runs) says
Woah, I had no idea about the card/cash thing! I’ll stick to cash now …
OH I am soo addicted to iced coffee too! It’s the best – I have one every day 😀
Liz @ Tip Top Shape says
That’s weird with the cash reward cards. I will definitely keep that in mind next time I go to use mine!
Amy Lou says
Kath, do you guys have to pay a transaction fee when customers use debit cards, too? I usually don’t carry much cash around and most often use my debit card for purchases. Just wondering–I hate to take a bite out of vendors’ profits. Thanks.
KathEats says
Yes, because we run all of our cards as credit 🙁
Baking 'n' Books says
Y’know…you should display that in your store somewhere for customers to see it! I don’t know…something along the lines of encouraging cash and change as much as possible versus cards and why?…without sounding “preachy”.
I’m sure most customers would think twice on it then.
Amy Lou says
I had no idea! This is good information. Thanks. A waiter friend of mine once told me that his restaurant took 3% out of his tips when the customer used a credit card! So unfair that the burden for the fees is on the “little guy” when the cc companies get to rake in the profits… KERF: Food AND Food for Thought.
Hillary says
Wow. I was going to suggest this same thing. I had no idea!
Emily says
I work at a small local bakery and we have a polite sign up on the register that says “Under $5? We appreciate cash!” A lot of times people will say, “Oh, I don’t have any cash, I’m sorry!” and while we never make a big deal out of it, I think people are a little more mindful. Also, depending on the person, I’ll mention that it helps us as a small business, then tack on the “But almost no one carries cash these days!” and no one is ever offended. Sometimes, the customer will just see the sign, feel bad, and buy more!!!!
Karen says
That’s a really tactful way to suggest cash to a customer, when practical for him/her, Emily. Not making a big fuss over it is key though. Maybe this will work for you, Kath?
Rachel says
I’ve seen this before, too, and thing it’s a great idea – doesn’t deter me from purchasing or make me feel guilty if I don’t have cash, but it makes me aware and means I’ll probably bring cash the next time.
Gina @ Running to the Kitchen says
Wow, I had no idea about that on credit cards! good to know.
Khushboo says
Pasta salad is def yummier the next day: more time for the various flanked to get acquainted 😉
Natalia says
So…true story: I’ve totally missed that mug 🙂
Averie @ Love Veggies and Yoga says
Omg I have that mug! I did a review/giveaway for Bora Bora bars about 18 mos ago and they sent me that mug with their bars.
Biz taxes and dealing with it. Funny I am on my way to the biz tax office today! I have to renew some tax info once a year…and today is that day. The irony of this post. Literally leaving my house to go there…now.
Taxes. I hate them.
Cash. I try to use it always. Especially for small businesses…it helps everyone out, so much!
Laura @ Blogging Over Thyme says
I work for a food truck and I’ve found that out as well since I started working. I definitely am more conscious of using credit cards for really small purchases (less than 5-10 dollars) and in general, because I feel bad for small businesses. Good to mention! 😉
Laura @ Sprint 2 the Table says
I’m shocked about the rewards cards! No wonder my fav lunch spot won’t accept cards of any kind. After she installed an ATM it’s no big deal at all.
Is there a fee for debit cards used as credit cards?
KathEats says
Yes there is 🙁
Summer @ Well-rounded Hippie says
I think it’s interesting, that at least for me, cool coffee is yucky, but iced coffee is great! Why is that?
Christine says
Thinking the same thing!!!
Jen G. says
That’s crazy! Of course, I mostly use my Amazon rewards credit card at Amazon. So I don’t feel too bad!
Aine @ Something to Chew Over says
I had no idea! That seems really unfair.
Your pasta salad looks yummy. Thanks to your mom for sharing with us in the comments!
Kiran @ KiranTarun.com says
I never knew about the cash back info. Thanks for sharing. Definitely changed my views on spending at local businesses.
Annette @ EnjoyYourHealthyLife says
oh WOW< had no idea about the rewards thing. That is a bummer!! Love greens 🙂
Margo @ peanut butter trees says
Decaf coffee is the way to go if you need something to drink during the day- I love it iced black too, so you don’t have to worry about getting overly buzzed on the caffeine or getting overly filled with empty calories.
Baking 'n' Books says
Taxes suck. It cuts your pay-cheque in half. And you have to be sure to save during the year so not to be blasted at the end.
I agree with Donny Osmond who recently said that if there’s one thing he’d like the government to do would be to reduce the crazy taxes on people (everyone) working hard for their money.
