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3% transaction fee for using Ford Reward Visa to make purchase?

colinl

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Those not a business owner might just be surprised at how much credit card fees add up each month for a business. 3-4% charges for credit ( Visa, PayPal, etc.) can eat up about all of the net profit on a vehicle. That is the number one reason a dealer will almost always have a limit on how much of a vehicle purchase you can put on your credit card. Nothing is free in this world, if you go to a bank you expect to pay interest....doing the up front fees at a dealer is exactly the same thing.
Then there is the bank.....especially on loans where the credit rating, down payment to purchase price is borderline, there are limits to what a bank will allow as down payment via credit card to approve the loan.
Absolutely. I'm in a construction trade and if on a rare occasion we get someone that wants to pay for something on a corporate credit card, we apply the transaction fee. We have to.

It's honestly more surprising to me that any dealership would let someone use a card for downpayment without a fee. It surely is an intentional, competitive strategy.

The dealership I bought my Maverick and Bronco from offers lifetime powertrain warranty on new Ford bought from them, which is appealing on both vehicles. My wife does very low miles but she'll absolutely have the Bronco after years the 5/60 is gone - she only changed vehicles now because our son needed her old SUV. And I'll unfortunately blow through the 60k miles in 2.5 to 3 years. At any rate, they definitely lose money on this, just like any dealership that accepts credit cards without passing through the transaction fee.
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MakinDoForNow

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This is not about the Ford visa at all. It's certainly the credit card policy at your dealership and the OP's.

As another reply stated, when a credit card is used the merchant pays a fee. Many dealerships pass that fee through if you try to use a card for a downpayment or entire purchase. This is especially true given the prevalence of rewards and cash-back credit cards today. If there were no fee any person could put down a deposit with their credit card instead of cash, then the next month pay the card off. Over a decade ago I stopped using my debit card except in emergencies and I run everything through a rewards card that I pay off every month. Everyone should do it, if they have the diligence to pay off each month and not allow a balance to build.
My dealer has $2500.00 CC limit at no charge. I put almost everything over $5 on my 2% Cashback card including my semiannual auto insurance renewal. I payoff my $2k-$6k card balance monthly. I pay my electric bill by card instead of taking the "we will pay you $1.50 if you sign up for bank draft" because my 2% Cashback will be $2-$7, etc...! 👌
 

TheQuixotic1

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I payoff my $2k-$6k card balance monthly. I pay my electric bill by card instead of taking the "we will pay you $1.50 if you sign up for bank draft" because my 2% Cashback will be $2-$7, etc...! 👌
Ford Maverick 3% transaction fee for using Ford Reward Visa to make purchase? this is the way
 

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I use my 2% cash back card to pay all my insurance, utilities and internet charges. It really adds up! I always pay my balance in full so I don't pay credit card interest.

It is not a Ford card though. I was denied for a Ford Visa card because I don't have the Ford App. I don't get points at the Ford dealer either unless I down load the App.

This crotchety old fellow doesn't download Apps. My wife worked in IT for forty years. ALL Apps are spyware and a security risk that I am not willing to take. YMMV.

Why is Ford willing to give me $200 worth of "points" to get me to download their spyware? I don't think that Ford has my best interests at heart. My attitude has developed over the course of Maverick ordering. I have been a loyal Ford (Mercury) buyer since 1970 and I never felt that Ford was out to get me before.

I recently bought a storage shed from a used car lot. If you put over $1,500 on a card, they charged a 3% fee. It is a normal business practice in my experience.
 

realshelby

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There is not much that is free in this world. 1-2% cashback from a credit card purchase? Who pays that? CONSUMERS DO! In extra costs for the products you purchase, in exorbitant interest charges for those that don't pay off the balance in FULL every month.
Not saying to not take advantage of it. But realize you are already paying up front for the money you get back. At least some of it. The things I have seen on credit reports tell me there is a good percentage of folks that are paying a windfall to the credit companies, so they are paying much of the 1-2% cashback funds.
 

