Credit Cards Center Credit cards from our partners
Reply
Valued Contributor
Posts: 1,111
Registered: ‎12-12-2011
0

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.

Walmart / SYNCB - 12,000 | JCP MasterCard / SYNCB - 10,000 | Dillard's / Wells Fargo - 5,000 | Amazon / SYNCB - 1,000 | Capital One - 4,200 | Bank Of America 123 Cash Back - 12,000 | AMEX Hilton HHonours - 2,000 | PenFed Platinum Rewards Visa Signature - 30,000 | PenFed Travel Rewards AMEX - 10,000 | PenFed PLOC - 5,000 | PenFed Thrifty Credit - 500 | Discover IT - 8,800 | Wyndham / Barclays - 2,500 | Citi Simplicity - 5,800 | Amazon.com Visa Signature - 5,000 | Chase Freedom Visa Signature - $6,200.
Community Leader
Valued Contributor
Posts: 2,440
Registered: ‎11-29-2012
0

Re: Jan 13, surcharge fees can apply

Colorado shot this down, thank goodness.

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 1/22/15 TU 645; EQ 605; EX 633 New goal 675
Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $12k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $750 / Target $400 / PPSC $800 / Conoco $700 (last app 09/29/14)
New Contributor
Posts: 70
Registered: ‎08-23-2010
0

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. 

Frequent Contributor
Posts: 437
Registered: ‎03-19-2010
0

Re: Jan 13, surcharge fees can apply

I'll start shopping elsewhere then

Established Contributor
Posts: 1,837
Registered: ‎08-20-2012
0

Re: Jan 13, surcharge fees can apply

+1

Valued Contributor
Posts: 1,419
Registered: ‎01-14-2009
0

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
Posts: 560
Registered: ‎09-29-2012
0

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.

Highlighted
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

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.

Valued Contributor
Posts: 1,919
Registered: ‎11-17-2012
0

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
Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $14.5k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 755 EQ 717 TU 746 VantageScore 3.0: EX 738 EQ 743 TU 745 Credit Sesame (EX) 745 Credit.com (EX) 794 CapOne (TU) 787
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.