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Senior Contributor
jsucool76
Posts: 3,751
Registered: ‎12-11-2011
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Re: Credit card users surcharge of up to 4 percent

I stopped carrying debit when I got my first cards as well. However, i live in a college town, and ind bars I go to where people open tabs (and the bartender holds your card till you cash out for the night) I've noticed like 90% of cards there are debit cards.
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Frequent Contributor
L-TWT
Posts: 372
Registered: ‎12-18-2011
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Re: Credit card users surcharge of up to 4 percent

With such charge, I'm glad to be living in NY. Both NY & CT out-lawed such retail/dept. store surchages!:smileyhappy:

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blondy250
Posts: 465
Registered: ‎01-03-2013
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Re: Credit card users surcharge of up to 4 percent


ryanbush wrote:

thom02099 wrote:

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...


I was just guessing 100%, I'm a typical younger middle class person.  I go out to eat for lunch every day with tons of different people in my age group as well as doing activities on the weekend... out of the 20-30 people I would consider my group of friends maybe only one or two other people use credit cards religiously, most use debit.

 

now I know a lot of big spenders and business owners use credit cards, as well as members of this board (most of us are obsessed with our rewards) 

 

Also in my experience with most middle class americans the majority use debit (these fees are only for CC not Debit)

 

So again this was just from my experience, I challenge you in your normal day to day activites such as going to starbucks or walmart or your local eatery.  just check out what card everyone is paying with, I'm betting 75% will be debit and not credit....  I'm going to start taking a count myself over the next couple weeks 


 I wonder what people think when they call themselves middleclass, perceptions vary I guess. I made 140K in 2012 (over 100 for the last 10 years) have very little debt a good Fico score (sig) am single with no children and barely consider myself middle class. The fact is very few people use cash as all studies prove.  This BTW is an interesting article on who is middle class, versus pereception.     http://www.washingtonpost.com/blogs/wonkblog/wp/2012/08/23/how-perceptions-of-the-middle-class-keep-...


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Established Contributor
shakalaka
Posts: 567
Registered: ‎09-10-2012
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Re: Credit card users surcharge of up to 4 percent


jsucool76 wrote:
I stopped carrying debit when I got my first cards as well. However, i live in a college town, and ind bars I go to where people open tabs (and the bartender holds your card till you cash out for the night) I've noticed like 90% of cards there are debit cards.

Yes, but college people are mostly at the beginning of their credit journey. So I guess this is quite normal. Later you should normally have more credit available. I am from Germany and working in the USA since 1 year and from what I see most of the people use cc. Checks are used very seldom and only in grocery stores and same for debit, for I do see very seldom somebody punch in the PIN after swiping the card.

 

I use cc all the time, I think it is very convinient and the safety is also much better, compared to debit card. And I just love the rewards ...


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Credit card users surcharge of up to 4 percent

More sourced figures, rather than individual perceptions (although I guess the latter are more fun to discuss).  Fed report for 2009:

http://www.networthjourney.com/understanding-debit-card-transactions/

 

 

When not paying with cash, Americans used, in descending order:

  • Debit cards: 37.9 billion.
  • Checks: 24.4 billion.
  • Credit cards: 21.6 billion.
  • ACH: 19.1 billion.

 

I'm surprised to see checks still so high in 2009.  They just announced the next study, to be complete late 2013.  http://www.frbservices.org/files/communications/pdf/press/011713_payments_study.pdf

 

Valued Contributor
ryanbush
Posts: 1,292
Registered: ‎08-19-2012
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Re: Credit card users surcharge of up to 4 percent


blondy250 wrote:

ryanbush wrote:

thom02099 wrote:

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...


I was just guessing 100%, I'm a typical younger middle class person.  I go out to eat for lunch every day with tons of different people in my age group as well as doing activities on the weekend... out of the 20-30 people I would consider my group of friends maybe only one or two other people use credit cards religiously, most use debit.