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pa-outdoorsman

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There is not much that is free in this world. 1-2% cashback from a credit card purchase? Who pays that? CONSUMERS DO! In extra costs for the products you purchase, in exorbitant interest charges for those that don't pay off the balance in FULL every month.
Not saying to not take advantage of it. But realize you are already paying up front for the money you get back. At least some of it. The things I have seen on credit reports tell me there is a good percentage of folks that are paying a windfall to the credit companies, so they are paying much of the 1-2% cashback funds.
This is all true. That said, neither you or I is going to do a darn thing to change the "system" or eliminate the lack of financial discipline many others exhibit. So, for those who can actually use a credit card to cover everyday expenses and pay the card off each month, it is arguably stupid NOT to pay as much as possible with said card.

I mean, the grocery store doesn't offer me a discount on my bill to pay cash. Some gas stations do, but that's the exception rather than the rule. For the most part, there is no difference in cash price vs. credit price. So, that being the case, responsible use of a credit card is in fact free money for me. As for whether those with high credit card debt are footing the bill, well, I think that's obvious. Again, what can I do about that?
 

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What you write is true, and good on you for "working" the system to your advantage. But you might be surprised at how often I work a discount for cash folding money when buying higher dollar amount items.....
 

FabMav

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My CA dealership allowed me to put $2500 down when I purchased my ‘22 Maverick on my FordPass Visa. And I put $500 down on the card when I ordered my ‘23. No fees in either case.

Those who use 2% cash back cards should google 3% cash back cards. Many places are now starting to offer cards at the higher rate, so earn 50% more cash back!
 

Connect

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Yeah, starting to see this more and more. A fee for using a CC, all these years most companies have 'ate' the fee they pay the CC companies and now that is changing.
 

dcs12345

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Yeah, starting to see this more and more. A fee for using a CC, all these years most companies have 'ate' the fee they pay the CC companies and now that is changing.
That how it is at every gas station.….a cash price and a credit price

I’m now seeing at some restaurant, especially smaller local ones.
 
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TheQuixotic1

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It is not a Ford card though. I was denied for a Ford Visa card because I don't have the Ford App. I don't get points at the Ford dealer either unless I down load the App.

This crotchety old fellow doesn't download Apps. My wife worked in IT for forty years. ALL Apps are spyware and a security risk that I am not willing to take. YMMV.

Why is Ford willing to give me $200 worth of "points" to get me to download their spyware?
One workaround to this is having a dummy device and burner account.

A $50 android tablet/inactivate cell phone (or just an old one you don't use anymore) and a dedicated email account for all the associated spam.
 

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A lot of mom and pop restaurants I go to have a 5 percent upcharge policy on credit cards for this very reason. Can't say I blame them, credit cards are super convenient but the fees are insane when you think about it.
 

CTYankee

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For a brick and mortar retailer, as I was until last year, the squeeze is real.

My business was a truck and offroad retail store and installation shop. Between customers who want Amazon prices while having tech experts behind the counter and suppliers increasing fees every which way, pricing was always a challenge.

By the time all the bills were paid, we were happy if a gross profit of 35% turned into a net profit of 5%. Usually, it was less and certain months always showed a loss, which then had to be covered by the profitable ones.

Whether the fees are folded into product pricing or openly added to the sale, customers are probably paying those fees more often than they know.
 

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This crotchety old fellow doesn't download Apps. My wife worked in IT for forty years. ALL Apps are spyware and a security risk that I am not willing to take. YMMV.
It's not just apps, also operating systems on desktops, laptops, smart devices, basically on everything. All of them use the umbrella of "telemetry to improve your experience on the device". In today's digital word, there's no escape...

Whether the fees are folded into product pricing or openly added to the sale, customers are probably paying those fees more often than they know.
I can live with either one of the options, just don't like it when the fees are folded into the price and also openly added to the sale as well. ;)
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