When the Price Tag Law becomes anti-consumer

We should be careful on govt. pronouncements, especially pronouncements that on the surface seem good to us.

We should learn that Govt. Policies are influenced by big moneyed lobby groups. (Yes, that includes the US Govt.)

The Price Tag Law was really instigated by the Credit Card Companies and the Banks. They get Billions and Billions from the fees they charge from the merchants. It would seem like they are fighting for our interests but they are really salivating on the Billions they get on those fees.

The banks also discrimate against small merchants charging them 6% while the big chains could haggle to lower their fees to 3%. Soon the small merchants would whittle away and what would remain are the Big 3 Dept. Stores much like the Big 3 Gas Companies who have the same price but we all know we are being screwed by them.

If a dictator were to rule the country and order a ban on giving discounts to cash purchases, we would think that we are getting a good deal but what we don’t know is that we are being screwed by the banks since those fees will be inputed to the cost of the merchandise.

If I am patient enough to save up for my purchases, I would like to have that fee from the bank deducted from my purchase please.

I already posted this comment on another blog but I see it’s relevant so here goes:

If one were to complain about the price tag as the “credit card” price and the cash price as the “discount”, it’s still a dilemma that the if we use cash price for the price tag and then have to explain to the customer why we have to jack up the price with a surcharge if they were to use their card. The terms for running a card machine is that there should be no difference in price between paying in card and using a card. Before you go and celebrate shouting “Sabi na nga ba!”, this logic entails that one should no longer expect a discount. If there is a discount, the store must be throwing a sale and that they still have a reasonably good profit margin to do so.

Once merchants have a card machine, they realize a 5% commission fee and tax are deducted from gross amount. They can’t rely on the old price scheme they are using and now have to accommodate this commission fee and tax. It stands to reason that if the rule of law and contract is to be followed, then the consumer is charged the same price regardless of nature of transaction.

You would probably think, “Oh, just spread that extra charge around with cash payers to break even.” That would be the most ignorant remark one will ever have made. You can’t tell how many people will pay in cash and what would happen if everybody started using credit cards?

Don’t even say “Suck it up!” Like the VAT, the money has to come from somewhere in order to pay said fee. Eventually, people will have to learn it is part of operating cost and shouldn’t berate the merchant for it.

Hell, I’m still wondering if merchants are entitled to receive a official receipt for this commission fee. So far, I only get the certificate form for the taxes and a summary form for the charges. I’ve yet to receive an official receipt for those commission fees and they sure pile up.

I don’t know how much power merchants have in lobbying for lower commission fees but I sure would like to see that extra charge for taxes be shouldered by the bank. And now the argument becomes a link in a chain…

Credit card purchases from the consumer do not incur surcharges unless you are late in payments.
It’s a different thing in commercial establishments, for appliances and gadget stores, they are charged 6% at least for using the credit card facility to sell products. With margins falling up to 5% only, it would be ridiculous to shoulder the 6% surcharge. They would rather not sell the product at all. For supermarkets the credit card companies only charge around 1-3% so there is more possibilities of this being absorbed by the establishment. For restaurants, they usually have a higher margin so that is why they are able to absorb those costs.

how tragic!