Of course I’m not American…but I think it should fall under any country 🙂
J3nn (Jenn's Menu and Lifestyle Blog) says
Reduce taxes = YES!! For some people, 60-65% of their money goes to taxes in one way or another. Income, payroll, sales tax, marriage tax, death tax, school tax, state income, property tax, etc., and on and on. It never ends!
Baking 'n' Books says
Yes. It’s very frustrating and sad actually. And the more money you earn, the more taxed you are…makes you wonder what the point is sometimes.
Now I get why some celebrities try to hide it and end up owing millions in taxes! 😉 – course that ended Wesley Snipes and Richard Hatch (survivor) in jail…so not the wisest idea!
J3nn (Jenn's Menu and Lifestyle Blog) says
I am by no means wealthy, but it drives me NUTS when I hear a political figure–or anyone for that matter–proclaim that the “rich” (anyone that makes over $250k/year) are not paying their fair share. REALLY? Do “rich” people somehow use more services (police, fire, etc.), travel more roads, or get more military protection than people who earn less? In reality, more taxes = bigger government = more unnecessary spending + laws/regulations/liberties lost. Ultimately, they could take 100% of our income and we’d STILL be in debt because with a bloated government, spending is completely out of control. 😐
lynn @ the actor's diet says
i’ll drink that decaf too!!!
Christine says
Absolutely loving my iced coffee lately. Its saving me some money as well because I make a pot of stronger coffee and put it in the fridge. Easy to take to work and enjoy! I add a splash of almond milk 😉
Thanks for the credit card tip. I have earned over $500 in credit cards rewards, so I am definitely a culprit of using my card for everything. I will use cash for my local businesses for sure.
Christine (The Raw Project) says
Yikes, that’s crazy about credit card rewards! I rarely use them for small purchases and will keep that in mind.
Alex says
Pasta salad always tastes better the next day in my opinion 🙂
gwen says
This really belongs under this morning’s post but I like these glasses to avoid condensation……
http://www.crateandbarrel.com/search.aspx?query=bodum%20pavina#
Nancy-The Wife of a Dairyman says
Wow, a $500 unexpected bill…..I’m sure that was a shocker! I didn’t realize the merchants paid for that either, good to know!
I love my decaf coffee, it’s all I drink, but I can’t do it black unfortunately:)
Enjoy your afternoon!
Alicfe says
I’ve known about the fees for awhile. The thing that made me laugh is the last time I got my haircut I forgot my wallet but luckily had my checkbook. I know accepting checks can be risky in case they bounce but they don’t have fees attached to them. The lady was like you are lucky I’ll accept this clearly unhappy. Like I said I get the risk but it’s a local check, she has my name,number,address. I really think she should want that risk for the added money for her bottom line. But that’s just my opinion…
Do you have agreements with the credit card companies that you have to charge the same amount for credit card and cash? I know some gas stations offer a cash discount but I have to imagine there’s something keeping other businesses from doing the same.
Christine says
I accept checks for my small business but it is a risk because if a client’s check bounces, I have to pay a $25 fee. I’ve only had that happen a couple of times in 10 plus years and the client has always been happy to cover that for me, but someone could just disappear and not pay it and it would come out of my pocket. I had to add that one to things you find out after they happen to you. . .
Angel7 says
I did not know that about reward cards.
Your mom’s pasta salad looks really good!
Once an iced coffee lover, always an iced coffee lover 🙂
http://faithfulsolutions.blogspot.com/
Angela @ Eat Spin Run Repeat says
I’ve noticed that a lot of salads are better on their 2nd or 3rd day! Have a great afternoon Kath!
Sarah says
Also you could work to change the credit card companies – a conglomerate of small business owners – versus passing it on the consumer 🙂
M says
this is quite a hot button issue right now if you google “interchange fees”! One of those issues that’s easy to lookover in the news becuase it’s hard to understand until you have a real-world example. it’s a bit of a political issue so i don’t mean to start anything, just thought people may be interested to learn more about it if they wish!
Mauimandy@The Grains of Paradise says
After 3 plus years of no coffee I’ve been getting back into the habit. I’m finding that I much prefer it cold though….
Annie says
I’m sorry to hear that credit cards take a bite of profits. However, I believe there is research which shows people tend to spend more (and be more willing to add impulse items to a purchase) when paying with plastic. Perhaps that evens things out some?
Erin says
This is an interesting point–I definitely do buy more in some cases (especially at locally-owned businesses) when I don’t have cash. I feel bad charging purchases under $5 or $10 (depending on the type of business), so I’ll buy more to get it over the hump.
