Quote:
Originally Posted by Dan203
The more I think about this, the more I agree with pwillcutts. Every business that accepts Visa/MC agrees to pay 2% of the sale as a processing fee. Just because this is a larger purchase and equates to a bigger number shouldn't make a difference. Do you think BestBuy would refuse to sell you a $5K flat screen TV just because it was going to cost them $100 for you to charge it on your Visa? No! Even if that ended up eating away the majority of their profit they'd still take it, because that's the cost of doing business.
Now if the dealer had given pwillcutts some phenomenal deal, and using the Visa was actually going to cause them to lose money on the car, then I could see them making a stink over it. However based on his posts, and the config in his sig, the dealer is making about $2500 off of his car. If they end up eating $800 because he pays for it with a Visa then they will still make $1700. To me that's not a bad profit for selling 1 car.
Dan
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Dan, IMO the difference is that retail stores with set pricing like Best Buy factor in CC fees when setting their retail prices. Car dealers almost certainly do not.
Edit: I've worked with a number of retailers, and got some insight into the difference between invoice and retail for many consumer products. If you choke on the smallish 10% markup that car dealers get, you'd gag when you realize how little Best Buy paid for that $5000 TV.