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New credit card fee

davidvel

TUG Member
Joined
May 9, 2008
Messages
8,172
Reaction score
5,151
Location
No. Cty. San Diego
Resorts Owned
Marriott Shadow Ridge (Villages)
Carlsbad Inn
This thread WAS about credit card fees being charged by an HOA I believe. Not a restaurant, not a food prep fee, not a fee from a merchant. Depending on the card used, the HOA (via its owners) has to pay on every dollar in maintenance fees collected via CC.

Shadow Ridge generally has about 1% in CC fees on dues collected (probably so low as Marriott pays their share directly.) Still, this amounts to about $500,000 EVERY year. Owner then have to pay an additional $50,000 in management fees for these budgeted costs. So if the fees were directly passed to owners using CCs owners would save $50,000 if they were removed form the budget. (No I am sure Marriott would just collect more and keep the fees in the budget for their 10%.)
 

AJCts411

TUG Member
Joined
Apr 4, 2017
Messages
984
Reaction score
887
Resorts Owned
Hyatt Sunset x 2
My 2 cents worth. For week owners, HSH, as I am sure other resorts have, announced they are going cashless, credit cards only. I doubt the CC company's fees are more than 2.5%. There are plenty of studies that PROVE credit cards (and debit cards) are cheaper than using cash in the retail sector, including restaurants. Some major reasoning's the 0.5% Banks charge fr cash deposits, 0.5% or more for cash (floats/change) with drawls, mangers time to count and deposit, security etc. So when a business says they are being hurt by CC charges...it's not so true. Credit card fees are a cost of doing business, and I am not sure that the HOA are directing the fees as the $25 is being charged across all HVC resorts. We are al ready paying the mangers of the resort 13% and we are already paying 160 (I think) per week for club membership. So flat out this CC fee is money grab IMO, to cover operating costs we have already paid for.
 

jp10558

TUG Member
Joined
Oct 31, 2022
Messages
1,274
Reaction score
848
Location
Southern Tier NY
Resorts Owned
HGVC Seaworld
Wyndham Smoky Mountains
Foxrun Lake Lure
I feel like a lot of stuff as been conflated for which I have subtly different views on. The idea that the market solves all issues is blatantly untrue - almost no one on this forum justifies the sales tactics in retail of the timeshare industry as "well, the buyer made an informed decision and if they didn't like it, they wouldn't have bought it". Yet we want to apply that logic we reject there to other big resourced companies forcing changes some see as lying to customers like the now spreading digital payment fee. Remember this started with a fee for taking a check I think, or a bank draft IIRC.

I also agree with AJCts411 that most people in reality tend to hate al la carte purchases, or else cable bundles and unlimited minutes would never have caught on IMO. Flate rate of all sorts would not be a selling point, yet it is. It's basically insurance against unexpected huge bills.

In no place am I arguing that customers don't in the end have to pay for costs. I'm not really against businesses setting their prices where they think the market will bear. What I am against is the creeping Airline or car purchase model:

I see a sign outside saying $3 for a soda. When I walk in and get that soda, I don't then think it's fair for me to have to wait in line and then reject the purchase at the last minute (and probably annoy other customers, drive the employees mad, etc) because of all the a la carte fees they can think to add.

Oh, it's summer so there's the AirCon fee. $0.05. You went the restroom, $1 fee. You browsed the store, $0.50 store maintenance fee, You opened 3 coolers comparing sodas, 3x $0.25 cooling fee. And $0.02 Cash payment fee, or the $0.09 credit card fee, or a $0.05 check fee, and a $0.10 time checking out fee. $0.50 parking lot maintenance fee, etc etc. Sure, all of these are true, and the costs vary based on if I rode a bike or drove an F250, paid cash, check, or card, how fast I am at finding what I want, if I use a bathroom or not, etc. I just think these, and ideally tax, should be the up front cost of buying the drink. Of course, then you're beating out the "more honest" store across the way selling the soda for $4 that just includes all the costs of doing business.

And I think this is coming sans legislation. Because we used to have pay for restrooms. And we already see the fees creeping - ever ordered from GrubHub? There's the prices (that are inflated), there's a delivery fee, and a service fee, and a driver fee, and an expected tip. It all makes me wonder how in the aughts pizza places could ever afford to deliver a pizza for just a tip to the driver. Oh, and the justifications are pretty weak - delivery fee because somehow handing a pizza to a driver costs the restaurant extra vs handing to a customer picking it up themselves. The service fee for making an app (which to me seems like it's a service to the restaurant - again with the insane idea that they want to encourage phone orders because it "saves them money"). The driver fee to pay the drivers (shouldn't the company pay employees?). And the same tip we always had.

And the tip culture is also insane - we have another thread on that, but I really resent being expected to tip for the person to hand me a pick up order.
 

jp10558

TUG Member
Joined
Oct 31, 2022
Messages
1,274
Reaction score
848
Location
Southern Tier NY
Resorts Owned
HGVC Seaworld
Wyndham Smoky Mountains
Foxrun Lake Lure
This thread WAS about credit card fees being charged by an HOA I believe. Not a restaurant, not a food prep fee, not a fee from a merchant. Depending on the card used, the HOA (via its owners) has to pay on every dollar in maintenance fees collected via CC.

Shadow Ridge generally has about 1% in CC fees on dues collected (probably so low as Marriott pays their share directly.) Still, this amounts to about $500,000 EVERY year. Owner then have to pay an additional $50,000 in management fees for these budgeted costs. So if the fees were directly passed to owners using CCs owners would save $50,000 if they were removed form the budget. (No I am sure Marriott would just collect more and keep the fees in the budget for their 10%.)
If you're a timeshare HOA, the last thing you should want to be doing IMO is giving people a reason to not want to pay the MFs. You want to not tip people into defaulting because they feel like they're being unfairly charged to pay remotely via CC or ACH. I've had too many payments get lost in the mail, and then it's still my problem and a late fee because you want a fee for paying online too. Like, don't make it hard to get paid IMO.
 
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