Credit Card Surcharge Fees Starting Jan 27

For just about anything you want to get off your chest about credit cards.
31 posts
MemberSince99
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Postby MemberSince99 » Sun Jan 13, 2013 9:25 am

djrez4, they've been adding that into the pricing structure since day one, all this is, is a way to cash in and screw us even harder, so YEAH they ARE giving it to us in the pooper, according to your own comments. If it was already built in and they charge us a surcharge on top of that to cover what they are getting paid for, yep I consider that a screwing. But you said you agree, it's taking advantage of us, so, getting it in the pooper isn't so far off is it? I at least hope they have the common courtesy to get out the vaseline as they do it. Except I'm not going to be there.

In fact, it may be time to get rid of credit cards. We'll see. If this becomes a widespread con game perpetrated on us by these greedy vultures, I'll have to act accordingly. That's all we can say until we see what shakes out. But I'm not just going to go with it and take it, no matter what I have to do.


agp
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Postby agp » Sun Jan 13, 2013 11:03 am

Time to stock up on those Vanilla reloads and Amex Prepaid!

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

Michael
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Postby Michael » Sun Jan 13, 2013 1:55 pm

Actually, didn't I hear somewhere that there are no swipe fees on oil company credit cards, like Shell or Mobil?

Why can't gas station owners offer the cash price for cash or Mobil credit card (for example)?

They do this in Florida, but not in Illinois (where I am).

When I ask the owners they say that ALL credit costs the same, Visa , AMEX, or plain old oil company card.

This is not true. I just think that they don't want to pay to upgrade their software.

This is at least one small way to help with at least credit at the pump . . .

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djrez4
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Postby djrez4 » Sun Jan 13, 2013 2:02 pm

It's your choice as a consumer - carry a brick of $20 bills around wherever you go or pay a surcharge for having it on a piece of plastic.

Let's take a rather normal example - Say I go buy a new TV. I go to the store, pick out the model I like that has the features I want. Say it costs $1000. So, what do I do? Do I go to the bank beforehand and take cash out in anticipation of the purchase? What if I didn't get enough? Do I ask them to hold the TV and then go to the bank, now that I know the price? What if I get mugged? What if $100 falls out of my pocket? A credit card lets me avoid all of those problems. If I lose $100 cash, it's gone. If I drop my card, I call up and lose nothing. It also give me some piece of mind by extending the warranty and possibly providing price protection if the TV goes on sale later that month. The merchant accounts for all of his expenses in the sale price of the TV. I get my credit card rewards. Everyone's happy.

But, even if you go cash only, you can't just opt out of the system. If you choose to pay with cash, you're still being charged the merchant's cost of the item, plus whatever he chooses to add as a margin. If you're not willing to pay the merchant his margin so he can keep his doors open, what are you doing to do? Buy a cow, feed it, milk it, and churn your own butter? Grow enough cotton in your back yard that you can spin the fibers into thread, weave some fabric, and sew yourself a shirt? Mine bauxite, process the ore, and smelt it down into aluminum that you can roll into sheets of foil? Are you really going to go all Unabomber because a merchant adds a surcharge? Suck it up and participate in the economy. Or don't. We'll see you on the news, then.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

DoingHomework
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Postby DoingHomework » Sun Jan 13, 2013 5:27 pm

Bksuper wrote:against visa merchant contracts since they accept visa, since I've been at my school (August) and probably longer. They seem to prefer to charge a surcharge and face the consequences if caught. And this is in California. My official school book store, run by a big corporation (Barnes & Noble) ID'ed me to use my credit card to purchase textbooks and the clerk admitted it was because it was a Visa Signature and that cost them more. Merchant contracts seem to mean nothing to merchants, gov. restrictions or not.

@Doing Homework: I see your point with the widget example; credit cards and especially rewards credit cards are reducing consumer and producer surplus.


The prohibition on a surcharge for credit is no longer legal. They are not violating their contract on that one. Similarly, asking for ID has never been something that merchants were penalized for. It might have been technically against the rules. But merchants are never penalized for taking steps to prevent fraud.

