ryandrake
3 days ago
It shouldn't be called a "convenience fee" unless you can opt out of it and pay some other non-convenient way. What if I don't want their version of convenience? Why should I have to pay a convenience fee? Why can't they just roll this into the main price of parking? It's gotten to the point where as soon as I see the word "fee" I assume I'm being ripped off.
sowbug
3 days ago
Why can't they just roll this into the main price of parking?
Be careful what you ask for. A common ploy for dominating marketplaces (Amazon, Doordash, etc) is to prohibit merchants from offering lower direct prices than what's offered on their platforms. They always say this is to guarantee that you'll get the best prices with them. But that's a twisted way of saying all prices must be at least as high as theirs, and the point, of course, is to remove any incentive for merchants not to use the middleman.
zamadatix
3 days ago
Then wouldn't it make more sense to roll this into the main price so the main price seems higher rather than lower?
socalgal2
2 days ago
The common example is Mastercard and Visa. They charge a fee to the merchant but they require that that the merchant cannot offer you a lower price to pay some other way to avoid the fee. On top of that, there are 2 fees, one for "regular cards" and one for "premium cards" (gold cards, platinum cards). They charge the merchant more when a user uses a premium card but they require the merchant not to tell you.
In an ideal world (well, my ideal world), these fees would be called out so that you, the customer, could choose not to pay them. You might see, "if I pay cash this $100 product will cost $100 but if pay with my platinum card it's $105. I can save $5 by paying cash".
Mastercard and Visa forbid this for two reasons: (1) they don't want you choose the cheaper cash option (2) they don't want a competitor to be able to offer a lower fee. In the example above, they charge $5 but a competitor could charge $1. You'd might pick the cheaper option but you're unaware of it since they forbid the merchant from offering.
They can only do this because they effectively have a duopoly on the market. Don't play by their rules, lose 99% of your customers. Various governments try to fix this. The cynical reason it hasn't been fixes is they pay off politicians to make sure it doesn't get fixed.
chrismorgan
2 days ago
The Reserve Bank of Australia prohibited no-surcharge rules twenty-something ago: businesses were allowed to surcharge up to whatever the transaction cost them, or a calculated average (the idea being that you weren’t allowed to make a profit out of it). They recently partly went back on this, no longer allowing card surcharges <https://www.cardsurcharge.com.au/>, but you are still allowed to offer payment method discounts <https://www.accc.gov.au/business/pricing/price-displays#toc-...>, so I presume they’re still banning the card networks from forbidding such a thing.
anenefan
2 days ago
The problem in Australia was bank cards used to be the standard of electronic payment using eftpos as the gateway to debit from the bank. Late mid 2010's banks started to flog a visa debit card ... which additionally allowed a person to make over the phone or internet credit type payments - if they didn't already have their own credit card from elsewhere. At some point some retail stores started to drop eftpos for processing - unsure if visa debit was cheaper, quicker or just better for them. A purchase via visa used to be the merchant got to sell something a person would otherwise leave to get at a later time ... perhaps by then put up with second hand item or find a better deal in the mean time; so they gladly absorbed the fees visa, mastercard and amex charged - however either rules changed or it was so common place they started to pass on as a fee to the purchaser, a portion 1 .. 1.5% of the 2.5 .. 4 % that the credit card companies were charging merchants.
The govt both sides really want the economy here to eventually move to electronic so it can be tracked hard - however it was obvious the banks along with the $$$$$ credit card companies were making making a killing even at 2.5 % of all retail purchases ... so it was better to encourage merchants adopting close to free services like eftpos again which is about 0.2% max of a transaction.
Caveat - Of course some big retail stores can negotiate down the transactional percentage they pay in fee to Visa, Mastercard or Amex ... though I don't think any here got anywhere near as good a deal as Stripe. [1]
[1] https://stripe.com/au/resources/more/eftpos-fees-and-charges...
> where Visa and Mastercard debit is about 0.5%, and many credit cards are an average of 0.9% or more.
zamadatix
a day ago
In the above discussion, the merchant is free to (and does) display the fee. Usually because it's not actually a fee they encounter, but some bs way to make the price listing look lower.
Unregulated transaction fees are definitely their own painful ball of wax that should be dealt with though. Rather than just see it, my ideal world would just be that the fee is capped to some reasonable amount which keeps it related to having an efficient transaction network instead of a collusion and extortion network. I'm not sure solving transaction fees solves the original problem though.
limagnolia
2 days ago
In the USA, this has not been the case for several years now. There are a few (I think 3) states that ban passing the cc fee through, but those are state laws not Visa/MC rules.
antonkochubey
2 days ago
In Germany, some e-shops offer 1-2% discount when paying using bank transfer (vs card)
flakeoil
2 days ago
It would be good if governments forced a disclosure of these fees at checkout.
user
3 days ago
autoexec
2 days ago
> A common ploy for dominating marketplaces (Amazon, Doordash, etc) is to prohibit merchants from offering lower direct prices than what's offered on their platforms.
Sounds pretty illegal https://en.wikipedia.org/wiki/Robinson-Patman_Act so I guess somebody should start pressing charges against a lot of companies.
lmz
2 days ago
That act seems to prohibit offering different prices?
simmonmt
3 days ago
At least in my town you can opt out by paying with coins. So the convenience fee is for not having to carry coins around. For me at least it's worth the trade.
OptionOfT
3 days ago
I find it weird that it's okay for a city to pay someone to come around to collect the coins, at no additional cost to the customer, but swiping/tapping? Absolutely not, that must be passed through to the customer.
I'm sure for the city tap to pay is cheaper for them than collecting the $, even without a fee.
hdgvhicv
2 days ago
In most countries debit/credit fees are far less than the fees to deposit cash in a bank.
The main purpose for taking cash is tax evasion, which outweighs the increased cost of cash handling.
SoftTalker
3 days ago
Cities have plenty of employees without much to do.
Coins, being cash, are simple, require no apps, smartphones, batteries, tracking, ads, or privacy violations.
arlattimore
3 days ago
They should just call it what it is, a booking fee.
Nothing inherently wrong with a booking fee if it is transparent.
arlattimore
2 days ago
One way or another someone is going to pay for the booking platform.
They charge a fixed fee per booking. They charge a percent fee per booking. They charge a fixed fee per time window. They charge a combination of the above.
Depending on jurisdiction, they are required to include the fee in the total price vs burying it on the checkout page. As a consumer, you'll see that total price - some businesses might disclose that a portion of the total cost is a fee, others will not.
My point was just that they are trying to be a little cute by calling it a convenience fee, just call it a booking fee - nothing wrong with that.
somehnguy
3 days ago
How is that any different? It's still a fee you can't opt out of by using a different method
internetter
2 days ago
> Nothing inherently wrong with a booking fee if it is transparent.
Booking fees are unethical and should be included in the price
user
3 days ago
Projectiboga
3 days ago
The direct way to to pay at their kiosks but those often conveniently can never read your card or with lots of dollar coins and quarters.
foresto
3 days ago
Reminds me of the early years of ATMs, when banks would charge their customers a fee for the privilege of using a machine instead of a human teller.