Of course, this is a great reason to pay cash for everyone, right?! Ha! But sometimes I just don’t have cash on me, or at least not as much cash as I need for the purchase.
Sonnett says
llloooove leftovers!! the tastes seem to evolve and develop more and especially the texture of pasta that has had the time to ‘mature’ and blend with the other flaves! must admit- i haven’t had pasta for over a year now….. just have not had the ‘craving’ for it, but you might of just triggered a taste bud … or seven!! asfor the crocery today – i l.i.k.e!!
btw kath – hope you have an answer / suggestion for me – what can i eat/ drink to release slight water retention? maybe a good recipe of yours you can suggest ?? struggling at the mo for some reason…. not nice 🙁
KathEats says
Less salty foods (I’m sure you know that) and actually drinking lots of water – celery, cucs, watermelon – will help!
Kim says
thats crazy — i hardly ever carry cash, but maybe i should start for the sake of helping out the small businesses at least. thanks for the heads up : )
Elaine says
Do you know how your coffee is decaffeinated? I know sometimes caffeine is removed using chemicals, so I was just wondering if yours is made using a more natural process.
KathEats says
I don’t – and that’s one of the reasons I haven’t bought it religiously at home. But since it’s here, it’s here. I don’t think it’s the CO2 special way
claire says
credit card companies are snakes.
Christena says
Agreed. I get so angry when I think about it. My husband and I refuse to use credit cards. I don’t even carry one. I do use a debit card and hate that they cause fees as well. Just another motivation for me to use cash when possible.
Mindy says
I recently discovered your blog doing my normal surfing of Health related topics. I have to say, although this is kinda creepy, I read your blog and check it more than once a day to see what you have been up too. I am an upcoming sophomore in college studying Nutrition. You’re great person- all around! And such an inspiration 🙂
*HEALTH FO LIFE!!!
-Mindy
KathEats says
Welcome!
Jane says
What an excellent idea – pasta salad over greens for lunch! I know what I will be having tomorrow!
Maggie @ Say Yes to Salad says
Wow, no I did not know that the businesses pay! That is ridiculous. I may sign up for a card with a different kind of rewards, like miles, if that means the businesses don’t have to pay. I put almost everything on my card mainly for organizing purposes.
Maria @ Beautiful Busy Bee says
How does your mom make her pasta salad? It looks great. 🙂 Sorry that you have to deal with people’s fees!! I’ve never had a credit card so I’m not an offender in the least. 🙂
KathEats says
She posted the recipe above!
Katherina @ Zephyr Runs says
Yikes! I knew there was a fee but had no idea about who was responsible for rewards. I don’t have a rewards card so it doesn’t matter a whole lot to me, but I spread the word! How misleading.
Kristi @ Hiding in Honduras says
My husband and I used exclusively cash on our recent visit home to the States…people looked at me like I was crazy when I took the time to count out correct change and actually use paper money! I like the convenience of a debit/credit card but not if it is hurting the “little (wo)man”!
Ellie@fitforthesoul says
oh danngg I had no idea!! But I’ve always preferred to use cash and I think I always will 😀 I hope the reward stuff don’t make businesses suffer..?
Katelyn @ Chef Katelyn says
That mug is sickkkknasty. Is it from Hawaii?!
I had no idea about the rewards cards thing! I don’t even have a credit card, so I don’t have that issue, but wow…I will be sure never to get one of those in the future.
katie @KatieDid says
Where I used to work we had a 10 $ minimum for cards to try and defer people from using them. Not sure if as a corporate chain your allowed to, but I know that helped lessen some of the costs associated with credit card use.
Becky says
Hold on a second KERF community, before we all cut up our credit and debit cards let’s take a moment to remember that many businesses (small and locally owned included) have flourished due to the ability of card acceptance. On top of that, processing electronic transactions doesn’t happen magically! It costs the companies something to make sure those transactions can happen and that’s what they’re charging you for. On top of that, the banks/credit card companies assume ALL the risk while the merchant is guaranteed funds. That’s worth something! They are providing a service/product for which they are charging for, just like baking and selling bread.
KathEats says
I agree – we are very glad to accept credit cards (including AmEx!) but the rewards thing was not only like 100x as expensive as the normal fees to cover the company’s work, but it was a total surprise to me and feels more unfair.
E says
I agree. The normal fees for card use seem acceptable, but it’s very shocking that the reward fees are payed by the business… I actually do not use cards that do reward programs, so guess anyone would be happy to take my card 😉
E says
Oops…paid!
