Credit Card Swipe Fees Begin Sunday In USA

An anonymous reader writes "A speedbump on the road to a cash-free economy will go into effect Sunday in the U.S., 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."

Comments

I'm curious to see how many retailers actually use

[drunkennewfiemidget]

I wouldn't think twice about having the clerk go, "there's a surcharge for credit", to which I'd respond, "OK, thanks anyway." and leave.

Re:I'm curious to see how many retailers actually

[drunkennewfiemidget]

Actually, when the store owner has to start paying his employees more money to put shit back on the shelf, he may start rethinking if that money on the credit card fees is more worthwhile.

I use a credit card for two reasons.
A) If someone swipes/steals that information, they're stealing VISA's money, not mine. If I use a debit card and they steal my info, they drain my bank account, my mortgage bounces. That's bad.
B) Rewards programs. I get thousands of dollars a year in rewards. I put /everything/ on my credit card. Only thing I don't is my mortgage and that's just because I can't. I pay it off every month. Companies that are going to make this less advantageous for me are going to get less of my business.

Re:I'm curious to see how many retailers actually

[cptgrudge]

Yes, yes, how very cynical of you. As an actual business owner that deals the vast majority of the time in cash and checks, and cringes when someone yanks out a credit card, I can tell you that we do NOT bake credit card processing fees into every purchase, because the margins required to compete are thin. This is an excellent change, because customers can actually see one of the costs.

And the next time it comes time to raise prices on that dozen eggs, perhaps it's 2% instead of 4%, because the CC processing fee won't be baked in, and it will be business as usual.

Bottom line, the fact that it's ILLEGAL for businesses to even inform customers of this, but to keep everyone IGNORANT of the true cost baked in is UTTERLY STUPID AND WRONG. Who the hell paid for the original legislation? The only ones it benefits are the credit card companies.