Charge cards

[Cavman]

Got a heads up this past week. Starting today, 1/27/13, vendors can start adding up to 4% on your purchases when you use your charge/credit cards. They have to post visually if they are going to do this. So, be aware. :yikes:

The banks have been charging to process the cards so now this is being possibly passed on the the consumer.

 

[MarkLawson]

The retailers have adjusted their prices for years to cover this charge. When you pay cash, they were making even more profit. Now they can legally add anoth 4% to their bottom line out of your bottom line.

 

[ijon1]

Yea, our people in DC really fixed that credit card thing.

 

[Bob Denman]

:gaah: Ain't this fun?? :cus:!! Another way to pick our pockets! :gaah:

 

[harrypottar]

I don't see this lasting very long, we've all been trained not to use cash and to carry cards so there is a record. I personally would walk out of a retailer that tried to charge me credit card tax. The only issue would be specialized retailer where they have items you can not buy anywhere else.

Retail is supposed to be hurting at the moment I can not see this helping there cause. I don't have an issue if the cost of goods increases as a part of doing business, but paying more for using a different method of payment is not cricket.

They may get around this by increasing prices and offering up to 4% cash discount. I never normally carry more than $100 with me day to day and use my debit card if needed. Unless of course I'm traveling to a spyder event then I bring some cash reserves.

harry

 

[Yfactor]

This charge is not extended to debit cards unless you use it for credit and not debit. Also the merchant has to notify you if they are adding this charge. I learned of this a few weeks ago from my eldest son who works for Capital One. Also these charges are merchant optional.

 

[Farmbanker]

This whole issue was contentious between VISA, Mastercard and retailers. Retailers can indeed charge up to 4 percent more at their option. It is another way to increase profit margins by passing on the cost to the consumer. It is a mistake IMHO because studies clearly show that encouraging the use of plastic increases both the size and frequency of purchases. I will absolutely spend less at and frequent less the retailers who decide to do this. It will allow me to save more money for upgrades to the Spyder though....:yes:

 

[Arr MiHardies]

They've been doing it at gas stations for years... The price you see on the sign is a cash price.

 

[billybovine]

Stop beating up the retailer

Years ago a retailer was charged a small transaction fee and 1% for accepting a credit card. It was good service at a reasonable cost. Then the charges increased over time to 2% and the transaction fee was dropped. The cost was still acceptable and if they did not accept a credit card they would lose business. Then over time the contracts for accepting credit cards changed so that the retailer was not allowed to charge a fee for accepting the credit card or a discount for cash or their rights to accept a credit card would be suspended. By then accepting a credit card as payment for many retailers was a must and having that ability taken away would put them out of business. Then credit card companies started offering premium cards with rewards for customers. They are very popular with consumers because it appears that you get all this swag for using your card and it does not cost anything. Retailer are forced under their contract to accept these cards with some of the fees being proposed for some new cards as high as 6%. Retailers did not know what the credit card fee was for accepting the card was until they got their statement. Retailers lost control of the credit card costs and did not have the ability to do anything about it. Governments around the world are passing laws to give power back to the retailer to control the cost of accepting credit cards.

 

[ARtraveler]

Another possibly contentious issue. Merchants have been charged a fee by banks to process credit cards for years. Most merchants have not passed this on to the consumer--but--I am sure they have taken this factor into account when pricing their products.

You have also probably seen signs posted at auto service and car and cycle dealers--that they will not accept credit cards on purchases over a certain amount. This has been in lieu of charging you a additional fee on your purchase.

RE: gas stations with different prices for cash or credit card variations. Currently, I just drive by them.

 

[Blue Star]

Debit verses Credit

There is a fast food place close to me that charges 75 cents if I use my debit card, but no charge if I use the credit part that takes the money from the same account. I could understand the fee if they gave cash back, but they do not offer that. I will not buy from anyplace that charges me to use my credit/ATM card. If they charge, and is the only place to get it, then I will write a check, or use cash. Those 75 cents or one dollars add up real fast. Although I admit that I will pay if, and only if, I need it right now, and the gas to get cash is more than the 75 cent fees, but this is rare that this happens to me.

 

[wyliec]

:gaah: Ain't this fun?? :cus:!! Another way to pick our pockets! :gaah:

Bob D.,

I was watching the news a few minutes ago; you and I don't have to worry about the fee. There are 10 states in which an additional fee are illegal and NYS was one of them.

 

[harrypottar]

Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

I wonder if you buy in another state but live/ship to one of the above they can charge or not.

:thumbup: Harry,

 

[otter28169]

Looks like I am gonna have to go back to using cash for everything. Probably better to protect against identity theft anyway.:thumbup:

 

[Yeochief]

Charge Cards (Dodd-Frank)

A'm from the gubment, I's here to hep ya!

 

[DocRags]

Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

I wonder if you buy in another state but live/ship to one of the above they can charge or not.

:thumbup: Harry,

I would think the surcharge couldn't be added on if something is shipping to a state that doesn't allow it; sales tax is calculated based on the state something is being shipped to, not where it is purchased. We're in Florida, so the cash/credit surcharge is not a problem for us. It will be interesting to see if more states join the ten where it's illegal to add the surcharge...knowing how Congress works, they probably outlawed any change in the # of states when they came up with the credit card "fix."