someone want to tell me why the fees visa-mastercard charge are so out of hand?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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bozell
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someone want to tell me why the fees visa-mastercard charge are so out of hand?

Postby bozell » Sun Nov 30, 2008 3:05 am

how much does a debit transaction cost? 7 cents for every $100. visa-mastercard charges over $2 for a $100 purchase. how can they get away with charging so many times more than debit cards? what should be done is what they do in australia and that is government regulation keeps the transaction fees under 50 cents for every $100.

there is going to be a backlash boston tea party style by stores if they keep this price gouging up/


jak
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Postby jak » Mon Dec 01, 2008 11:42 pm

I'll tell you. greed. It's all about the :money:

Eventually merchants will get ticked off to the point they will start boycotting cards. Some already have.

A decade from now rates will be less in this country. Everyone will get so fed up with the 3% we pay here and they will have to adjust them. I'm fine with paying 1% max but when it gets to 3% to 3.5% in fees that is a big pill to swallow.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Dec 02, 2008 1:35 pm

You forgot too that credit cards gives rewards. That's 1% to 1.5% of the transaction fee right there. In the fraud thread we were talking about how much the fraud costs and I think that worked out to be about 20 cents per $100. That means off the bat you're looking at anywhere from $1.50 to $1.75 per $100 in rewards and fraud costs. If we took away that it would bring transaction fees down to 1% - not the best, but it isn't too high either.
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fffresh
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Postby fffresh » Sun Dec 07, 2008 9:29 pm

One way to look at it is that Visa and Mastercard are literally bringing them customers whom they normally might not have, by financing the purchase for the customers. If I were a store owner and did not have an in-house credit facility I would gladly give 2% commission on a sale if that's what it took to allow the customer to pay for it.

bozell
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Postby bozell » Sat Jan 24, 2009 3:57 am

we will see a rebellion i guarantee you. why are credit card processing fees so high? there are no valid reasons and that was the point i was trying to make. in a recession too stores can hardly stay in business the way it is and cant afford to pay big processing fees on cards.

either the major cc issuers will need to come down on their fees or we are going to see a new startup come out someday with lower fees and take over the marketshare.

sputNick
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Postby sputNick » Mon Jan 26, 2009 3:33 pm

There's a new one out called REVOLUTION CARD started by Steve Case and other bigwigs that have much lower transaction fees but I haven't heard or seen much of it in the news since it came out. I think it flopped.

magyar1045
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Postby magyar1045 » Mon Jan 26, 2009 7:55 pm

I suppose that sooner or later merchants will tag prices with differences for cash payments vs credit/card payments - to save on these merchant fees. Some gas stations are already doing that.

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Cucumber
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Postby Cucumber » Tue Jan 27, 2009 4:00 pm

magyar1045 wrote:I suppose that sooner or later merchants will tag prices with differences for cash payments vs credit/card payments - to save on these merchant fees. Some gas stations are already doing that.


It's funny the credit card co's don't allow stores to charge more for card purchases but they DO allow them to offer a "cash discount" which is the same thing its just worded differently. :rolleyes:

We will be begin seeing the price tags I think show this like you said. It will show the "normal" price (which means for credit card payments) and then it will show the "cash discount" price for if you're paying with cash.
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magyar1045
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Postby magyar1045 » Tue Jan 27, 2009 4:17 pm

There are already several supermarket here in Sacramento that won't let folks pay with either credit cards or debit cards. It's cash or checks only.
I guess with constantly rising transaction fees that these banks impose on merchants for credit/debit card transactions the old days - cash or checks will return again.

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Postby matthewb » Tue Jan 27, 2009 8:01 pm

Well actually, I had a Sotheby's Mastercard that was cancelled not too long ago. Interestingly enough Sotheby's auctions stop accepting credit cards altogether on payments for auctions starting this week. I do a good amount of buying on behalf of clients furniture, decorations, etc at auction and this comes as a bit of a shocker to me and throws a wrench into the way I managed my finances. Now I will need to require full payments upfront from clients to buy auction items.



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