ohiomike Posted January 26, 2013 Report Share Posted January 26, 2013 "It could soon cost you more to shop with a credit card at some stores. As of this Sunday, Jan. 27, merchants who accept credit cards issued by Visa and MasterCard will be allowed to add a service charge to the purchase price....." http://www.nbcnews.com/business/attention-shoppers-another-credit-card-fee-here-1C8086499?ocid=msnhp&pos=2as if most retailers don't make enough off us as it is..... Quote Link to comment Share on other sites More sharing options...
Brownsfan1 Posted January 26, 2013 Report Share Posted January 26, 2013 Use cash. My bank is charging a convience fee at there atms even if you are an account holder. It's time to find another bank. Quote Link to comment Share on other sites More sharing options...
smashweights Posted January 26, 2013 Report Share Posted January 26, 2013 Article says few, if any retailers will actually implement this fee anyway due to state prohibitions and the like. Don't get too ruffled up. Quote Link to comment Share on other sites More sharing options...
TRMN8TR Posted January 26, 2013 Report Share Posted January 26, 2013 Use cash. My bank is charging a convience fee at there atms even if you are an account holder. It's time to find another bank.Definitely time to find a new bank. Yours charges you to use their own atm's? PNC refunds me up to $10/mo for fees charged by other atm's. Time to shop around, there's better options out there. Quote Link to comment Share on other sites More sharing options...
baptizo Posted January 26, 2013 Report Share Posted January 26, 2013 Use cash. My bank is charging a convience fee at there atms even if you are an account holder. It's time to find another bank.Find a good credit union to join. Quote Link to comment Share on other sites More sharing options...
ohiomike Posted January 26, 2013 Author Report Share Posted January 26, 2013 Every chance any retailer gets to charge more $, they usually end up doing so.It kills me when banks want you to pay for electronic transactions, or billing companies want to also charge a 'service charge' for an 'instant payment transaction'. No human labor involved, no wait time for their money, yet they have this opportunity to charge a customer for the 'convenience'.....so they do.What the heck is it going to be like in 50 or 100 yrs from now? Quote Link to comment Share on other sites More sharing options...
Bitani Posted January 26, 2013 Report Share Posted January 26, 2013 (edited) Might as well charge a "convenience fee" for having to count the cash.Dang.As soon as I see a charge like that I'm sticking to only cashCan't we all just agree it's time for Google Wallet RFID payments? Edited January 26, 2013 by Bitani Quote Link to comment Share on other sites More sharing options...
Bitani Posted January 26, 2013 Report Share Posted January 26, 2013 EDIT: Stupid forum repost Quote Link to comment Share on other sites More sharing options...
DAC Posted January 26, 2013 Report Share Posted January 26, 2013 Merchants are just passing along the cost of being ass raped by the banks. If a bank extends you credit, that's between you and the bank. Why does the merchant need to build that into their cost?What happens today is the merchants have to pay 1-4%, depending on the type of card, for what is essentially an electronic transaction that costs pennies to execute. On top of that, the banks use cash back and other incentives to cause consumers to use the card even more.The poor people who can't get a card or don't use one also get screwed because the merchants build the card costs into their retail prices. It's like splitting a dinner check evenly and paying for someone else's beer and dessert. Quote Link to comment Share on other sites More sharing options...
ohiomike Posted January 26, 2013 Author Report Share Posted January 26, 2013 (edited) Merchants are just passing along the cost of being ass raped by the banks. If a bank extends you credit, that's between you and the bank. Why does the merchant need to build that into their cost?What happens today is the merchants have to pay 1-4%, depending on the type of card, for what is essentially an electronic transaction that costs pennies to execute. On top of that, the banks use cash back and other incentives to cause consumers to use the card even more.The poor people who can't get a card or don't use one also get screwed because the merchants build the card costs into their retail prices. It's like splitting a dinner check evenly and paying for someone else's beer and dessert.These costs are already buried in their retail pricing. Bet you if a merchant chooses to charge this service fee they are not going to re adjust their pricing. Not gonna happen. Plus most retailers who I sold credit card processing to were paying under $.03 per transaction. Edited January 26, 2013 by ohiomike Quote Link to comment Share on other sites More sharing options...
DAC Posted January 26, 2013 Report Share Posted January 26, 2013 These costs are already buried in their retail pricing. Bet you if a merchant chooses to charge this service fee they are not going to re adjust their pricing. Not gonna happen.Bet you they will. (Can you say ALDI?) Quote Link to comment Share on other sites More sharing options...
ohiomike Posted January 26, 2013 Author Report Share Posted January 26, 2013 Bet you they will. (Can you say ALDI?)So you're saying Aldi is going to charge a service charge to use a credit card to make purchases, and they are going to take that $.03 off the price? Who is making out on that setup? Quote Link to comment Share on other sites More sharing options...
Gump Posted January 26, 2013 Report Share Posted January 26, 2013 I wonder if the credit card processors get a % of the merchants fee induced to cover the processors fee to begin with....lol Quote Link to comment Share on other sites More sharing options...
DAC Posted January 26, 2013 Report Share Posted January 26, 2013 (edited) So you're saying Aldi is going to charge a service charge to use a credit card to make purchases, and they are going to take that $.03 off the price? Who is making out on that setup?No. ALDI only accepts debit cards as of now. The interchange is much lower for that at grocery outlets. Something less than .5%. But what if you could buy a TV and pay $20 or $40 less for it? Would you do it? I sure as hell would. I believe the thrust of ruling allows discrimination against card. If the final verdict is to allow discounts for cash, that would be good - don't you think? Edited January 26, 2013 by DAC Quote Link to comment Share on other sites More sharing options...
ohiomike Posted January 26, 2013 Author Report Share Posted January 26, 2013 Well possibly, not sure many would do it tho. But think of this-retailers adding 3% to their markup to cover cc purchases, doesn't that really screw the people paying with cash? Kind of the opposite as the Aldi deal. And the interchange rate is based on a retailers volume, and if they can get into a group thing, like medical facilities, their rates can decrease. But what you are failing to realize is that they are only paying pennies on a cc transaction. And on that transaction they are most likely making 5% or more profit on the merchandise. When I was running a big truckstop store I had to run merchandise at a 50% markup. Then you pay withing 10 days and get an additional discount from the supplier. Or take 30 days to pay, use their money for the 30 and then pay the bill with the profits.Anyway you look at it, imho, this service fee thing is horsecrap. But if a retailer gives you a $40 dollar discount for paying cash yet it would only cost them $.03 as a cc transaction you are making out big time. Quote Link to comment Share on other sites More sharing options...
NinjaNick Posted January 26, 2013 Report Share Posted January 26, 2013 There is a gas station near me that has no attendant because it is credit card only. They are making good money on that idea I am sure. Like OhioMike said...no labor cost. Quote Link to comment Share on other sites More sharing options...
turnone Posted January 26, 2013 Report Share Posted January 26, 2013 Most small retailers pay much closer to 2-4% than $.03 per transaction. I'd be interested to know who pays $.03 per.I take CC's and hate paying the 3% but I believe it is smart to make it easy for customers to pay you. I don't get many CC transactions overall.Biggie Quote Link to comment Share on other sites More sharing options...
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