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Established Contributor
corymcd88
Posts: 894
Registered: ‎12-12-2011
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Re: Jan 13, surcharge fees can apply


bs6054 wrote:

FutureBillionaire wrote:

Rewards may improve so that consumers will keep using the cards so Visa and the others can keep their revenue stream where it is now. 


That would be interesting.   I guess for cash back rewards, the calculation is easy (2.5% surcharge, but I get 4% back), but for some rewards programs, much harder to evaluate


That would be good as I always use credit. I don't carry any debit card at all or much cash. People I work with can't understand like with out debit cards and I could not understand life with out credit cards! I can't be charged a surcharge as I live in FL as of now.

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starry1
Posts: 2,200
Registered: ‎11-29-2012
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Re: Jan 13, surcharge fees can apply

Colorado shot this down, thank goodness.

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martinkk
Posts: 68
Registered: ‎08-23-2010
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Re: Jan 13, surcharge fees can apply

I have a small business. We get what I am told is a pretty good rate for accepting credit cards. We process through our local bank who we have a good relationship with. Our fees average 1 1/2 to 2 % of the sale. We are charged the higher percentages when rewards cards are used. These fees amount to between $400 and $800 a month. Not a small sum but not enough to make me stop accepting them or risk alienating customers by charging them a fee, either. It's a cost of doing business.  There is a list of the charges on the monthly statement that categorizes the transactions into about thirty different tiers. I would have no way of knowing (by looking) what type card fee I will be charged for a particular card and the machine doesn't tell me, either. 

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Mike360
Posts: 433
Registered: ‎03-19-2010
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Re: Jan 13, surcharge fees can apply

I'll start shopping elsewhere then

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Cadillac-XTS
Posts: 1,837
Registered: ‎08-20-2012
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Re: Jan 13, surcharge fees can apply

+1

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kevinjjc
Posts: 1,331
Registered: ‎01-14-2009
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Re: Jan 13, surcharge fees can apply

The following states prohibit surcharges for credit card use:

 

  • California
  • Colorado
  • Connecticut
  • Florida
  • Kansas
  • Maine
  • Massachusetts
  • New York
  • Oklahoma
  • Texas
Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012
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Re: Jan 13, surcharge fees can apply

Gosh, everytime i visit visa's website my computer slows to crawl.  MC doesn't do this me.  Only Visa.  Another plus for MC.

 

 

Yeah, i think that every business, small, med, large, will want to take advantage of the new surcharge rules.  So my guess is that surcharges will be part of the normal business practices.

 

 

Kinda funny that this rule would encourage ppl to pay cash (or use cash forms like debit).  You normally see the businesses encouraging consumers to use credit.  Funny shift in attitude.

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Jan 13, surcharge fees can apply


ccnewcc wrote:

Gosh, everytime i visit visa's website my computer slows to crawl.  MC doesn't do this me.  Only Visa.  Another plus for MC.

 

 

Yeah, i think that every business, small, med, large, will want to take advantage of the new surcharge rules.  So my guess is that surcharges will be part of the normal business practices.

 

 

Kinda funny that this rule would encourage ppl to pay cash (or use cash forms like debit).  You normally see the businesses encouraging consumers to use credit.  Funny shift in attitude.


It's a little less clear cut.   Some big retailer organizations are against the settlement, seeing it as a way for the credit card companies to keep their large swipe fees, and to be able to put the blame on retailers if they start surcharging.   And then competitive pressures will at least slow surcharging.   Businesses are already eating the charge/have already added it to the price (depending who you listen to) so surcharging isn't "needed".  So if your competitors chose not to, it would be hard for you to surcharge.

 

Businesses don't like credit cards over much because of the swipe fee, and slow settlements.   Cash obviously has costs associated with it, but for some businesses, less than paying high fees to Visa/Amex/MC.

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daybreakgonesXe
Posts: 1,854
Registered: ‎11-17-2012
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Re: Jan 13, surcharge fees can apply

Its also possible that stores with their own credit cards may use it to promote their store cards, since they dont have to pay for transaction fees on them PLUS make money on interest! Working for JCP, this is why they make us heavily promote the card! The rewards are pretty sweet though too! XD
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