Moderator Emeritus
Posts: 14,711
Registered: ‎12-30-2011
Re: Merchants may be allowed to charge extra for credit cards
[ Edited ]

FrugalRican wrote:

+1 Stan.


As a former business owner, it was the swipe fee that could become a killer.

I've never heard of having to pay for someone's rewards on their card.

Whoa, you guys are auto-dimissing what could be right, and is at least partially so.  


There are different tiers when it comes to processing merchant transactions, and under at least the typical 3 tier model I know regular bland cards are tier 1 (fully qualified) and rewards cards are tier 2 (partially qualified).  I don't know where they fall on a 6 tier model which I've heard is being more and more used or what the specific differences are.


Anyway, to my limited knowledge the rates on tier 2 are higher than tier 1; I don't know if this is the full rewards price, but it's non-zero.



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