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 ...
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
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.
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”.
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.
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...
Gas stations in Jersey are giving a cash discount, about 5 cents per gallon. Lines are sometimes out into the highway.
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.
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.
Stores already charge more to absorb credit fees. This is just a move to start profiting on top of sales.
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.
Government credit cards will deemed exempt fron the surcharge.
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.
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.
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?
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.
I’ve known a few stores that gave discounts for paying with cash. Not many, but a few.
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.
there are states that actually have laws against this. those states will be unaffected. I predict more states will adopt this law.
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