Credit cards, taxes at massage places

[mellonhead]

Per their merchant agreements, businesses cannot charge more for using a credit card...though they may give a discount for using cash (i.e. Canadian Tire). If anybody says to you "it will cost you MORE to use your card", rather than "I will give you a 3% discount if you pay me cash", feel free to call your bank and complain. Depending on your issuing bank, they may also give you a small credit ($5 or $10) on your account, for assisting them in monitoring their merchant activity.

*** Thread split from here, where it was innapropriate. M2 ***

 

[Phin]

I have been here many times, and I can tell you the extra they charge for using a credit card is taxes, that's it.
And as far as Joe goes, hats off to him. As I have said in other threads before, a business is a business, no matter what business it is. Treat your clients well, weather it's the girl giving you the massage or the receptionist saying hi when you walk in, customers will come back.
Speaking of coming back, this Lea sounds pretty good

 

[Phin]

I don't want to harp on this topic, but anytime someone charges you for something, they are supposed to charge you both taxes. It's the law. Taxes are not included in anything, except I think milk. And the reason why MP's (or any place for that matter) don't charge taxes when you pay cash is because they are not declaring it, and it goes straight in their pocket. When a credit card is charged there's proof of the transaction, so they must charge taxes or risk getting audited and fined for not declaring income.
Now let's get back to the women...

 

[Phin]

This my last reply about this "cash business" stuff...

Dak, I have owned and operated a business for 25 years, which is probably longer than you've been alive, so please don't lecture me about how a cash business works.
But the one thing I am confused about, is where do you get an amount of $50? I know when I pay for a massage it's either $40 cash, or $46.01 (with both taxes) by credit card. I know MP's must declare some of the cash, but certainly not all of it. The government has no way to know or control how many clients pay for massages a day, which is certainly a perk of owning such a business.


Now enough!