Credit Card Swipe Fees Begin In USA

[Phurfur 70]

"A speedbump on the road to a cash-free economy will go into effect Sunday in the USA, as retailers in 40 states will have the option of passing along a surcharge to customers who pay with credit cards. The so-called swipe fees arose from the settlement of a seven-year lawsuit filed by retailers against Visa, Mastercard, and big banks, who collect an electronic processing fee averaging 1.5 to 3 percent on transactions involving credit cards. The banks naturally have opposed the consumer surcharges, preferring that the extra costs to be passed along in the form of higher prices. Consumers in ten states (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas) won't be affected, since laws in those states forbid the practice (it seems that gasoline station owners here in Massachusetts got a different memo, though). Also, the surcharges won't be collected for debit or prepaid cards."

 

http://news.slashdot.org/story/13/01/26/1715251/credit-card-swipe-fees-begin-sunday-in-usa

[SUXBNME 1,346]

Finally...Something my state did right.

[Kanil 519]

Finally...Something my state did right.

Thank you CO!

[shotsup 832]

Thank you CO!

 

And NY!!!!

[swirvenirvin 25]

Great, so I dont write checks for anything but would start doing this if this was the case.

[MTSkiBum 1,598]

Retailers are already passing on the costs of credit cards to consumers. This will make that cost visible to consumers. It will also ensure that the people who pay with cash and check are not subsidizing consumers who choose to use credit cards.

 

 

 

I would think that a republican like sux would support this measure. Why should one subset of consumers subsidize another group.

[frank 2,154]

Straight cash, homie!

[tubby_mcgee 691]

What's next? A fee to help pay for the businesses employees? A fee to help cover shipping charges that the business is hit with they get their products? A fee to help pay for energy to heat the building? A fee to pay for gas to drive the cash deposit to the bank?

 

These are all costs of doing business, reflected in the cost that consumers pay. The same has always been for credit card transactions.

[DankNuggs 305]

 

These are all costs of doing business, reflected in the cost that consumers pay. The same has always been for credit card transactions.

I agree with this. Its a variable overhead cost of doing business.

 

So going to a brick and morter store you pay 6-7% in sales tax and another 2-3% in CC fees, vs i presume buying online at amazon has none of these fees... Getting upwards of a 10% price difference. yikes.

[hoytdwow 202]

Greed is good

[Patriotsfatboy1 1,432]

I agree with this. Its a variable overhead cost of doing business.

 

So going to a brick and morter store you pay 6-7% in sales tax and another 2-3% in CC fees, vs i presume buying online at amazon has none of these fees... Getting upwards of a 10% price difference. yikes.

In many states, Amazon has to collect sales tax. Add our state to that list come November.

[edjr 5,597]

In many states, Amazon has to collect sales tax. Add our state to that list come November.

 

next shopping season.

 

 

The leading online retailer and the Massachusetts Office for Administration and Finance have reached an accord for Amazon to begin collecting the 6.25 state sales tax on any purchases by Massachusetts residents starting next November -- and forwarding those funds to the state Department of Revenue, of course.

 

Massachusetts will be the ninth state in the country to ink a state sales tax collection deal with Amazon -- an agreement that makes each purchase on the site that much more expensive, and makes Amazon that much less superior on price.

[DankNuggs 305]

In many states, Amazon has to collect sales tax. Add our state to that list come November.

[RLLD 3,455]

The CEO's need many more millions, they simply do not have enough

[Patriotsfatboy1 1,432]

I believe this excludes payments made via AMEX. I wonder if this will reduce the number of places that take that form of payment.

[DankNuggs 305]

I believe this excludes payments made via AMEX. I wonder if this will reduce the number of places that take that form of payment.

Amex charges the highest fees already

[IGotWorms 3,351]

What's next? A fee to help pay for the businesses employees? A fee to help cover shipping charges that the business is hit with they get their products? A fee to help pay for energy to heat the building? A fee to pay for gas to drive the cash deposit to the bank?

 

These are all costs of doing business, reflected in the cost that consumers pay. The same has always been for credit card transactions.

 

[Patriotsfatboy1 1,432]

Amex charges the highest fees already

 

Not to the consumer. They charge the merchants. These fees are being charged to the consumer.

[Vikings4ever 496]

Not to the consumer. They charge the merchants. These fees are being charged to the consumer.

The consumer pays either way. As it was, the fees were hidden by the stores in the form of higher prices.

 

It's just that the fee is now obvious to the customer.

[Patriotsfatboy1 1,432]

The consumer pays either way. As it was, the fees were hidden by the stores in the form of higher prices.