Lindsay says
I agree with you Becky! I personally use my credit card / debit card more than I EVER use cash! It is also the way that my parents are able to have my buy groceries as they can give me their credit card and dont have to worry about transferring money or getting cash! I personally appreciate the availability of credit cards and I really dislike when I cannot use my debit/credit card!
lauri (redheadrecipes.com) says
Restaurants have to pay that 3% tax and some take it out from the server’s tip! I need to be better about tipping in cash…
I’ve given up reg coffee, can’t stand the ‘jitteryness’ (is that even a word? Ha!). Decaf only for me 🙂
Cait @ Beyond Bananas says
Wow!! I totally did not know it fell upon the businesses! I do not like that one bit! Sounds like the credit card companies are being SUPER sneaky and I think that is awful!
Namaste Gurl says
Mmm, there’s nothing like mama’s cooking!
Happy afternoon:)
Lisa @ Fit in the Midwest says
I have some of those types of credit cards and I did not know that. I will definitely use cash at small businesses from now on because of your post! Thanks for the info.
Vicki says
Wow, that’s the final nail in the coffin about carrying cash more often! That’s too sneaky. I’m curious, though, about how they can get away with that?
Susan (Oliepants) says
I had to learn the same thing. Once we started accepting credit cards, the rewards cards charge a much higher percentage than a ‘normal’ card. It was disappointing to see that the credit card companies that advertise that they give back to the customer was really a lie altogether. It’s the businesses that have to pay. I’m all about rewards, but when I found out it was done this way – I wasn’t very happy.
Laura @ Cookies vs. Carrots says
I never knew that! Crazy!
Johanna B says
I knew that credit card co’s take money from businesses but not about the cash-back cards. I now have another reason to be glad that I don’t use credit cards for my daily purchases. I do have one for online purchases such as OpenSky.
Simply Life says
oh wow, I definitely didn’t know that -good to know when I shop at local places!
Sonnett says
they should actually educate and explain the terms and conditions with you beforehand extensively – it’s part of their responsibility asa service provider ?? i have learnt my lesson with ccards and therefor i have one…. in the freezer…. reason being that it has to thaw out from the ice, unwrapped out of the baggie and after that i have had time to reallly think and ask myself…. do i really need it? most times the answer is the blessed ‘no’…. so back into the freezer it goes again… crazy -but controls me 🙂
Carly says
That’s why some companies are picky on what cards they take if they take them at all. Or, they have a credit card minimum to make it worth the fee.
Katie says
I knew business owners had to pay credit card fees, but I didn’t know to what extent. I almost always pay with credit cards because it helps me track my spending, but I think twice if it’s a small amount.
Molly @ RDexposed says
Wow, very sneaky of credit card companies!! How much does it cost you with a debit card swipe?
Cat says
Welcome to the world of small business! It’s so eye-opening to see all the costs of doing business! I totally feel the same way and whenever I have friends that complain about businesses not accepting cards, I definitely try to help them understand why!
Cat says
Oh, by the way, Google and check out Heartland Payment Systems. We switched to their processing after years with a Bank of America merchant account and we now pay a lot less for our processing fees now!
Sarah @ Food and Love Diaries says
Sometimes leftovers are exactly what you need!!
Anne @ Baking Me says
Love your iced coffee mug!
vegancouchpotato says
Me tooooo! I am a fan of iced coffee 🙂 The pasta salad looks great!
Chelsea @ One Healthy Munchkin says
I knew that accepting credit cards costs a business money, but I had no idea that the business has to pay the cash back – that seems really unfair!
rumfunandsun says
Did Greg Brady give you that mug?
I can’t believe they don’t at least warn you about the cash back thing! Craziness!
chelsey @ clean eating chelsey says
Wow. I never knew that. We love credit card rewards in my family, but now I’m thinking twice!!
The Healthy Hipster says
Pasta salad over greens is such a great and simple salad idea! I never make it because its too heavy for lunch but mix it with somethin green and im a happy gal! 🙂
Lauren says
True about the credit cards, unless you use your line of credit from the institution you bank with. They offer rewards that are paid from the bank, not the businesses. So if you use your primary line of credit from your financial institution, you are not hurting the businesses and you are using credit to your advantage.
Julie H. says
‘Heck to the YES’ about the coffee! 🙂
Amy says
My husband has owned a restaurant in New York State for 15 years and he was shocked when I just read that to him! Perhaps it is a Virginia thing and you are stuck, but he suggested that you look into a different credit card vendor….He has never had to pay such a fee (THANK GOD!) I know it’s hard enough to pay the fee for the transaction– but he has had some nights where there it has been totally busy and there’s only under $200 in the drawer! It’s a credit driven world, sad to say! Good luck- hope you can find a way out of that.
