Re: Merchants may be allowed to charge extra for credit cards[ Edited ]
07-14-2012 01:09 PM - edited 07-14-2012 01:10 PM
With no disrespect meant towards the poster, I don't believe you have any idea of the costs of running a small business. Swipe fees are way way over priced for what they give in return. Rather than argue the post, I'd suggest you look up the corporate SEC financials for MC/V/AE/Disc and look at how much those companies make from swipe fees. By "make" I mean profit over costs of all the so called benefits. AE and Discover are 100% self contained, MC/V add a layer on top of bank issuers (network costs).
Swipe fees are one of the greatest costs to merchants, more than rent, less than wages, but still a major cost factor for the small merchant. We heard all this "BS" with the debt card swift fee issue, once capped the world didn't end and prices have not increased.
Which is why you provide incentive for alternative payment, rather than surcharge. For example, Target provides 5% discount for those who use REDCard, to discourage people from using regular credit card.
Existing price already has swipe fee included, and now merchants want to double dip and charge surcharge on something that is already taken care off?
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