 

now I know a lot of big spenders and business owners use credit cards, as well as members of this board (most of us are obsessed with our rewards) 

 

Also in my experience with most middle class americans the majority use debit (these fees are only for CC not Debit)

 

So again this was just from my experience, I challenge you in your normal day to day activites such as going to starbucks or walmart or your local eatery.  just check out what card everyone is paying with, I'm betting 75% will be debit and not credit....  I'm going to start taking a count myself over the next couple weeks 


 I wonder what people think when they call themselves middleclass, perceptions vary I guess. I made 140K in 2012 (over 100 for the last 10 years) have very little debt a good Fico score (sig) am single with no children and barely consider myself middle class. The fact is very few people use cash as all studies prove.  This BTW is an interesting article on who is middle class, versus pereception.     http://www.washingtonpost.com/blogs/wonkblog/wp/2012/08/23/how-perceptions-of-the-middle-class-keep-...


the average median income in my part of the country is 35k...  I figure anything from 35k to 100k as middle class, 100k to 350k as upper middle class

I make around a little over 50k and I can pretty go and do as I want without really having to worry about my bank account too much I think a lot of it depends on where you live.  If I make 140k a year I would feel RICH in this part of the country 

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Imua
Posts: 292
Registered: ‎01-17-2009
0

Re: Credit card users surcharge of up to 4 percent

well, i got to test out both a visa and a MC this morning, one at a large local restaurant chain in hawaii (zippy's) and one at Long's CVS drugstore (originally was west coast chain Long's drugstore, but bought by CVS a few years ago).  neither one had a surcharge as of today   

 

Long's CVS without a surcharge made me especially happy:  used my chase freedom MC for the 5% drugstore category, and as an employee of CVS Caremark, I got 20%employee discount- with no surcharge to take away either "perk"  :smileyhappy:


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Valued Contributor
ryanbush
Posts: 1,292
Registered: ‎08-19-2012
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Re: Credit card users surcharge of up to 4 percent

[ Edited ]

from the way I understand it any merchant that accepts AMEX can not charge a surcharge on Visa/MC... anyone else see anything differently

 

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Frequent Contributor
Cleanmachine
Posts: 399
Registered: ‎04-30-2008
0

Re: Credit card users surcharge of up to 4 percent

[ Edited ]

I understand that the Federal Judge's Order was to allow the Merchant to charge the fee. The Merchant has the option.

 

What would be interesting, those States that current will not allow the Merchant to charge a fee, would the Federal Judge's

decision over rule the State law???

 

Would this also apply to those credit card issuers who do not allow the fee????

 

Interesting to see what happens.

 

 

 

 

Frequent Contributor
Cleanmachine
Posts: 399
Registered: ‎04-30-2008
0

Re: Credit card users surcharge of up to 4 percent

Additional information regarding the use of DEBIT CARDS.....

 

FEDERAL RESERVE SYSTEM

12 CFR Part 235

[Regulation II; Docket No. R-1404]
RIN 7100-AD 63


Debit Card Interchange Fees and Routing

AGENCY: Board of Governors of the Federal Reserve System

ACTION: Final rule.

 

SUMMARY: The Board has amended the provisions in Regulation II (Debit
Card Interchange Fees and Routing) that govern adjustments to debit
card interchange transaction fees to make an allowance for fraud-
prevention costs incurred by issuers. The amendments permit an issuer
to receive or charge an amount of no more than 1 cent per transaction
(the same amount currently permitted) in addition to its interchange
transaction fee if the issuer develops and implements policies and
procedures that are reasonably designed to take effective steps to
reduce the occurrence of, and costs to all parties from, fraudulent
electronic debit transactions. The amendments set forth fraud-
prevention aspects that an issuer's policies and procedures must
address and require an issuer to review its policies and procedures at
least annually, and update them as necessary in light of their
effectiveness, cost-effectiveness, and changes in the types of fraud,
methods used to commit fraud, and available fraud-prevention methods.
An issuer must notify its payment card networks annually that it
complies with the Board's fraud-prevention standards. Finally, the
amendments provide that an issuer that is substantially noncompliant
with the Board's fraud-prevention standards is ineligible to receive or
charge a fraud-prevention adjustment and set forth a timeframe within
which an issuer must stop receiving or charging a fraud-prevention
adjustment.

DATES: This rule is effective October 1, 2012.


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