Hannah says
I love cold pasta so much more than hot pasta 😀
delia says
That totally sucks about the extra charge on the rewards cards. Paying for the rewards should be out of the funds of the credit card companies rather than the businesses since they are the ones advertising them.
Vanessa says
WOW, I had no idea about that. I will definitely make an effort to use cash as much as possible!
shannon says
I accept credit cards on line and in person with my soap business and I have never had a “bill” for cash back rewards. This is very surprising! Maybe it is indeed a state wide “thing”. Or check out the fee again…are you sure it’s not for something else? This sounds soo fishy…. $500.00 for 1 month of cash back rewards, that you didn’t know anything about? I would be on the phone with the charge company ASAP in the A.M.!!
K says
That’s roughly 45,000 in rewards cards (I think more actually) yes? That doesn’t sound right to me.
KathEats says
Well some of them are only 0.5-1% and there are other restrictions so it wasn’t just a blanket 3%
Kris says
So by my math that means you did even more than $45,000 in rewards cards sales! Sounds like business is booming. Great problem to have!
KathEats says
No, it wasn’t that high! I’m not sure if the exact reward percentages or cards with rewards – I can just see the breakdown per card type and total.
Ashley @ This Is The Place says
Wow, I had no idea about the credit cards. Buuuuuut that does make me feel a lot better about the fees that places charge to use cards. Maybe you guys should do that? I know a number of places charge 25 or 50 cents on charges under $10 or $20.
Carey @ Positively Blonde says
Wow, that sounds like such a scam!!! I can’t believe that knowledge is kept so secretive!
Angela says
Wow I thought it was the credit card companies who paid the cash back to customers. This will definitely make me think before getting one of those as I use my card a lot for convenience. (I also spend cash too easily)
The salad looks great – how do you make leftover look so good? 🙂
Bec says
We own a retail business and have NEVER had to pay cash back rewards. I have also worked in banking for over 15 years and have never heard of such a thing. I think you are mistaken. Perhaps call your credit card processor and inquire.
KathEats says
Definitely not mistaken. I called and talked to them about it
Megan (Braise The Roof) says
You might want to shop around your credit card processor! I also have to process all of the cc fees where I work and it’s a standard fee on V/MC and slightly higher on Amex/Discover, but we’ve never had to pay the cash back (I’ve never seen that level of fees even on days when we’ve brought in $100K). You do have options- wouldn’t want you guys to be taken advantage of as small business owners. We recently switched to a new processor b/c their monthly fee was more reasonable!
Brittany @ Itty Bits of Balance says
The cash back payment by the businesses themselves is news to me! Talk about sneaky sneaky…
Jo says
I think you need to look into a different credit card merchant….they don’t all charge the same…perhaps costco service for small businesses
Christina says
We’ve owned or been involved with businesses in 3 different states and have NEVER paid reward fees at all. Unless it is an incredibly repressive Virginia state law, which I really can’t imagine, and if you’re SURE it’s not a mistake, it must be just a really horrible deal with whomever your credit card merchant is. I know it’s a pain to switch service providers, but with financial ramifications THAT high for 1 month of business, you should definitely check into switching vendors for your CC’s.
Jenny @ Shelf Love says
Is it only cash-back rewards cards, or all rewards cards, like airline miles or gas cards? I have a card that puts money in my daughter’s college fund, for instance, and I use it for EVERYTHING. Would you pay that type of reward card as well?
KathEats says
I don’t think it’s airline miles – I think cash only. The cards are appreviated, but it looks like a lot of them are restaurant perks cards with cash back from their names (rstrnt)
Jen says
I have a credit card that pays cash back rewards and it’s graduated – restaurants are 1%, gasoline is 3% and travel is somewhere in the middle, 2 or 2.5%. I had no idea that percentage was being passed along to the merchant to pay the card company back. Which they are also making an interest profit on because they don’t pay me the cash back until the end of the fiscal year. Harumph!
J3nn (Jenn's Menu and Lifestyle Blog) says
Wow, I did not know that about cash back programs and credit cards!! As a small business owner that is about to get a merchant account, thanks for the heads up. I feel awful doing that to any business–local or not, small or not. That’s double-dipping on the credit card company’s behalf, as far as I’m concerned. They’re screwing the business owner AND charging the merchant fee. Ouch.
It’s sad that consumers do not realize this. I think there needs to be more awareness out there, and I don’t mean by government regulation or mandates, but in general. Simply awful.