Posted on 01/27/2013 7:28:13 AM PST by Uncle Chip
A new rule going into effect Sunday could cost you more when shopping with a credit card at some stores.
Visa and Mastercard have agreed to let merchants add a service charge equal to the cost of processing a credit transaction to the bottom line. The cost of processing is usually 1.5 to 3 perc cent, and merchants are capped at a 4 per cent fee under the agreement.
The rule change was made as part of settling an antitrust suit brought by retailers.
Merchants will still not be allowed to add a surcharge to debit card transactions.
However, few stores seem interested in raising their customer's costs.
'We have discussed the settlement with many, many merchants, and not a single merchant we have spoken to plans to surcharge,' said Craig Sherman, spokesman for the National Retail Federation, which was not involved in the lawsuit.
Wal-Mart, Target, Sears and Home Depot all told NBC News that they had no plans to add a credit card surcharge.
California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas all ban credit card surcharges.
(Excerpt) Read more at dailymail.co.uk ...
IMHO - it’s about time.
Amex was the worst - they’d cook up backroom deals with corporate clients, then charge merchants 8% on usage.
Oh brother. This will happen just not now but within two years, we will be stuck with the fees everywhere. I am so sick and tired of getting screwed with everything we do these days. I am telling you that soon we might have about 10 bucks a week left that is actually ours.
Those in California will shi! a brick. Sales tax out of sight and add up to 4 percent more for using credit cards. I'm out of here. Stick the credit cards up their collective butts.
I’ve seen “cash discount” before. once or twice, in the past... say 30 years of shopping.
Any store that starts adding the surcharge will find their business severely reduced. Unless all of them do it, none of them will do it. (Excepting super ritzy stores where average Americans don’t shop). There are multiple stores in many areas, and people will not stand for paying more at one store because of a surcharge when they can go a different store in the area (or the mall) for a lesser price.
“...Merchants will never reduce prices of their products, you can bet on that.”
It really depends on the Merchant. In the smaller, brick and mortar stores, where you may sometimes deal with the owner, or an owner informed associate, you can get a discount by paying cash. You just have to ask at check out time. I have done this many times locally or as a tourist.
Most of our credit card users are the government agencies. I for one like the idea of adding our bank processing fees of.5% to the bill.
Lots of the card purching is in the thousands of dollars.
Most of our credit card users are the government agencies. I for one like the idea of adding our bank processing fees of.5% to the bill.
Lots of the card purching is in the thousands of dollars.
Most of our credit card users are the government agencies. I for one like the idea of adding our bank processing fees of.5% to the bill.
Lots of the card purching is in the thousands of dollars.
Spec’s Liquor stores in Houston area used to offer a discount for cash - don’t know if they still do or not, booze isn’t in the budget right now.
It’s too bad, because a Merchant displaying “American Express Gladly Accepted” was sending a red flag signal to customers that he overcharged.
It does sound better when you call it "cash discount" vs "credit card surcharge."
It is not uncommon out here to see separate prices at gas stations for cash vs credit cards.
I was never sure whether debit card transactions were the same as credit card transactions as the same card works both ways.
We have been using credit cards wherever and whenever they are allowed - thanks to credit card points, we brought the grandkids to Disney and we get the bulk of our Christmas gifts. I figure the cost of credit cards is already built in to the prices merchants charge. That said, if the discount for cash is a better deal than credit card points, then we'll be switching back to cash.
“Land of the free and the home of the brave” is now certainly Land of the fee and the home of the slave.
I pay most of my bills with a CC because I get the 1% back [it adds up over time] and I pay off the balance each month.
Several months ago, I noticed when getting ready to pay my gas company (heating) bill that they assessed a ‘processing’ fee for CC transactions now. I reverted to the automatic bank withdrawal I had on file, as it does not (so far) have a ‘processing’ fee. It isn’t the amount of the fee; it is the principal—they already assess fees for:
Customer Charge,
Delivery Charge,
Energy Efficiency Cost Recovery,
Weather Normalization Adjustment,
Franchise Fee
and City, County, and State taxes
in addition to the Cost of Gas Charge.
All of those add-on fees are about equal to the the Cost of Gas Charge amount.
They are as bad as the phone companies (which are losting customers in masses) and cable companies with all their price increases and add-on fees.
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