OUR ADVICE: DO NOT DO BUSINESS WITH SCHUMACHER AUTO OR BMW OF COCONUT CREEK. BOTH CIRCUMVENTING CONSUMER PROTECTIONS…
BY: CONSUMER DESK | BocaNewsNow.com
DELRAY BEACH, FL (BocaNewsNow.com) (Copyright © 2024 MetroDesk Media, LLC) — Schumacher Automotive joins our list of local car dealers charging questionable fees to consumers using credit cards for service, parts, or even vehicles. The Schumacher Automotive Group, once a respected local dealer, is the subject of several consumer complaints logged with BocaNewsNow.com.
According to our readers and documented in invoices provided to us, Schumacher is assessing a three percent credit card fee for all purchases. The practice is legal but highly suspicious, as forcing customers to use cash or debit cards eliminates a level of consumer protection. It’s easy to dispute a credit card charge if a customer alleges fraud or bad workmanship. A customer has little recourse if payment was made in cash. Even more notable: Schumacher claims the three percent credit card fee is “non-refundable.” If you buy a widget, for instance, and that widget fails, Schumacher claims they’ll refund the price of the widget but not the three percent you were required to pay to use a credit card. Consumer experts suggest that Schumacher’s practice on refunding the three percent is illegal. Attorneys may be preparing to test it in court.
The Schumacher revelation comes just days after BocaNewsNow.com reported that BMW of Coconut Creek, formerly known as Vista BMW before it was sold months ago, is also assessing a three percent fee for credit card transactions. While merchants deal with — and often complain about — credit card processing fees, they’ve almost universally been a cost of doing business. A merchant can deduct the processing fee as a business expense when taxes are filed. It’s also notable that very few processing companies actually charge 3-percent, with most in the 2.2 to 2.8 percent range. It’s unclear what Schumacher and BMW of Coconut Creek are doing with the apparent overage and whether it’s being recorded as profit which would be taxable.
As we reported, BMW of Coconut Creek threatened BocaNewsNow.com after we reported on its credit card fee. We also reported on Friday that BMW Corporate will not publicly say that it supports any of its dealers assessing a credit card fee for customers. As for Schumacher, we’ll let you know if we hear anything. For now, you may want to find other dealers that do not assess fees. In fact, if you are a dealer that does not assess a fee, shoot us note through our news tip section, above. We’d be happy to give you some free press.
For customers who see other dealers or merchants assessing a fee, please let us know about them. We will expose those companies in our new credit card fee updates.
This is becoming the norm. I’ve seen it at motorsports dealers too, like Riva. Had to use a debit card to avoid the fee.
I was at Schumacher Subaru last week and saw the 3%charge. This is a ripoff and new profit center for the dealership. As a x retailer, I know that American Express charges the most. For myself, it was in the 2%range while Visa and MasterCard was less. It is also negotiated. As big a volume that Schumacher does, their rate should be less than I paid. For myself, I will not be buying another car from this dealer and will eventually find another place to get my car serviced. I will not except this ripoff.
I can assure you, this is not a profit!!
A lot of companies are taking big hits on paying credit card fees.
Schumacher has to Pay 3% even on a debit card that you use, however on debit cards, they do not pass that fee onto the consumer. I think that’s very fair!
Gunther Volvo in Coconut Creek is doing the same “dishonest“ credit card charge and not telling the individuals prior to presenting their bill
Gunther VW in Coconut Creek is also doing the same thing. Paid for my oil change a couple weeks ago with my debit card instead as it’s a rip-off move on their part. I doubt I’ll be going back to Gunther accept for warranty work going forward. Shame on these dealers!!!
Napleton dealerships in West Palm are also charging a credit card fee. This simply something that car dealer’s Dealer Associations are recommending as “good business practices” to enhance profitability. Bad for consumers. The State of Florida should outlaw it for any business category.
It’s not only car dealers charging a fee for using a credit card. I’ve encountered others:
Dentists
Doctors
Nail salons
Hair salons
I’m sure there are others.
ALL THE DISGRUNTLED PEOPLE SHOULD SEND THIS NEWS ARTICLE TO THE IRS…..3% X HOW MANY 100 OF THOUSANDS OF DOLLARS SCHUMACHER SHOULD BE PAYING IN TAXES SHOULD PUT AN END TO THEIR THEIVERY
There is nothing illegal or even wrong about having the customer pay the service fee for using a credit card, which is basically borrowing money to make their purchase. Why should the merchant pay the fee of the customer who is taking out a loan to make the purchase? The 3% charge goes directly to the credit card processor, not the merchant. It is also legal to charge the fee for purchases with a debit card as long as there is a posted notice that payments in cash are accepted with no extra fee.
It’s not borrowing money. It’s a convenience and a customer protection. Merchants charging a fee should be publicized and ostracized. Write it off as a business expense. It’s just that simple.
A fee charged by a credit card company is a cost of doing business.
For example … Should there be a fee for the RENT that an establishment pays? Or, the cost of their utilities. Or, an additional fee because an employee got a raise …. Got it?
capital carpeting is charging for credit cards. i bought my carpet at another dealer
Famous deli in delray chargers a 3 percent fee on all credit cards including debit cards…… With there prices so high ……..??
Several local restaurants also impose the 3 percent fee “conscience fee” if a charge card is used.
Yes, it a RIP OFF for sure
Coral Springs Auto Mall
is notorious for padding bills and charging for services you don’t really need. Including this new Merchant charge.
Please inspect every transaction and question everything on their bills.
AND if you are really smart don’t go there.
There are so many other places to buy cars and service.
Gunther in coconut creek does this. Even on service appointments. 3% for my oil change.
I find the charging of credit card fees in the range of 3.5% to 4.0% to be common in restaurants in Delray Beach and Boca Raton. As the article mentioned, merchants are likely charged significantly less than that.
The same percentage is charged on debit card transactions even though those fees are probably costing the merchant a flat amount of 50 cents or so and does not vary based on the amount transaction amount. I have never seen a merchant charge less for debit card transactions.
I carry cash with me to make purchases when I would be charged these fees for using a card.
Many of the credit card companies collect the 3% directly. Not the dealer or the restaurant, etc. BocaNews, you need to do a little more research before you crucify them.
Profit margins are slim. If you are working off a 10% net do you really want to give a third of your profit to the credit card company?
You do what you have to do to keep customers coming back without it looking like you’re running a scam.
You call it a scam. Why? There are all sorts of avenues to remedy a problem.
And lots of big name dealers listed above. Are all car dealers running a scam? I think not.
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