| View previous topic :: View next topic |
| Author |
Message |
raewon
Joined: 16 Jun 2009
|
 Posted: Sun Jul 26, 2009 4:23 am Post subject: Where have you paid more by card? [VS cash] |
 |
|
There is a store in Itaewon that sells spices, imported goods (not sure of the name, but it's down just a bit from <What the Book?>) that adds on a small fee if you pay by card rather than cash. At least they used to. I don't think I've been there once this year.
Where have you been asked/told you had to pay a bit more when paying by credit card rather than cash?
This practice is illegal. |
|
| Back to top |
|
 |
zstar5000
Joined: 23 Feb 2009
|
| Posted: Sun Jul 26, 2009 6:08 am Post subject: |
|
|
Your source to support the fact that this practice is illegal?
I would be curious to read about it. One time the place where I play tennis tried to add on a rather large credit card fee, or at least I thought. We worked it out and it was probably just due to confusion, but who knows. |
|
| Back to top |
|
|
crsandus
Joined: 05 Oct 2004
|
| Posted: Sun Jul 26, 2009 6:14 am Post subject: |
|
|
| Many places will just get around the overcharging by claiming that you get a discount by paying with cash. All the items I bought at Dongdaemun this weekend had a cash discount. It happens in America as well, some gas stations charge a normal price and also list a cash price. |
|
| Back to top |
|
|
Leafs42084
Joined: 31 May 2009
|
| Posted: Sun Jul 26, 2009 6:46 am Post subject: |
|
|
they do this in canada too.
Isnt it so that they dont have to make tax claims or something? the transcation would be basically under the table. |
|
| Back to top |
|
|
kinerry
Joined: 01 Jun 2009
|
| Posted: Sun Jul 26, 2009 12:12 pm Post subject: |
|
|
| It isn't illegal, just against the merchant agreement, they can lose their ability to process cards if you complain |
|
| Back to top |
|
|
climber159
Joined: 02 Sep 2007
|
| Posted: Sun Jul 26, 2009 1:37 pm Post subject: |
|
|
| Retailers are charged a fee that is usually a percentage of the transaction amount. I've heard that this fee can be as high as 5% in some cases. So if a retailer offers a "discount" for using case it can be a win-win situation for the customer and retailer. |
|
| Back to top |
|
|
benji
Joined: 21 Jul 2009
|
| Posted: Sun Jul 26, 2009 1:44 pm Post subject: |
|
|
| I have fought this battle many times at Yongsan electronics market. Neogotiated a satisfactory price on a large ticket item, pulled out the credit card to pay, and then the merchant says no, if you want to pay by credit card it will be more. When we originally negotiated, did he think I brought 2 million won in cash to pay for that plasma tv? |
|
| Back to top |
|
|
raewon
Joined: 16 Jun 2009
|
| Posted: Sun Jul 26, 2009 3:48 pm Post subject: SOURCE |
|
|
A friend asked this question on the Seoul Global Help Center Q&A board ------ here is their reply:
-------------------------------------
Hello,
It is illegal to add an additional service charge to people using Korean or foreign issued credit cards.
Keep your receipt from any such purchases. A complaint can be lodged with the Financial Supervisory Service (http://english.fss.or.kr) at 02-785-3475 (fax) or email [email protected].
Regards,
Seoul Global Center
------------------------------------
I don't have any problems with places offering a reduced price (reduced
as in lower than the price marked or the price they first quote you) if you
pay in cash. My problem is that they CAN'T charge you more than the
marked price should you decide to pay by card. THAT is illegal. |
|
| Back to top |
|
|
victorology
Joined: 10 Sep 2007
|
| Posted: Sun Jul 26, 2009 3:53 pm Post subject: |
|
|
| benji wrote: |
| I have fought this battle many times at Yongsan electronics market. Neogotiated a satisfactory price on a large ticket item, pulled out the credit card to pay, and then the merchant says no, if you want to pay by credit card it will be more. When we originally negotiated, did he think I brought 2 million won in cash to pay for that plasma tv? |
Yes. When I go to Yongsan, I'm always prepared to pay cash because I know I can get a better price. I think most people do the same. |
|
| Back to top |
|
|
big_fella1
Joined: 08 Dec 2005
|
| Posted: Sun Jul 26, 2009 4:05 pm Post subject: |
|
|
On 2 occassions places have tried to surcharge me.
The other 2 were furniture stores. I was ready to walk out rather than pay the surcharge (both wanted 10%) and both backed down.
I want to pay on card or with a cash receipt as this is tax deductble in Korea. Some shops don't want cards or cash receipts because they have to pay tax on this.
If I am offered a discount for cash that is okay, but surcharging my VISA card is a breach of their merchant agreement. Surcharging is legal and allowed in Australia and the UK but 10% would be unacceptably high. I know in Australia merchant fees run between 0.9% to 4.5%. |
|
| Back to top |
|
|
benji
Joined: 21 Jul 2009
|
| Posted: Sun Jul 26, 2009 4:50 pm Post subject: |
|
|
| victorology wrote: |
| benji wrote: |
| I have fought this battle many times at Yongsan electronics market. Neogotiated a satisfactory price on a large ticket item, pulled out the credit card to pay, and then the merchant says no, if you want to pay by credit card it will be more. When we originally negotiated, did he think I brought 2 million won in cash to pay for that plasma tv? |
Yes. When I go to Yongsan, I'm always prepared to pay cash because I know I can get a better price. I think most people do the same. |
I am aware of the concept of a cash discount. Yet I have no interest in carrying around thousands of dollars in cash after withdrawing it from my bank. Plus I have a great program with my credit card.
While negotiating the merchant should say this is the cash price im offering, not wait until we have agreed on the price and I pull out my card. Or sometimes Im even willing to pay the posted price if its low enough, and they wont give me that price if I want to pay with credit card.
Glad to learn this is illegal. |
|
| Back to top |
|
|
Carla
Joined: 21 Nov 2008
|
| Posted: Sun Jul 26, 2009 5:12 pm Post subject: |
|
|
| They do it in the USA. The main one that I know off the top of my head is some franchise (not corporate) owned McDonald's. I think they call it a "convenience" fee or something like that. I don't know how much they charged you for it, but if it's a small amount to offset the difference that it costs them to let you use your card. My friend has a store and I think Visa/Mastercard charges him like 1.5 ~ 2% depending on your exact card. He doesn't charge any extra fee, but I could see their logic even if I don't agree with it. The problem I have is their "convenience" fee is much greater than the fee they are charged. |
|
| Back to top |
|
|
kinerry
Joined: 01 Jun 2009
|
|
| Back to top |
|
|
crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
|
| Posted: Sun Jul 26, 2009 5:41 pm Post subject: |
|
|
Chill out.
| Quote: |
Is this also against policy if it's outside the US?
Not necessarily - it depends on the local agreement between the service provider and the business. |
Korea isn't specifically mentioned on that site and the question regarding non-us vendors states that it depends. Do you have translated copies of the various merchant agreements that korean vendors have to sign?
| Quote: |
they do this in canada too.
Isnt it so that they dont have to make tax claims or something? the transcation would be basically under the table. |
In Canada that violates the merchants agreement. They're not allowed to add feeds for CCs or debit. There were businesses that got slapped for that a couple years ago. If a business tries to add one, tell them only if they don't mind if you report it to the bank who issued their machine (you can see what model it is when you pay). In Korea it is to avoid tax claims, they can get away with that here. I don't know how easily they'd get away with that in Canada. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
