Pelletsales.com Credit Card Fees

They do it because they can. Youre right though, in that a consumer has to factor in ALL costs when purchasing over the 'net....including fees and delivery.......

When you factor in delivery charges, pelletsales is no more cost effective than several local hearth shops. I already have plenty of fuel for the 2009-2010 heating season, so they have pretty much lost me as a customer due to excessive delivery charges and processing fees.

tflight said:

Lousyweather said:

because they can.

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If by that you mean "because so far they are getting away with it", then I agree. But according to Visa "they can't do that".

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can, and have been for a couple years now, right?

richg said:

When you factor in delivery charges, pelletsales is no more cost effective than several local hearth shops. I already have plenty of fuel for the 2009-2010 heating season, so they have pretty much lost me as a customer due to excessive delivery charges and processing fees.

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agreed, 100%, but Pelletsales does often make pellets available where they otherwise wouldnt be available. Bottom line: the savvy consumer does his/her homework.

At the risk of "setting off" some fellow "pellet heads", there is, I think another way to look at the pelletsales.com credit card charges.

My take is that they are attempting to offer pellets at the lowest possible prices ( for them) and still remain a viable company.

If purchasers prefer to pay by personal check, there is no additional service charge.

In my case, after reading all of the threads I could find about price predictions for the coming heating season, I opted in on an early Spring buy which, for a brief time, offered free shipping.

I purchased in late January for an April delivery.

I could have paid by check and saved a $22.00 ( and a few cents) credit card use charge. Rather than tie up my money for 2 to 3 months by paying by check, not to mention being concerned about prepayment on goods not delivered, I felt that the charge was a reasonable cost of doing business and protecting me since the card is not charged until the pellets are delivered. ( All that happens is that pelletsales.com checks with the credit card company to verify that the card is good for the amount of the purchase, but the card is not charged.)

I would also suggest the thought that by doing this, PelletSales is not charging a hidden cost to all customers, just passing on a cost they would have to pay the credit card companies for those who do not wish to pay by check.

tflight is right, what they are doing is not on the up and up. Justify it all you want, when you sign that merchant agreement you say you'll not do that, and they are. Black and white.

You cloud look at it from the other end as well they are charging you less if you send a check it is not another charge but a discount for using a check and there is nothing wrong with. people ask for cash deals all the time and i dont see anything wrong with what they are doing if you dont like the pricing then buy it from another place it really is not a big deal.

I look at it this way. A merchant should not pay a red cent to accept a credit card. If merchants refused credit card companies then credit cards don't exist right? I know that the common take is that a merchant who pays to accept credit cards is getting sales they otherwise would not have gotten because customer didnt' have cash in hand, but I have a feeling that the cc co would fold if enough pressure were exerted on their existance.

second that, people are always asking for deals. Cash discount should be brought to peoples attention before the sale so they know they have that option, again I say option cause ultimately it is up to the customer. There is no breach of contract for offering a cash discount, but a business cannot say we charge more for using plastic. I've been down that road. Also consider the crazy interest rates they are getting out of the people who can't/aren't paying off the cards. So they are gettin a cut on the front and back end. That's as bad as the mob, oh wait I meant the goverment

They are charging a prossesing fee, Isn't that enough! I used to sell stuff on eBay and they would pull your listing if you tried that. Not a fair practice.

jay

I find myself agreeing with Shane and BoF.....but then, Im a merchant. Maybe offer a discount for cash or check....and Im even hedging on a check. Cant add a fee, but we can discount for cash! As a mechant, though, we cant ignore the credit card......its far too common, in fact more common than cash now.....so, by not accepting it, we'd stand to lose alot of business......and thereby make the pooly-run, usurious credit card companies richer

you would think that would be what the processing fee was for or they could include the cc fee in that if you were paying with plastic, i.e. processing fee is more if paying by card, leave the processing fee as a variable type charge. I have never had any experience with pelletsales.com beyond glancing at their website and talking with them at trade shows. The old saying is "cash is king" but may soon be taken over by the plastic prince! Lousy is right, the way people and banks work today credit card are a neccesary part of doing business.

Just to let the Hearth.com members who are unhappy with pelletsales.com's practice of charging a processing fee for purchase by credit card know, I sent them the following e-mail:

You folks should be aware that there is a thread going on, on the hearth.com website, which you co-sponsor, about the processing fee you charge for credit card sales ( URL below). I have no problem with what you are doing and have defended it as "The Old Ranger", but thought you should be aware in case someone from the company wishes to answer the critics.

The last time there was a forum question about pelletsales.com, I forwarded a link to the thread to them and one of the owners posted an answer.

Lets see what happens this time . . . . .

Again, and at the risk of angering fellow members, I have no personal knowledge of the contractual arrangements PelletSales has with the credit card companies, but personally have no problem with what they are doing. Wish more businesses would ( or could ) do that and I would use cash or checks more often, but WOULD NOT HAVE in this case.

How is this different than the gas stations that give you the lowest price for gas if you pay cash? (there are a few around manchester, NH and it is worth it)

i just went on there site and dont see the fee any place it is just a cash dicount now so i guess it doesnt really matter anymore they have already changed it.

Wow,
That was fast.

I do not have any doubt that TFLIGHT is correct. Just do not like it.

The part that bothers me the most is that the credit card companies, because of the current consumer structure, have the power to dictate terms like that to the business owner and then charge incredible interest fees to those who often can least afford them.

Won't change because some of us don't like it as a business practice, but it seems, as someone already mentioned, the credit card companies have things going their way, pre and post purchase.

I for one will NOT be reporting PelletSales to the credit card folks.

Stoveguy13,

Re your post: "i just went on there site and dont see the fee any place it is just a cash dicount now so i guess it doesnt really matter anymore they have already changed it."

I just checked their site for my ZIP code and the processing fee is still there.

Perhaps they are leaving it in my ZIP code area, for my viewing pleasure, because I defended their alleged illegal practices . . . . ( JUST KIDDING . . .)

Ranger

ok it is on the check out screen guess i should have gone deeper because it use to be on were you see prices. sorry . i still dont see the big deal with it is from my stand point unless you work for visa or another credit card company did they do something to you tflight?