A question on Alan Photo

[clubgrit]

That's where you are wrong. The banks pay the shops the full price, and then takes the money back from you.

No, when the banks pay us, the shop, they already remove their commission of 5%. This is with UOB, DBS, POSB installment transactions.

 

[vince123123]

Hmm I was responding to camerashy's comment, which implied that the shop get paid in installments. I wasn't commenting on whether the banks take their commission or not.

That said, you appear to be a shop yourself - could you confirm for us whether the contract with the credit card companies forbid the raising of price and recovery of commission from customers?

No, when the banks pay us, the shop, they already remove their commission of 5%. This is with UOB, DBS, POSB installment transactions.

 

[clubgrit]

Hmm I was responding to camerashy's comment, which implied that the shop get paid in installments. I wasn't commenting on whether the banks take their commission or not.

That said, you appear to be a shop yourself - could you confirm for us whether the contract with the credit card companies forbid the raising of price and recovery of commission from customers?

No, the shop does not get paid in installments, they get the full payment after a few days, less the banks' commission.

Yes, it is forbidden as per contract. But smaller shops do not abide by this. If they are earning very little, and the customer wants installment, then they can discuss it with the customer. The shop can of course refuse not to sell on installment, it's just a service offered, not mandatory. Of course, they can also just add the commission to their mark-up, but some shops may want to appear to be competitive with other shops, especially those without such a service, so they don't. I guess it's a cutthroat industry, so many photography shops around. Of course, it exists in non-photography related stores. It is so common, it's already part and parcel of shopping :dunno: Of course, if you buy at the bigger chain stores, the commission is already factored in, and they sell in large volume anyway that it doesn't matter. They can also buy in large volume, so they get better prices from manufacturers, usually.

 

[chanxj]

there is. But the retailers can juz say is part of the camera's price and it will be ur word against theirs so no point for credit card company to pursue.

 

[vince123123]

1. Yes I know

2. I was referring not so much to installment plans, but commission in general, ie ANY type of credit card payment.

No, the shop does not get paid in installments, they get the full payment after a few days, less the banks' commission.

Yes, it is forbidden as per contract. But smaller shops do not abide by this. If they are earning very little, and the customer wants installment, then they can discuss it with the customer. The shop can of course refuse not to sell on installment, it's just a service offered, not mandatory. Of course, they can also just add the commission to their mark-up, but some shops may want to appear to be competitive with other shops, especially those without such a service, so they don't. I guess it's a cutthroat industry, so many photography shops around. Of course, it exists in non-photography related stores. It is so common, it's already part and parcel of shopping :dunno: Of course, if you buy at the bigger chain stores, the commission is already factored in, and they sell in large volume anyway that it doesn't matter. They can also buy in large volume, so they get better prices from manufacturers, usually.

 

[raven]

1. Yes I know

2. I was referring not so much to installment plans, but commission in general, ie ANY type of credit card payment.

1. The banks pay in full to the retailers even for installments minus the commission the very next working day.

2. The commission is nowhere near 5 to 3 %. Amex card carries a higher commison rate. For VISA and Mastercard the banks charging commission to retailers has been below 2% since 1990. The average is 1.4%.

3. VISA, Mastercard, Amex cannot pursue the retailers because they put it as the total price in the receipt.

4. This phenomenon of surcharging for card payments first started with Travel agents, followed by local jewellery stores and Photo stores. It is one of the reasons why SIA first began reducing agents commission and began working with wholesale travel agents and the internet. 2 major travel agencies known for surcharging have since gone under. Customers typically pay the surcharge and send in the complaint letter to the bank and the card companies later.

5. Don't be surprised if you find that the card companies having accumulated numerous complaints from certain merchants are working with those big houses with no complaints to launch internet sales which are transparent such as B&H in the US. Prices are transparent. After all people know the models and specs.

 

[vince123123]

Don't quite understand what you said - but I surmise that you are saying that it is no point complaining about extra surcharges imposed by retailers?

1. The banks pay in full to the retailers even for installments minus the commission the very next working day.

2. The commission is nowhere near 5 to 3 %. Amex card carries a higher commison rate. For VISA and Mastercard the banks charging commission to retailers has been below 2% since 1990. The average is 1.4%.

3. VISA, Mastercard, Amex cannot pursue the retailers because they put it as the total price in the receipt.

4. This phenomenon of surcharging for card payments first started with Travel agents, followed by local jewellery stores and Photo stores. It is one of the reasons why SIA first began reducing agents commission and began working with wholesale travel agents and the internet. 2 major travel agencies known for surcharging have since gone under. Customers typically pay the surcharge and send in the complaint letter to the bank and the card companies later.

5. Don't be surprised if you find that the card companies having accumulated numerous complaints from certain merchants are working with those big houses with no complaints to launch internet sales which are transparent such as B&H in the US. Prices are transparent. After all people know the models and specs.