Posted on 03/06/2008 2:42:54 PM PST by hardknocks
It is voluntary negotiations, meaning that merchants and credit card companies/banks both have to agree to participate.
This is not mandated negotiations.
I really would like to read the entire proposed Act before commenting further.
This is why Arco is a cash gas station and charges a fee to use a debit card. Instead of charging everyone the “credit card” price, they charge the cash price. Those wanting to use the plastic are the ones who pay for it.
Now I didn’t study this regulation, but I can attest to the fact that there is are anti-competitive and transparency problems in the credit card/merchant relationship. I represented a guy (as attorney) in a dispute with one of many large “clearing house” type companies that actually represent the card issuers. My guy is sort of a local “distributer” of credit card services to merchants. I can tell you that the rate structures and the multiple variable categories of different fees and calculations was virtually impenetrable. Even if you wanted to compare one issuer to another or try to independently verify that you were being charged and paid correctly, it was virtually impossible without a forensic accountant.
And that's why places like Starbuck's, Abercrombie & Fitch, Aeropostale, Crate & Barrel and Banana Republic stay in business. Their prices are so competitive with other retailers.
Most of their customers do not shop on price and are idiotic enough to just pay their ridiculous prices. They wouldn't notice or care that the price should have dropped proportionally to the sellers overhead being reduced.
Well, nobody's telling them they can't do it, but Arco doesn't take credit cards and they do just fine, and they have the least expensive gas in town.
They are competitive in their own market, and this legislation encompasses all merchants so that would include Walmart and discount stores.
Question, if ALL the Gasoline stations were owned by the same company and set the price for gas based on economic factors of the consumers of gas would you be for such?
In other words would you be for a system where how much gasoline you buy and how much income you make factor into the price YOU pay for gas?
For instance if you have an average income and don't drive over 10K miles a year is it ok for you to pay say 5 bucks a gallon but someone who makes double your income and purchases gas for 30K miles of driving a year pays 2.50 a gallon for gas?
Debit cards do have their uses, and not ALL debit cards are created equal.
I use both Credit Cards and Debit cards and I take advantage of their benefits and bonuses.
We have one debit card that pays us 2% cash back. When our cash back deals are not available on our credit cards we always use it. However sometimes we get up to 5% back on some of our credit cards.
Discover card seems to always have some sort of Cash back going on but it changes on what it is good for. We seem to get alot of those deals for Hotels and Restaurants.
We use the Discover alot if we go out to eat and then when the restaurant bill shows up on your credit card account online you pay it before you get any interest.
Instant 5% discount, I'll take it every time.
But I have many friends who refuse to use credit or debit cards. Its like all financial vehicles, most have value IF you know how to use them.
Well, Mr Wizard, I use it as a credit card only and only keep a limited amount of money on that account. If I am traveling or know I am going shopping ( with wife ) I go by the bank/ATM and get out lots of cash ( I also carry a weapon so I don’t sweat the cash ).
In an earlier life my ex ran up credit cards I did not know about and had to pay off when she moved on so I have altered my money management. I swore never again. The only debt I have is my house and my wife’s car, mine is paid off. I have yet to find a store that doesn’t want cash.
I don’t buy very much as I don’t need very much. I have the same clothes I have had for years, same 5 year old small tv, same adequate furniture, keep my cars for more than 2 years etc...
well an old dog has learned a new trick i was unaware of special cash backs etc available for debit card users i’ll have to look in to this
THANKS
In a free society, is it government’s job to set prices to your taste?
Do you agree the government should regulate the market when monopolies are involved?
Statists routinely lie about the existence of monopolies by expanding the definition of monopoly beyond its meaning. Those few monopolies that do exist are usually - perhaps always - extant because the government itself establishes them and/or protects them from competition. Want competition? Withdraw government sponsorhip.
In the instance here, no monopoly exists. The proposal is intended as a mechanism for Cannon and Conyers, their campaigns, and their cronies to solicit current and future bribes from merchant associations and credit card companies. And, like the cost of taxes, the cost of those bribes eventually will be passed on to consumers.
Denial ain't just a river in Egypt my friend.
There's VISA/MAstercard, and then there is everyone else. Try setting up terms with VIsa/Mastercard. Its their way or the highway. Now Try and run a Business without Accepting Visa/MAstercard. (BTW if you do so then of course you can't accept VISA/Mastercard Debit cards either.)
And larger companies like Sears or Wal-Mart get better terms with VIsa/MAstercard thus skewing competition even more. Which would not be a problem IF one had an alternative way to take Mastercard/Visa but being there isn't its just tough luck.
I hate government intervention but in this case it is right to cut the stranglehold VISA/MAstercard has on Credit Card terms with Merchants.
I mean if you are going to have antitrust laws then you should enforce them. They did so with Microsoft, why is Visa/Mastercard any better?
Hey, I understand. If you don’t like a price, use government force to change it. Your ethics and those of a street thief are pretty much the same, except the street thief has more candor.
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