FTD and credit cards

Status
Not open for further replies.
C

carl

New Member
Aug 16, 2003
2
0
0
124
York,Pa
www.schaeferflowers.com
Sorry if this doesn't look right, but this is my first post on this board and am not really up on all the terminology I see thrown around here. Hate to plead ignorance but what is a "thread" and all the side references to it, ie. "hot", "sticky" etc?

Anyway, to my question. Any of you FTD members or former FTD members understand how FTD gets to charge members a service charge to pay your month end statement balance with a credit card when Visa/Mastercard won't let us charge a customer a "service fee" to use a credit card to buy with us or pay a bill? Has anyone run this up the flagpole at FTD and gotten something other than "doublespeak"?

Personally feel like running this by Visa/Mastercard to see how they get away with this short of getting some reasonable explanation from someone on this board or FTD.

Thanks
 
Hey Carl....

Try to answer....

HOT, means that there is alot of activity in the "thread" which is a string of comments on a subject....

STICKEY means that the "thread" will stay at the top on the list of topics in any one forum...

As to the "charge" FTD takes on the payment of statements on a CC, are they doing that or are they taking back a portion of the discount they may have given previously ? I DO NOT KNOW! Only asking... Have you asked the CC dept at FTD? Might be better to do that first before running it by V/MC...

Welcome to FlowerChat, join in and post....

mark
 
I would LOVE to see someone run that by Visa or MC. It do seem funny. We could probably get away with that for our customers too, until someone researched it and we got caught.

Please do and let us know what you find out.

and welcome
 
Is it illegal?
Around these parts we get that all the time in gas stations.
There is one price for cash and another for credit cards.
Isn't that the same thing?
I have a customer who does something similar with wire out orders. If the customer pays with a credit card, he has flowerSoft automatically add $1 to the relay charge.
 
I don't believe I had an additional charge for paying with credit card... I have only done this 2 times.. both times I forgot and it was too late to mail the check.. and so I called before the 25th.. maybe the 23rd or 24th.. and I did this last year.. not recently.. but I would surely call FTD and asked what the charge was for.. please post the reply because I would like to know if this has changed.

Carol
 
George Simon said:
Is it illegal?
Around these parts we get that all the time in gas stations.
There is one price for cash and another for credit cards.
Isn't that the same thing?
I have a customer who does something similar with wire out orders. If the customer pays with a credit card, he has flowerSoft automatically add $1 to the relay charge.
Click to expand...

I do not think that it is illegal, but the credit card companies might frown on it. I don't know. I worked for a guy that charged a percentage for payment with credit card. It does piss people off but as far as I know he never got in any trouble.
 
Yup, illegal according to your merchant agreement. The way around this is to cash discount your prices .. and post the discounted price.

You can't ADD a surcharge, but you can DISCOUNT for cash.
 
I guess it is because they loose lots of $$$$$$$$ if they process your balance on a statement. Let's look at the big picture, let's say they have $100,000.00 a month in balance that is paid with credit card. Their fee they loose based on $2% is $2,000.00 times that by 12 months then it is $24,000.
It is just a service they are offering FTD members which now days members could gain if they have air miles, or points to a credit card which you can use to buy things after.
I think they shold not charge a extra charge. It is all part of doing business. We accept credit card payment and don't charge extra. Same goes with intown or out of town sales.
Now george for the florist that charge a extra fee ($1.00) in my opinion it is not fair. I wonder if people would realize this and make a stink about it.
Luc
 
They probably don't realize it because it is part of the relay charge.
If it was listed separately I'm sure they would complain.
They only do it on wire outs.
$50 sale = $10 less $1 credit card charge = $9
I guess they don't want to lose that buck.

I bought gas yesterday. $1.74 cash price $1.82 credit card price.
Of course, the sign outside shows only the $1.74 price.
 
Ok, here's what I've discovered. My FTD business rep tells me they do charge a graduated fee schedule depending on the balance. It's done on a dollar basis and runs from a $3.00 fee for a balance of 1 to 99.00 to $262. for a balance of 8700 to 10000. Get this, it's higher if you use American Express!!!! My rep tells me there is absolutely no room for negotiation on this.

My response to earlier post about the cost not to charge a fee is simply this. This appears to be directly contrary to our merchant agreement with the processing bank. "Cash Flo" is very open about the contradiction. If this is too expensive an option for FTD to handle within the rules we all have to abide by then they should not offer the option. For how many generations did we settle up with FTD through the old fashioned bank check? Clearly FTD is exercising some muscle in the marketplace they don't even offer their own members. Are we surprised?

