Auction + CC fee

[Joe357]

I was looking on Gun Broker yesterday at a few auction item handguns.

 

Most of these had a starting bid of .01 and were up to hundreds of dollars when I looked. In the comments area of the auction items it states there will be a 3% charge if using Credit Cards. IMHO this is bull. If you auction something off and it meets your reserve you got your min price. Now they want to charge someone extra because they don't know how to do the math?

 

All they needed to do is calc the min + 4% and that should be the min reserve. 

 

I myself would never send cash, money order, etc. to an unknown, would you?    

[Guest 6.8 AR]

The CC fee is what they get charged for your privilege of using the card. I can't really blame them for charging

a fee when they are only trying to reduce costs. I think they are just being honest when they do disclose.

It's a wash either way you look at it, between your way and theirs.

Edited March 7, 2013 by 6.8 AR

[scoutfsu]

The 3% charge is what they pay to have the ability to use the CC - ie: they pay Visa a certain percentage of the whole amount.  So what you're doing is paying for the option to use a CC, which they don't have to accept, but it gives you peace of mind.

 

No one is forcing you to use a CC.  You don't want to pay the fee?  Then don't use a CC.

[KaNuckles]

The CC fee is what they get charged for your privilege of using the card. I can't really blame them for charging

a fee when they are only trying to reduce costs. I think they are just being honest when they do disclose.

Correct^^^^And an auction is different in that it has the potential to bring a higher profit margin. But it also has the potential to bring a lower margin or even a loss. Especially a no reserve auction. So I can't really blame them for at least wanting to cover the CC fee. 

[quesogrande]

Its more of benefit to the busniess to accept cards -  They sell more product by accepting cards.  Shipping is built in the price or the listing would say,  Price + shipping to me + shipping to you + cc fee 

[scoutfsu]

Its more of benefit to the busniess to accept cards -  They sell more product by accepting cards.  Shipping is built in the price or the listing would say,  Price + shipping to me + shipping to you + cc fee 

Its a mutual benefit.  The buyer gets the added insurance of a CC company at his back and he can spend money that he may not have at the moment.  The business gets payment fast, opens the door to more buyers, etc.

 

ETA:  Just like some gas stations will give you a little break if you pay with cash.  This is nothing different.

Edited March 7, 2013 by scoutfsu

[Volzfan]

If the seller factored in the extra CC amount into his Minimum Price and then the buyer send a  MO or check then they have just paid more than necessary. I think the way he's doing it is the fair way of doing business.

[Joe357]

Why not give a discount for money order or cash, like one of the stores here locally does?

Edited March 7, 2013 by joesig

[scoutfsu]

Why not give a discount for money order or cash, like one of the stores here locally does?

 

 

........really?  That's exactly what they're doing.  For example, it's $100 paid by MO, PayPal, etc.  It's $103 if paid by CC......there's your cash discount. 

 

If you don't want to pay by other funds and insist on a CC, that's your problem.  They're up front about it and not hitting you with any hidden fees.  What's the problem?

[runco]

I do not think all sellers on gunbroker charge the fee. Before bidding just review the ad carefully, I always do. I personally refuse to buy any item from a retailer that has an extra cc fee. That is just cost of doing business. Every retailer has this same challenge/extra cost. It just seems like of all of the different markets, only the gun market pushes this fee.

[Joe357]

No it is not my problem I don't buy to pay extra so I don't bid. Auctions are take what you get unless you put a minimum price that is the point, I use CC all the time why because I don't like carrying cash. You're right make me pay more because I don't trust online stores that charge more for CC purchases. Then justify it because they have to pay 3% for doing business sorry that is the cost of doing business period. When you go into another local store do you say to the store owner I am going to use my CC so let me pay more for the item I Don't think so. That is the point and I only see this with gun sales at least I don't remember any place else paying extra for using CC if I did I would find the item somewhere else

[scoutfsu]

Like I mentioned earlier, gas stations do this all the time.  I don't get what the problem is.  Are you mad that they're not accommodating your need to use a CC?  Then keep on doing what you're doing, not bidding.

 

You can look at it as getting a cash discount.  Or if you want to use a form of payment that costs them money, then be prepared to cover that cost.  Its not like they're jacking you for 10% or hiding the fees.

[No_0ne]

No it is not my problem I don't buy to pay extra so I don't bid. Auctions are take what you get unless you put a minimum price that is the point, I use CC all the time why because I don't like carrying cash. You're right make me pay more because I don't trust online stores that charge more for CC purchases. Then justify it because they have to pay 3% for doing business sorry that is the cost of doing business period. When you go into another local store do you say to the store owner I am going to use my CC so let me pay more for the item I Don't think so. That is the point and I only see this with gun sales at least I don't remember any place else paying extra for using CC if I did I would find the item somewhere else

You are already paying extra for using your card, it's factored in to the costs of goods and services everywhere you shop.  As you say, it's the "cost of doing business", all of which is ultimately paid by you, the consumer.  Business 101.

[Volzfan]

You are already paying extra for using your card, it's factored in to the costs of goods and services everywhere you shop.  As you say, it's the "cost of doing business", all of which is ultimately paid by you, the consumer.  Business 101.

^^^Any smart business person will account for all of his/her costs before setting the price. He's just giving you the chance to buy it cheaper if you so choose by offering you a choice.