DoingHomework
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Postby DoingHomework » Sun Jan 13, 2013 5:32 pm

djrez4 wrote: Any merchant who adds a surcharge now is taking advantage of you.

Round those up to the nearest dollar, enjoy a bit more revenue, and take my damn Amex.


Walk down the street, enjoy your lunch, and use your AMEX!

I'm not sure that I agree that charging surcharge is taking advantage of consumers. Maybe building the card fees into the price structure and making cash customers pay the same is screwing cash customers.

I don't like surcharges and don't charge them. But I also don't give a discount for cash and many customers get annoyed by that. You can't please people sometimes! You just have to develop a system that works for you and stick with it. Not everyone is going to be pleased. If too many walk away then you change.

DoingHomework
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Postby DoingHomework » Sun Jan 13, 2013 5:39 pm

djrez4 wrote: Suck it up and participate in the economy.


I love it. Have you thought of making signs that say this and selling them to merchants? I'd buy one, lol!

Bksuper
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Postby Bksuper » Sun Jan 13, 2013 11:05 pm

I thought the OP said the new rules making it now legal excepted California? I'm located in California, the restaurants still charge surcharges for using credit for purchases <$5, have as long as I remember, and the ID'ing incident happened when it was still against the visa contract and was by their own admission because I used a signature card not because of risk of fraud. I'm not saying the rules are or aren't justified, fair to merchants, fair to consumers, etc, Im saying that whether or not they are there, the merchants seem to just do what they want for their business and risk paying a fine if caught.
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silver6054
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Postby silver6054 » Sun Jan 13, 2013 11:14 pm

Bksuper wrote:I thought the OP said the new rules making it now legal excepted California? I'm located in California, the restaurants still charge surcharges for using credit for purchases <$5, have as long as I remember, and the ID'ing incident happened when it was still against the visa contract and was by their own admission because I used a signature card not because of risk of fraud. I'm not saying the rules are or aren't justified, fair to merchants, fair to consumers, etc, Im saying that whether or not they are there, the merchants seem to just do what they want for their business and risk paying a fine if caught.


There have been several different changes over the past few years. CA is one of the states that they can't surcharge for using a credit card, but minimum purchase limits have been legal since Jul 2010:

Minimizing Confusion Over Minimums « Visa

to comply with Dodd-Frank act.

So this might be a slightly different situation, it wasn't a surcharge for a credit card purchase, it was a "convenience charge" to allow you to use a card below the agreed minimum purchase limit. (or some such spin!)

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Postby Randiesel75 » Mon Jan 14, 2013 8:47 am

djrez4 wrote:It's your choice as a consumer - carry a brick of $20 bills around wherever you go or pay a surcharge for having it on a piece of plastic.

Let's take a rather normal example - Say I go buy a new TV. I go to the store, pick out the model I like that has the features I want. Say it costs $1000. So, what do I do? Do I go to the bank beforehand and take cash out in anticipation of the purchase? What if I didn't get enough? Do I ask them to hold the TV and then go to the bank, now that I know the price? What if I get mugged? What if $100 falls out of my pocket? A credit card lets me avoid all of those problems. If I lose $100 cash, it's gone. If I drop my card, I call up and lose nothing. It also give me some piece of mind by extending the warranty and possibly providing price protection if the TV goes on sale later that month. The merchant accounts for all of his expenses in the sale price of the TV. I get my credit card rewards. Everyone's happy.

But, even if you go cash only, you can't just opt out of the system. If you choose to pay with cash, you're still being charged the merchant's cost of the item, plus whatever he chooses to add as a margin. If you're not willing to pay the merchant his margin so he can keep his doors open, what are you doing to do? Buy a cow, feed it, milk it, and churn your own butter? Grow enough cotton in your back yard that you can spin the fibers into thread, weave some fabric, and sew yourself a shirt? Mine bauxite, process the ore, and smelt it down into aluminum that you can roll into sheets of foil? Are you really going to go all Unabomber because a merchant adds a surcharge? Suck it up and participate in the economy. Or don't. We'll see you on the news, then.


Well said !



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