"Service Charge" at Utopia a scam?

[Ryu]

I meant to ask this before but forgot. Once in a while when I pay by credit at Utopia, a girl tells me that the attendant has to pay a 10% service charge to the house. Some girls run the card without saying anything. Once Liv asked me if I wanted to pay the 10% for the girl. I don't get it - does management at Utopia charge the girls when the customers use visa or is this a play for tips? Can management even do that to the girls?

 

[Boris]

This Charge Sounds Pretty Familier.
Blue Pearl Does The Same Thing When U Charge It On Your Card.
Isn't Enough That These Owners Make A Good Buck As It Is, But No They Have To Go Ahead And Burn U With An Extra 5 Bucks Ontop Of The 50 That They Charge U For The Room Fee.

 

[Unholy]

I think it's no different than they guy who comes and washes your windows or seals your driveway. Pay by cheque and I charge you taxes, give me cash and I don't.

If you charge $120 on your card and the house keeps $40, he has to pay let's say 3% to visa $3.60, declare the $120 as income, wait for his money to be credited etc etc so at a $10 markup, it's probably a bargain for you.

 

[Jesse S]

The company that owns the debit machine sometimes makes deals that
the debit machine company gets 5%, and the business gets 5%.
Some strip clubs are now charging 15%.

 

[LadyLynn]

Once when I was there to see the lovely Sydney before she retired (sigh) I used my visa and she suggested that next time I use cash because they ding her some amount.

She explained it as a tax implication actually.

Anyway, cash is always better at a MP, just a couple of times, I have been without, the mood struck, and no ABM within sight. (and no, the ABM's that charge a 5.00 fee are not an option.)

So i put it on visa.

It's always fun getting those visa statements and you read it and say, "what the fuck is Ontario 3947857584983990?" Then you see 160.00 even and you go, "oh yeah"

 

[Leila L]

the credit card company charges them like 2 or 3 or even 4% depending on how much business they get. In my business, I always try to get people away from credit cards because it costs me extra, so i just tell them if you pay by credit card its 5% extra.

The only people that pay credit card is people that have no money.

 

[tammy b]

Yeah, and it's a lot harder to cheat the tax man also when the transaction is on the record isn't it.

 

[Apocalypse Cow]

As you can tell this kind of charge is standard. Just be grateful that Liv had enough sense to ask. I've had two just add it without saying anything.

 

[heidi]

I doubt that many people pay by credit card. It's likely so infrequent that it would never make an impact on the tax situation given the large amounts of cash income brought in.

In any event, if you deposit to an account that CRA is not aware of it's quite remote that the clowns would ever find it.

in the end it's just a money grab.