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Shops to start charging you for paying by credit card from tomorrow
http://www.dailymail.co.uk/news/article-2268744/New-fee-using-credit-card-begins-Sunday-retailers-sa ^ | January 26, 2013 | Daily Mail Reporter

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 ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: creditcardfees; creditcards; creditcardsurcharge
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1 posted on 01/27/2013 7:28:22 AM PST by Uncle Chip
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To: Uncle Chip

IMHO - it’s about time.

Amex was the worst - they’d cook up backroom deals with corporate clients, then charge merchants 8% on usage.


2 posted on 01/27/2013 7:31:35 AM PST by P.O.E. (Pray for America)
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To: Uncle Chip
Stores already have their card fees hidden within their sales price just as they've included every other running expense within the price you pay. Does anyone really think they'll lower the shelf price to accommodate those who pay with cash? No, I didn't think so.
3 posted on 01/27/2013 7:32:31 AM PST by bgill (We've passed the point of no return. Welcome to Al Amerika.)
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To: Uncle Chip

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.


4 posted on 01/27/2013 7:33:16 AM PST by napscoordinator (GOP Candidate 2020 - "Bloomberg 2020 - We vote for whatever crap the GOP puts in front of us.")
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To: Uncle Chip
So let me understand this. Merchants that decide to do this will still keep prices of products which included the cost of using credit cards. So we probably will still be paying both ways since Merchants will never reduce prices of their products, you can bet on that.

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.

5 posted on 01/27/2013 7:36:47 AM PST by Logical me
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To: bgill

I’ve seen “cash discount” before. once or twice, in the past... say 30 years of shopping.


6 posted on 01/27/2013 7:37:39 AM PST by VAFreedom (maybe i should take a nap before work)
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To: Uncle Chip

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.


7 posted on 01/27/2013 7:42:59 AM PST by driftless2
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To: VAFreedom
I’ve seen “cash discount” before. once or twice, in the past... say 30 years of shopping.

I saw it a week ago at a gun store. 2% discount for cash. I'm guessing 2% is what they were being charged by the credit card companies.
8 posted on 01/27/2013 7:43:01 AM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: Logical me

“...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.


9 posted on 01/27/2013 7:44:08 AM PST by duckman (I'm part of the group pulling the wagon!)
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To: Uncle Chip

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.


10 posted on 01/27/2013 7:50:21 AM PST by primatreat ("gimme me "Obama EBT free money card I can pick boogers and flick them at white folks on the bus!!)
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To: Uncle Chip

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.


11 posted on 01/27/2013 7:50:21 AM PST by primatreat ("gimme me "Obama EBT free money card I can pick boogers and flick them at white folks on the bus!!)
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To: Uncle Chip

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.


12 posted on 01/27/2013 7:50:28 AM PST by primatreat ("gimme me "Obama EBT free money card I can pick boogers and flick them at white folks on the bus!!)
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To: LostInBayport; VAFreedom

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.


13 posted on 01/27/2013 7:52:11 AM PST by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Uncle Chip
Merchants will still not be allowed to add a surcharge to debit card transactions.

Free market my hiney.
14 posted on 01/27/2013 7:56:01 AM PST by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: P.O.E.
I wholeheartedly agree that it is about time. As a merchant that accepts credit cards, as well as a developer of POS systems, it drove me nuts that Visa/MC/Amex/Disc would roll out generous "incentives" and "freebies" for card holders, then up the rates on merchants to pay for them!

Who is really giving who 2% cash back?
15 posted on 01/27/2013 8:02:39 AM PST by Rebel_Ace (Tags?!? Tags?!? We don' neeeed no stinkin' Tags!)
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To: P.O.E.

It’s too bad, because a Merchant displaying “American Express Gladly Accepted” was sending a red flag signal to customers that he overcharged.


16 posted on 01/27/2013 8:08:15 AM PST by Lonesome in Massachussets (What word begins with "O" and ends in economic collapse?)
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To: LostInBayport
2% discount for cash

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.

17 posted on 01/27/2013 8:13:52 AM PST by Rio (Tempis Fugit.)
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To: duckman
I think it depends more upon whether or not the storeowner or employee is putting the transaction "on the books".

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.

18 posted on 01/27/2013 8:18:46 AM PST by old and tired
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To: Uncle Chip

“Land of the free and the home of the brave” is now certainly Land of the fee and the home of the slave.


19 posted on 01/27/2013 8:19:45 AM PST by Student0165
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To: Uncle Chip

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.


20 posted on 01/27/2013 8:20:52 AM PST by TomGuy
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To: Uncle Chip

Socialism Is Legal Plunder - Bastiat

On the road to digital totalitarianism.

(100% FRNs/cash) Eliminate the FED, DEPOPULATE socialists/totalitarians from the body politic.

live - free - republic

Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. - Bastiat


21 posted on 01/27/2013 8:23:07 AM PST by PGalt
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To: VAFreedom

Don’t forget gas stations.

