Going forward all merchants have to consider the Groupon/GOOG Offer cost while pricing. They already factor in credit processing - and can't discriminate on Cash customers. eventually a customer paying cash and not using any promos will pay a lot more for the same merchandise.
Actually, that's not true. As of today, because of this[1] $7.2B settlement, merchants will now be able to charge customers that use cards a fee for doing so. This is already the case in Australia as I understand it, and card use has not decreased as a result. I personally use cash for most store/ restaurant purchases (I used to work in the Merchant Acquirer space), so I will finally be getting a better price in addition to reducing my behavior-tracking surface area.
Comments
"Mason says his hosting gig, which he agreed to discuss on the condition that the establishment not be named"
Why?
Probably so people didn't go to the restaurant and heckle him?
Or ask for 50% discounts.
Hey restaurant, You want a customer? Let me get you a customer!
Groupon: How much is a lunch meal?
Restaurant: $10
Groupon: Great, here Ill give you $2.50 for it!
Restaurant: uh.. I'm not so sure about this...
Groupon: Hey customer! Come get this lunch deal. I got a great deal for you, $10 lunch for $5!
Customer: Uh, ok.
Groupon: Sweet! I just pocketed $2.50! Isn't this a great deal!
Restaurant: WTF! I just lost 75% of my gross by doing this with Groupon!
Going forward all merchants have to consider the Groupon/GOOG Offer cost while pricing. They already factor in credit processing - and can't discriminate on Cash customers. eventually a customer paying cash and not using any promos will pay a lot more for the same merchandise.
Actually, that's not true. As of today, because of this[1] $7.2B settlement, merchants will now be able to charge customers that use cards a fee for doing so. This is already the case in Australia as I understand it, and card use has not decreased as a result. I personally use cash for most store/ restaurant purchases (I used to work in the Merchant Acquirer space), so I will finally be getting a better price in addition to reducing my behavior-tracking surface area.
[1]http://newsroom.mastercard.com/2012/07/13/mastercard-speaks-...
Took about 45 seconds of Google+Yelp to determine it's http://www.yelp.com/biz/mirai-chicago