Gift Certificates--Policies

[Lee2014]

Our GC are homemade and each is different. They must contact us to get them. They are sold for our best room during peak time (tax included) with no dollar amount attached. It is for one night stay during the summer or two night stay during the winter. It works for us and they are usually used since the people buying and receiving have been guests here before. We did one for charity (cancer org) auction. It was used within two months time frame.

 

[ChrisandShelley]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!

 

[Momma Smurf]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?

 

[Generic]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

1. It's a violation of your Merchant Agreement. You can discount for cash, but you can't charge for using a credit card, as far as I know.
2. Do you normally charge extra for using a CC to pay for a room? How is this any different?

 

[ChrisandShelley]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

1. It's a violation of your Merchant Agreement. You can discount for cash, but you can't charge for using a credit card, as far as I know.
2. Do you normally charge extra for using a CC to pay for a room? How is this any different?
.

I'm not advertising that the fee is covering credit card processing, I'm just saying that is our handling fee for it. I probably should have worded that better. But it is basically to cover the credit card processing fees. For the larger amounts, it won't totally cover it anyway. My thought was that the purchaser pays for a little of the fees on the front end. Then when it is redeemed, the credit card processing fees won't be as much because we are only charging their card for the balance.
No, we do not charge extra for using a credit card. It's just an expense related to doing business.
So no one does a handling fee/processing fee or anything extra? You just sell it at whatever value it is?

 

[ChrisandShelley]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?
.

No, we don't charge anything extra for CC processing. I think our PO's did at one time, because several returning guests pay in cash, then ask if we still charge extra for using a CC.
I was just thinking about trying to offset some of the CC fees. I want to barf every month when I get that CC processing fee expense come through.

 

[Momma Smurf]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?
.

No, we don't charge anything extra for CC processing. I think our PO's did at one time, because several returning guests pay in cash, then ask if we still charge extra for using a CC.
I was just thinking about trying to offset some of the CC fees. I want to barf every month when I get that CC processing fee expense come through.
.

Hmmm, I personally don't see how you can differentiate between using a credit card which incurs fees to pay for the room; and using a gift certificate that has already incurred the CC fees to pay for the room. I wouldn't pay a handling fee to buy a GC... Again, CC fees are a cost of doing business, no matter which end they occur.
I'd much rather make a GC sale, especially with the holidays coming up, then lose $$$ due to minimal costs that would happen anyway if the room was simply sold. Does not make cents to me.

 

[Generic]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?
.

No, we don't charge anything extra for CC processing. I think our PO's did at one time, because several returning guests pay in cash, then ask if we still charge extra for using a CC.
I was just thinking about trying to offset some of the CC fees. I want to barf every month when I get that CC processing fee expense come through.
.

We offer a cash discount. That's perfectly acceptable on the Merchant Agreement. We assume everyone pays by CC and then take off a percentage for paying in cash.

 

[ChrisandShelley]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?
.

No, we don't charge anything extra for CC processing. I think our PO's did at one time, because several returning guests pay in cash, then ask if we still charge extra for using a CC.
I was just thinking about trying to offset some of the CC fees. I want to barf every month when I get that CC processing fee expense come through.
.

Hmmm, I personally don't see how you can differentiate between using a credit card which incurs fees to pay for the room; and using a gift certificate that has already incurred the CC fees to pay for the room. I wouldn't pay a handling fee to buy a GC... Again, CC fees are a cost of doing business, no matter which end they occur.
I'd much rather make a GC sale, especially with the holidays coming up, then lose $$$ due to minimal costs that would happen anyway if the room was simply sold. Does not make cents to me.
.

I see what you're saying. The CC fees are getting paid regardless of where they are incurred. 2.75% of $100 GC plus 2.75% of the rest of the room rate comes out to be the same as 2.75% of the whole room rate.
I think....
Head....about to....explode....

 

[Morticia]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

1. It's a violation of your Merchant Agreement. You can discount for cash, but you can't charge for using a credit card, as far as I know.
2. Do you normally charge extra for using a CC to pay for a room? How is this any different?
.

I'm not advertising that the fee is covering credit card processing, I'm just saying that is our handling fee for it. I probably should have worded that better. But it is basically to cover the credit card processing fees. For the larger amounts, it won't totally cover it anyway. My thought was that the purchaser pays for a little of the fees on the front end. Then when it is redeemed, the credit card processing fees won't be as much because we are only charging their card for the balance.
No, we do not charge extra for using a credit card. It's just an expense related to doing business.
So no one does a handling fee/processing fee or anything extra? You just sell it at whatever value it is?
.

So no one does a handling fee/processing fee or anything extra? You just sell it at whatever value it is?

Correct. I don't even charge extra for mailing them.

 

[Momma Smurf]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

Am not sure I understand why you would charge for CC processing, do your guests normally only pay cash?
98% of our guests use a credit card for the room, so there's really no difference when buying/using a GC, the CC processing fee for either is just a normal CoB and not redundant. Or am I missing something?
.

No, we don't charge anything extra for CC processing. I think our PO's did at one time, because several returning guests pay in cash, then ask if we still charge extra for using a CC.
I was just thinking about trying to offset some of the CC fees. I want to barf every month when I get that CC processing fee expense come through.
.

Hmmm, I personally don't see how you can differentiate between using a credit card which incurs fees to pay for the room; and using a gift certificate that has already incurred the CC fees to pay for the room. I wouldn't pay a handling fee to buy a GC... Again, CC fees are a cost of doing business, no matter which end they occur.
I'd much rather make a GC sale, especially with the holidays coming up, then lose $$$ due to minimal costs that would happen anyway if the room was simply sold. Does not make cents to me.
.

I see what you're saying. The CC fees are getting paid regardless of where they are incurred. 2.75% of $100 GC plus 2.75% of the rest of the room rate comes out to be the same as 2.75% of the whole room rate.
I think....
Head....about to....explode....
.

No need to explode.. Yes it all equals out! YAY.

 

[gillumhouse]

Ok, so what we've decided to do is charge the amount of the gift certificate and a $5 flat fee to cover the cost of credit card processing. That I can do all online. So we'll see how it goes!.

1. It's a violation of your Merchant Agreement. You can discount for cash, but you can't charge for using a credit card, as far as I know.
2. Do you normally charge extra for using a CC to pay for a room? How is this any different?
.

I'm not advertising that the fee is covering credit card processing, I'm just saying that is our handling fee for it. I probably should have worded that better. But it is basically to cover the credit card processing fees. For the larger amounts, it won't totally cover it anyway. My thought was that the purchaser pays for a little of the fees on the front end. Then when it is redeemed, the credit card processing fees won't be as much because we are only charging their card for the balance.
No, we do not charge extra for using a credit card. It's just an expense related to doing business.
So no one does a handling fee/processing fee or anything extra? You just sell it at whatever value it is?
.

I sell for the value but my way of getting around it is to ask the purchaser to send me a check. Although 3.5% for manual entry is still better than $0, it usually works and they send the check.