I’m more optimistic than most here that we might start to see cash discounts at more places, especially Mom & Pop places.


22 posted on 01/27/2013 8:29:50 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: driftless2

You are correct. The truth is people who use their credit cards, spend more.
It would be a foolish move for retailers to add a “surcharge”.


23 posted on 01/27/2013 8:31:13 AM PST by svcw (Why is one cell on another planet considered life, and in the womb it is not.)
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To: Uncle Chip

So credit cards take more processing than cash? I don’t believe it. The card readers can make the transaction faster than a cashier can figure out the correct change. The credit cards provide accounting services to the merchants. Credit cards cut down on emplyee theft. This is just another way to steal money.


24 posted on 01/27/2013 8:31:22 AM PST by LoneRangerMassachusetts (The meek shall not inherit the Earth)
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To: LoneRangerMassachusetts
The card readers can make the transaction faster

I can make a local CC/DebitC purchase. By the time I get home and check my CC/Bank account, many of the card charges are already posted or pending.


25 posted on 01/27/2013 8:41:53 AM PST by TomGuy
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To: Uncle Chip
Wal-Mart, Target, Sears and Home Depot all told NBC News that they had no plans to add a credit card surcharge.

Well, we know why WalMart for sure doesn't want to do it. They don't want the EBTer's having a monkey fit in their cash register areas...

26 posted on 01/27/2013 8:43:27 AM PST by Gaffer
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To: Rebel_Ace

Gas stations in Jersey are giving a cash discount, about 5 cents per gallon. Lines are sometimes out into the highway.


27 posted on 01/27/2013 8:45:32 AM PST by P.O.E. (Pray for America)
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To: bgill
Does anyone really think they'll lower the shelf price to accommodate those who pay with cash? No, I didn't think so.

It wouldn't be hard to offer a cash discount at checkout. But cash purchasers are already subsidizing credit card users. The shelf price already reflects the credit card fees.

Most cash payers don't realize that they're subsidizing credit card users. And it isn't in the merchant's interest to tell them.

That's why I pay by credit card everywhere, and then pay off the bill at the end of the month.

BTW, there may be a minimum fee per transaction, charged to the merchant, which is why "$10 minimum on charges" signs used to be common. I have to pay a $1 minimum with the credit card processor for my on-line business.

28 posted on 01/27/2013 8:53:45 AM PST by St_Thomas_Aquinas
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To: Uncle Chip

Sears makes a ton of money from its own credit card. The company takes in quite a bit of money from cardholders’ interest. I doubt Sears has any desire to reduce that income.


29 posted on 01/27/2013 8:54:15 AM PST by Darnright ("I don't trust liberals, I trust conservatives." - Lucius Annaeus Seneca)
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To: P.O.E.

Stores already charge more to absorb credit fees. This is just a move to start profiting on top of sales.


30 posted on 01/27/2013 8:54:29 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: Rio
I was never sure whether debit card transactions were the same as credit card transactions as the same card works both ways.

Our local gas station has told me they have to pay the 3% surcharge for credit card, but debit card they do not. Same with a local merchant I do a good deal of business with. I always try to pay that guy with a check to save him the 3%. That adds up when you're spending hundreds of dollars at a time. My price doesn't change, so he has less expense=more profit if I pay by check or cash.

I don't understand how this is "new" anyway. It's been this way for a while.

31 posted on 01/27/2013 9:04:04 AM PST by Big Giant Head
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To: primatreat

Government credit cards will deemed exempt fron the surcharge.


32 posted on 01/27/2013 9:13:39 AM PST by Minutemen ("It's a Religion of Peace")
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To: Gaffer
Well, we know why WalMart for sure doesn't want to do it. They don't want the EBTer's having a monkey fit in their cash register areas...

Yeah, it's bad enough being behind an EBT'er when their "account" is 38 cents short of the ticket total, then waiting for them to decide which bag of potato chips, ice cream or soda pop to forego.

33 posted on 01/27/2013 9:24:19 AM PST by Minutemen ("It's a Religion of Peace")
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To: P.O.E.
Gas stations in Jersey are giving a cash discount, about 5 cents per gallon. Lines are sometimes out into the highway.
Since the average car has a gas tank smaller than 20 gallons, the amount saved is less than a dollar on a fill up that might cost over $60. Oy ...
34 posted on 01/27/2013 9:53:42 AM PST by oh8eleven (RVN '67-'68)
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To: bgill
Stores already have their card fees hidden within their sales price

It's not included in everything, on a daily basis I have some one try to charge 2 & 3 dollar items.

I am constantly amazed by the amount of adults who do not even have a nickel on them.

35 posted on 01/27/2013 10:06:22 AM PST by Kakaze (I want The Republic back !)
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To: Minutemen

Well, now....that’s because they need that 38 cents for the next Forty or that pack of Newports or towards today’s numbers, don’t they?


