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

bozell · 01:05 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 · 09:42 PM

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

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.

Mogul of Pineapples · 11:35 AM

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.

fffresh · 07:29 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 · 01:57 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 · 01:33 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 · 05:55 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.

Cucumber · 02:00 PM

Quote:

Originally Posted by magyar1045

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.

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.

magyar1045 · 02:17 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.

matthewb · 06:01 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.

01:05 AM	#1
bozell Platinum Member Join Date: Jun 2008 Location: c-town Posts: 58	someone want to tell me why the fees visa-mastercard charge are so out of hand? 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/

11:35 AM	#3
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 634	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. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

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09:42 PM	#2
jak Green Member Join Date: Oct 2008 Location: PA Posts: 9	I'll tell you. greed. It's all about the 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.

07:29 PM	#4
fffresh Centurion Member Join Date: Apr 2008 Location: the edge of the world Posts: 417	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.

01:57 AM	#5
bozell Platinum Member Join Date: Jun 2008 Location: c-town Posts: 58	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.

01:33 PM	#6
sputNick Gold Member Join Date: Oct 2008 Location: Midwest Posts: 41	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.

05:55 PM	#7
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 162	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.

02:17 PM	#9
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 162	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.

06:01 PM	#10
matthewb Green Member Join Date: Dec 2008 Location: US Posts: 2	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.