Prepare To Pay More For Using Your Plastic

[mrjarrell]

Visa and Mastercard got hammered in a lawsuit with retailers, (to the tune of $6 billion) and now retailers will be allowed to charge customers a fee to use their credit cards, (and one assumes MC and Visa debit cards, as well). Merchant agreements in the past forbade surcharges, so this will be a game changer. While it may well foster a bit of competition between the companies, there are going to be a lot of pissed off people out there who are going to object to the added fee.

The Consumerist » Visa, MasterCard Agree To Let Merchants Add Surcharges To Credit Card Purchases

 

[hoosierdoc]

there are going to be a lot of pissed off people out there who are going to object to the added fee.

And maybe they'll start using cash to buy things and our nation will heal itself from the credit disaster we're in as a population. It stinks they couldn't charge more for credit transactions since it costs more to take a credit card than cash. Sortof like extortion.

Pisses me off that the government says VISA/MC can't force a gas station to not charge a fee, but they can force me to buy something.

 

[Doug]

Currently, I put everything on the credit card and get 1% or 5% cash back on purchases; the 5% categories change every quarter.
I pay it off every month to avoid finance charges.
If I'm charged more than 1%, I'll just go back to cash and checks and keep the card for emergencies.
I've enjoyed the payoff while it has lasted.

 

[pute62]

Wish they would charge extra to use the EBT cards.

 

[Doug]

Wish they would charge extra to use the EBT cards.

Do merchants get charged for EBT card use?

If so, it would seem they could add surcharges to those purchases, too.

 

[Mr Evilwrench]

Told Mrs Evilwrench I always run the debit card as credit; the store pays the fee for credit, you pay the fee for debit. So, this means you pay the fee either way? Have to use more FRNs, I guess.

 

[85t5mcss]

This makes no sense to me. As a retailer should be watching their P&L anyway they will increase prices to offset the loss they have by paying CC fees.

Who cares that they don't charge a fee. They are still recouping their money. This is just another scam for companies to make more money.

Of course this is just my opinion. And I do work retail.

 

[Gabriel]

And maybe they'll start using cash to buy things and our nation will heal itself from the credit disaster we're in as a population.

It's hard to purchase items online without a credit card. I normally don't buy anything locally.

 

[Magolin]

There's a problem with always paying cash for things. I have always paid cash for everything with the exception of my car and that payment has always been on time. Now I want to buy a house and am getting all kinds of static from the banks despite the fact that I have a good credit score and nothing bad on my credit history. However, I've never had a credit card so I don't have what they're deeming 'enough' credit history. I make more than enough to pay the mortgage, but they don't care. So now I have a credit card I put everything on and pay off at the end of the month. It adds another obnoxious step, but apparently it's the game I have to play if I want a house.

 

[netsecurity]

Currently, I put everything on the credit card and get 1% or 5% cash back on purchases; the 5% categories change every quarter.
I pay it off every month to avoid finance charges.
If I'm charged more than 1%, I'll just go back to cash and checks and keep the card for emergencies.
I've enjoyed the payoff while it has lasted.

ditto

 

[kreepin2g]

cash burns a whole in my pocket thats why i never carry it, always use the debit card as credit. guess ill have to start using some self control with the cash

 

[melensdad]

ON THE RADIO TODAY they said this would NOT affect DEBIT card purchases.

While I don't recall the station (I was driving from St Louis to Nashville), they specifically stated the merchant can now charge the consumer the Dredit Card fee but they also said it would not apply to Debit Cards.

It should be noted that there are different fees with different cards. If you use a card that has 'cash back' or 'airline miles' or any other form of "reward card" then the fees to use those cards is actually higher than if you only use a straight MasterCard or Visa. So there may come a time when people stop using reward type cards because they will actually be paying for their own rewards!!!

 

[joshualee49]

Do merchants get charged for EBT card use?

If so, it would seem they could add surcharges to those purchases, too.

One of my friends lives in Carmel and is receiving EBT benefits at the moment. Stores have the ability to tax the purchases, even though they have to be classified as "food" items and generally tax exempt. It's up to the retailers apparently - because he reports that several convenience stores charge the tax. According to the employees, they do it to discourage EBT usage in the area since Carmel is a little "higher class" neighborhood. Just hearsay, but I have seen the receipts with tax included...

 

[Hoosierdood]

There's a problem with always paying cash for things. I have always paid cash for everything with the exception of my car and that payment has always been on time. Now I want to buy a house and am getting all kinds of static from the banks despite the fact that I have a good credit score and nothing bad on my credit history. However, I've never had a credit card so I don't have what they're deeming 'enough' credit history. I make more than enough to pay the mortgage, but they don't care. So now I have a credit card I put everything on and pay off at the end of the month. It adds another obnoxious step, but apparently it's the game I have to play if I want a house.

This is one of the major flaws of the "Debt Free" financial programs like Dave Ramsey.

 

[BEBOATS]

All of the merchants I know, which isn't many have usually 3% added to their product price. Buds Discount Guns from Lexington tells you when you buy with credit card that there will be 3% added to price. I think cash paying consumers get stuck with paying part of the retailers cost for credit card transactions. Myself I use cash unless it is mail order and if there is anymore cost added to credit card mail orders I will pay with U.S Postal money orders at least I will know that some bank or credit card sompany wont get the extra profits.

 

[Doug]

One of my friends lives in Carmel and is receiving EBT benefits at the moment. Stores have the ability to tax the purchases, even though they have to be classified as "food" items and generally tax exempt. It's up to the retailers apparently - because he reports that several convenience stores charge the tax. According to the employees, they do it to discourage EBT usage in the area since Carmel is a little "higher class" neighborhood. Just hearsay, but I have seen the receipts with tax included...

It is illegal to charge for EBT use for food benefits. The merchant can charge for using an EBT cash card, if and only if, said merchant charges the same amount for credit card purchases.
Sounds like a violation to me.

 

[Benny]

ON THE RADIO TODAY they said this would NOT affect DEBIT card purchases.

Sweet, this thread had me worried for a second.

I will not be affected.

 

[indykid]

I think it will last for a short while, and then the stores will realize that with everyone deciding to save money by writing a check, the time spent at the checkout will grow to the point people will get slightly angry at waiting for everyone in front of them to fill out the check, provide ID and anything else the store requires for a check transactions. Pretty soon to avoid riots, the stores will discretely roll the fees into the overall price of stuff, and things will return to normal plastic use.

 

[Mithrandir]

Just to clarify:

Debit card transactions with a PIN go through the ATM network.
Debit card transactions with a sig (not Sig Sauer: don't get excited) go through the CC network.

Typically, the merchant gets charged a fee for both, but the PIN transaction is WAAAY cheaper.

Also, EBT cards do not have a logo (and require a PIN) so they always go through the ATM network. Indiana's SNAP (food stamps) program is administered by JP Morgan (Chase).

(How do I know?: I'm a former bank employee, current personal financial consultant, and amateur lawyer. Oh, and I read a lot of fine print.)

 

[jetmechG550]

I use my debit card all the time everywhere. When they ask debit or credit I just respond whatever is easiest or cheapest for you (the merchant) since for me it's coming from the same pot. If it's run as credit I get points in the "loyalty" program but really I don't care and I would say that they all almost always say credit is cheaper.