tvirk888 wrote:And if you go to a place of business and they have a sign up saying they don't accept any card over a certain amount; that is illegal, but that merchant is being charged a very high rate (over 3% usually for qualified cards, so it is even higher for reward cards)
randeman wrote:Actually, I am going to have to correct you there. According to the Dobbs-Frank Act of 2010, merchants CAN set credit card transaction fees up to $10.00.
It was my understanding that prior to Dodd-Frank, it was against the contract stipulations between the merchants and Visa/Mastercard for merchants to set credit card minimums. I once complained to Visa and Mastercard prior to Dodd-Frank about a merchant's minimum, and they basically blew me off. The issue is obviously moot now.
otter wrote:Most of the newer POS systems are programmed so that they "try" to run the transaction as debit if they can. There are a few reasons for that: (1) It is cheaper to run a transaction as debit than it is to run it as credit (2) chargebacks with credit transactions are a lot easier than with debit- when I was an accountant at a truck stop- I NEVER had a debit transaction which was successfully disputed, but credit transaction disputes were typically successful almost half the time.
So with a lot of places with new register systems, if you have a debit card, the register will prompt you for a pin (and usually give the option to run it as credit as well). If it is a credit card, it will skip that step.
How does the register know whether it is a debit or credit card? Perhaps some might know from the magnetic strip, but I am almost 100% sure that most of the newer ones know simply by the card number. I think debit and credit cards are allocated a certain sequence of numbers.
SClay wrote:Plus, a debit card can always be run as credit instead.
flash007 wrote:I'm confused because when I stopped at the gas station and I paid inside, they asked if it was a debit card or a credit card. When I went to the grocery store they asked me the same thing. This got me to thinking they couldn't tell what kind of card it was.
flash007 wrote:Now you want to hear scary, I went to Wal^art with a friend and he wanted to show me something so he took the card, went to the self-checkout lane, swiped the card, signed the electronic pad "Santa Claus" and walked out with a $150 purchase. Next we stopped at a restaurant, I asked they guy at the counter if they took debit cards and he said "no" "credit cards only", I handed him the Mastercard, he ran it, I signed the slip and we walked out.
flash007 wrote:What gets me is the prepaid cards don't fit the definition of a credit card or a debit card and since they are reload-able, they certainly aren't a gift card.
tvirk888 wrote:Didn't know this. Thanks! I'll tell my merchant this information.