Finally, anyone out there clear through Teleflora? Be interesting to see how they handle this. The real test here would be for all of us who clear credit cards through the wire services is to pay one months balance by credit card and then when assessed the fee, file a complaint with our credit card company against FTD/Teleflora and force Visa/Mastercard to confront FTD/Teleflora about their policy.

'Mazin how creative one can get between holidays!!
 
In Australia...
In August 2002 the Reserve Bank of Australia released three credit card related reforms. One of these removed credit card rules that prevented merchants from recouping the cost of merchant service fees directly from consumers who purchased goods or services using a credit card. This means that from 1 January 2003 consumers could be charged an additional fee when they purchase goods or services with their credit card.
 
Here is something else closer to home...

The Owner-Operator Independent Drivers Association (OOIDA) announces the filing of a class action suit in the Chancery court for Williamson County, Tennessee, against the Flying J, Inc., and Pilot Corporation truckstop chains and EFS National Bank for the improper imposition of surcharges upon credit card purchases of diesel fuel by truck operators. Jim Johnston, president of OOIDA, explained, "all merchants that accept VISA and MasterCard promise in their contract with the credit card company that no surcharge will be imposed on credit card purchases, yet these truckstops choose to ignore that promise when the customer is an owner-operator trucker with a credit card. Credit card users, including thousands of owner-operators, are beneficiaries of these promises, and have the right to enforce them."
 
And from EBay...



Credit Card Surcharges An eBay seller may not charge a fee, often called a "credit card surcharge," when accepting credit card payments. This surcharge, which is an added cost to the buyer over and above the final sale price and shipping/handling, is not allowed under the laws of many states, including California.

​
 
And yet something else...

Credit card surcharges and cash discounts

[font='Times New Roman', Times, 'Times NewRoman', serif]In some states the customer can be assessed a surcharge for using a credit card. However, there are laws against credit card surcharges in CA, CO, CT, FL, KS, MA, ME, NY, OK and TX. Additionally, Visa and MasterCard prohibit surcharges. American Express discourages them in general, and prohibits merchants from charging them if they also accept MasterCard or Visa. Discover allows surcharges on credit card purchases except in the above states. According to Bankcard Holders of America, there is one exception to the no surcharge law. If you pay state license fees by credit card, you may have to pay a surcharge. There are no exceptions for retail merchants. [/font]
 
It is fact that if we choose to pay our state sales tax on a credit card, the state charges a "credit card fee." Try paying your U.S. Income Tax balance due and guess what, you also pay a "fee" for the option. My guess is that the "Merchant Agreement" rules are written just for your traditional retailing-type of operations, not big entities?
 
Much easier to EFT

Electronic Funds Transfer is much easier, and faster...

I do it every month....with a credit card, you still have to pay the CC company anyway...

As to the Surcharges...we do charge one to any customer that calls to pay their house account, **IF** we have sent them a ststement previously..never had a complaint yet...
 
Here in N.Y. you are not allowed to charge a customer more money for an item at the time of purchase because they have used a credit card. However if they have an account and you have sent them a statement and then they want to pay that statement with a credit card after you have billed them , then it is legal for you to charge them a rebilling fee, (service fee) for letting them. This is no different than your customer getting billed and then when the bill is due switching it to a credit card for another 30 days. Many businesses do this and why shouldn't theym they now have to wait another 30 days for their money.
We are seeing many of our customers that are on house accounts calling just before payment is due and putting it on a credit card to beat us for another 30 days. We are considering charging this rebilling fee, and why shouldn't we.
We have extented credit, incurred a cost for billing and patiently waited 30 or more days for our money and now they want us to loose the % to the credit card company and wait another 30 days for our money.
 
And

flowerknife+us said:
now they want us to loose the % to the credit card company and wait another 30 days for our money.
Click to expand...
They do try, don't they....

I charge a flat fee of 5% to credit a house acct on a CC, and yes it is much more than I pay for the discount...basically set upp to re-coup the expense, additional loss, and a small profit as well, even after considering the time, envelope and statement...

As to waiting another 30 days for MY money....naw, get the deposit the next day....
 
Status
Not open for further replies.
Top Bottom
Back