36 posted on 01/27/2013 10:09:56 AM PST by Gaffer
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To: driftless2

Bring the merchandise to the counter, withdraw your credit card, ask the cashier, “Oh, by the way, are you going to add a 4% credit card surcharge to the purchase price of this sweater? You are? Then I guess I don’t need this that much. Bye.”

Then dump the sweater on the counter and walk out.


37 posted on 01/27/2013 10:17:33 AM PST by goldi
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To: bgill

I’ve known a few stores that gave discounts for paying with cash. Not many, but a few.


38 posted on 01/27/2013 10:23:12 AM PST by Ellendra (http://www.ustrendy.com/ellendra-nauriel/portfolio/18423/concealed-couture/)
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To: bgill

Merchant service contracts prohibit the offering of discounts for using cash, that’s why stores don’t do it.

I think we will see mini mart type business starting to use surcharges on credit purchases under $10 now that they have the right to do so.


39 posted on 01/27/2013 10:30:29 AM PST by Valpal1
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To: Ellendra

there are states that actually have laws against this. those states will be unaffected. I predict more states will adopt this law.


40 posted on 01/27/2013 10:33:30 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Uncle Chip

The retailers already have it factored in, duh


41 posted on 01/27/2013 11:06:10 AM PST by yldstrk (My heroes have always been cowboys)
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To: Logical me
Those in California will shi! a brick.

Reread the article. California and several other states already forbid the practice.

42 posted on 01/27/2013 11:15:11 AM PST by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: driftless2

They are going to have to hire more employees to handle the cash transactions......penny smart...pound foolish.


43 posted on 01/27/2013 11:16:49 AM PST by dfwgator
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To: goldi
Bring the merchandise to the counter, withdraw your credit card, ask the cashier, “Oh, by the way, are you going to add a 4% credit card surcharge to the purchase price of this sweater?

And the odds are, the cashier won't have a frigging clue what your talking about and really does not give a flip if you buy the sweater or not.

44 posted on 01/27/2013 11:35:33 AM PST by Ditto
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To: VAFreedom
I’ve seen “cash discount” before. once or twice, in the past... say 30 years of shopping.

That used to be quite common at the gas pump. I haven't seen it in years as retailers just bumped up their prices to include the card processing fees. The only ones getting screwed are the hardcore, cash only customers and you don't see them much anymore either.

We have largely become a "cashless" society.

Regards,
GtG

45 posted on 01/27/2013 1:56:02 PM PST by Gandalf_The_Gray (I live in my own little world, I like it 'cuz they know me here.)
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To: bgill
I have never seen a "discount for cash" but I shop locally when I can, and always pay cash when patronizing local mom-and-pops. Just to do my neighbors a little favor.
46 posted on 01/27/2013 2:09:40 PM PST by hinckley buzzard
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To: oh8eleven

I was just over in NJ today - it’s 10 cents a gallon cash discount. Gas is cheaper in NJ than here in Pennsy, so I end up saving about 25 cents a gallon. Hey, in these times a few bucks here and there are important.


47 posted on 01/27/2013 5:43:21 PM PST by P.O.E. (Pray for America)
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To: Uncle Chip
Economics 101, as taught in any public High School:

ALL COSTS of doing business including raw materials, labor, utilities, transportation, inventory, marketing and taxes are included in the end cost of the product.

Anyone who doesn't already know that the 1.5% to 3% transaction charge that credit card companies were charging to retailers wasn't already in the final cost of the product is a fool.

Translation: That means if you paid CASH for any product from any retailer that accepted credit cards, your price included that 1.5% - 3% transaction charge already.

Rather than give you the 1.5% - 3% back as a "cash discount" the retailer pocketed an extra profit on your behalf.

So what everyone should do at this point is PAY CASH and DEMAND you get the credit card transaction fee BACK from the retailer at the point of sale since the retailer DOES NOT have to pay it when you pay cash (and they built that cost into their price.)

BTW: Anyone else remember CASH and CREDIT prices for gas? Guess what: Gas Station Retailers got smart (at least here in IL) and started charging EVERYONE the CREDIT price years ago. One price, whether you pay CASH or use a CREDIT card. Guess where that 1.5% - 3% transaction fee went when you paid cash? That's right: in the gas station owner's pocket.

It's high time for a consumer credit revolution.....

48 posted on 01/27/2013 5:55:31 PM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: VAFreedom

There is a store near where I live that has two prices on each item, one for cash and one for credit.


49 posted on 01/27/2013 5:57:37 PM PST by aomagrat (Gun owners who vote for democrats are too stupid to own guns.)
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To: usconservative

Here in Indiana, truck diesel fuel is typically priced both ways - I believe the add charge for credit is around 10 cents per gallon.


50 posted on 01/27/2013 6:01:24 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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