Re: Merchants may be allowed to charge extra for credit cards[ Edited ]
07-12-2012 07:30 AM - edited 07-12-2012 07:30 AM
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.
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)
Take the myFICO Fitness Challenge