 

It's just that the fee is now obvious to the customer.

 

You are missing the point. AMEX charges the merchant the fee, but the merchant can't pass it on to the consumer. The merchant charges the SAME price as those paying cash. If they use MC or VISA, then the consumer pays the same as cash PLUS a fee.

[redtodd 7]

Retailers are already passing on the costs of credit cards to consumers. This will make that cost visible to consumers. It will also ensure that the people who pay with cash and check are not subsidizing consumers who choose to use credit cards.

 

 

 

I would think that a republican like sux would support this measure. Why should one subset of consumers subsidize another group.

 

It's not like the cost for cash and check people will go down. As you said, it is already accounted for and people who pay by cash or check have happily pay the prices. Why reduce the prices for them?

 

It will just allow the businesses to charge credit card people more.......but they run the risk of losing business to other companies who may not have that fee.

[Patriotsfatboy1 1,432]

This may be much ado about nothing.

 

http://m.nbcnews.com/business/attention-shoppers-another-credit-card-fee-here-1C8086499

 

Visa and MasterCard have rules that require retailers to handle credit cards the same way in all of their stores across the country. That means a chain with stores in any of the 10 states where a surcharge is banned would not be able to have a surcharge at any of its stores.

 

The National Retail Federation points out that under terms of the settlement, a merchant who adds a surcharge to purchases on a Visa or MasterCard would have to do the same with American Express cards. But AMEX prohibits surcharge fees. So a merchant who accepts American Express as well as Visa/MasterCard would not be able to surcharge any of those cards.“The bottom line is that very few retailers would be able to surcharge under the settlement, and that the vast majority don’t want to surcharge even if they could,” the NRF’s Shearman said.

 

Ed Mierzwinski, Director of Consumer Programs at U.S. PIRG agrees.“In the brick-and-mortar world, no one who does any sort of volume business is going to want to surcharge because it will drive their customer crazy and slow down transactions,” Mierzwinski said.

[SUXBNME 1,346]

Not to the consumer. They charge the merchants. These fees are being charged to the consumer.

Hence why most small businesses (like the one I work for) won't accept AMEX.

[SUXBNME 1,346]

You are missing the point. AMEX charges the merchant the fee, but the merchant can't pass it on to the consumer. The merchant charges the SAME price as those paying cash. If they use MC or VISA, then the consumer pays the same as cash PLUS a fee.

Oh, the merchant can, and many times does pass it on to the consumer. Just not as a fee that reads AMEX in any way, shape or form.

If there is enough AMEX going through their business, I guarantee you that they make it up by charging more in different ways than they would if they didn't accept Amex.

[Phurfur 70]

It's not like the cost for cash and check people will go down. As you said, it is already accounted for and people who pay by cash or check have happily pay the prices. Why reduce the prices for them?

 

It will just allow the businesses to charge credit card people more.......but they run the risk of losing business to other companies who may not have that fee.

 

If everyone paid by check the stores would drop any fees in a minute. What they are not talking about is that they do get some return for those fees.

[NotesFromUnderground 0]

I believe this excludes payments made via AMEX. I wonder if this will reduce the number of places that take that form of payment.

 

Amex's fees are higher than any other company's are. That's why there are still places that don't accept Amex. I think they charge 3% because they aren't really a "credit" card company as you have to pay off the bill every month. They have to go after the retailers to make their money.

 

 

The unfortunate thing about all of this is the retailers are not going to go in and slash all their prices by 1-3%, so this just means the consumer will pay 1-3% more for everything if they use their credit card.

 

Also, isn't Phurfur one of those obsessed conservative nutwads? I remember him from another board and he was always preaching republican values. This move is completely favorable to businesses and all about capitalism so not sure what his issue with it is.

[IGotWorms 3,351]

Also, isn't Phurfur one of those obsessed conservative nutwads? I remember him from another board and he was always preaching republican values. This move is completely favorable to businesses and all about capitalism so not sure what his issue with it is.

 

You must have him confused with someone else. Our Phurfur is an "independent"

[NotesFromUnderground 0]

You are missing the point. AMEX charges the merchant the fee, but the merchant can't pass it on to the consumer. The merchant charges the SAME price as those paying cash. If they use MC or VISA, then the consumer pays the same as cash PLUS a fee.

 

And they have marked their prices up accordingly based on the fact that they have to pay fees to the credit card companies. It's not more "visible" now. It's just that the consumer has to pay more now if they use a credit card. If your local department store now goes and marks everything down 1-3% because of this new law, let me know. Because I seriously doubt they are going to do that as there is absolutely no reason to.

[Frozenbeernuts 1,652]

So does this mean they will lower their prices to make up for adding the surcharge? Because its not like we werent paying for it already.

[Patriotsfatboy1 1,432]

Wow, you late nighters cant read at al.

 

... and Sux - I use Amex all the time. I find maybe one place every 2 years that doesn't take it. Garages and mom&pops make sense to not take it, but I rarely go to those places and I would give them cash anyway.

[Phurfur 70]

You must have him confused with someone else. Our Phurfur is an "independent"

 

You are about as stupid as they come, I am a Libertarian and have said this is posts many times.

 

Living is easy with eyes closed, misunderstanding all you see.

- John Lennon

 

I hold that all individuals have the right to exercise sole dominion over their own lives, and have the right to live in whatever manner they choose, so long as they do not forcibly interfere with the equal right of others to live in whatever manner they choose.

 

What do you believe in Worms?

[Phurfur 70]

 

Also, isn't Phurfur one of those obsessed conservative nutwads? I remember him from another board and he was always preaching republican values. This move is completely favorable to businesses and all about capitalism so not sure what his issue with it is.

 

The uninformed are fun to watch.

 

The July agreement, believed to be the largest antitrust settlement in U.S. history, requires the defendants, MasterCard, Visa and more than a dozen banks to:

•Pay about $6 billion to be distributed to the millions of merchants represented in the lawsuit.

•Roll back the credit card swipe fees for U.S. merchants for eight months. That would cost the credit card companies another $1.2 billion.

•Give American retailers the ability to recover that interchange fee by charging customers who pay with Visa and MasterCard a “checkout fee” – where allowed by law – equal to the interchange fee. Under the current Visa and MasterCard rules, retailers are not allowed to add such a surcharge.

http://www.nbcnews.com/business/credit-card-swipe-fee-settlement-far-done-deal-6244321

 

BTW: I don't have an issue, where did I say I did? As a consumer I stll have the option not to use my CC if I don't want to.

[FeelingMN 273]

I hold that all individuals have the right to exercise sole dominion over their own lives, and have the right to live in whatever manner they choose, so long as they do not forcibly interfere with the equal right of others to live in whatever manner they choose.

 

What do you believe in Worms?

 

People are free to live their lives the way they want, except when they choose things you disagree with. Then it's MK-Ultra to the Cloward-Piven power.

 

 

[IGotWorms 3,351]

People are free to live their lives the way they want, except when they choose things you disagree with. Then it's MK-Ultra to the Cloward-Piven power.

 

 

 

Precisely.

 

I've already told you what I believe Phurfur. I believe in liberal economic policy and libertarian social policy (within reason, i.e., I am not in favor of legalizing all drugs, for example).

[edjr 5,597]

I believe this excludes payments made via AMEX. I wonder if this will reduce the number of places that take that form of payment.

 

I only use AMEX for my Amexzon purchases.

[Phurfur 70]

Precisely.

 

I've already told you what I believe Phurfur. I believe in liberal economic policy and libertarian social policy (within reason, i.e., I am not in favor of legalizing all drugs, for example).

 

That statement is a generalized bunch of crap that means nothing.

[IGotWorms 3,351]

That statement is a generalized bunch of crap that means nothing.

 

Kinda like yours, but slightly less full of sh!t

[Phurfur 70]

People are free to live their lives the way they want, except when they choose things you disagree with. Then it's MK-Ultra to the Cloward-Piven power.

 

 

 

What I disagree with is government control of the live of its citizens. MK-Ultra and NUDGE are just two ways to accomplish this of course you are for government control so you don't see this.

 

Cloward Piven is playing out right before our eyes, just like it was written 45 years ago. Are you saying this is not happening?

[Phurfur 70]

Kinda like yours, but slightly less full of sh!t

 

MY Statement:

 

I hold that all individuals have the right to exercise sole dominion over their own lives, and have the right to live in whatever manner they choose, so long as they do not forcibly interfere with the equal right of others to live in whatever manner they choose.

 

 

Your Statement:

 

I believe in liberal economic policy and libertarian social policy (within reason, i.e., I am not in favor of legalizing all drugs, for example).

 

People can judge for themselves.

[IGotWorms 3,351]

MY Statement:

 

 

 

 

Your Statement:

 

 

 

People can judge for themselves.

 

We've already been judged.

 

You're a miserable, senile old coot whose own grandkids won't even visit him.

 

I'm a dooshbag pinko fake lawyer.