Credit Card Fee Policies
Author: stevejk
Posted: Fri Jan 13, 2006 10:27 am
Post subject: Merchants Tackle Credit Card Fee Policies
In an article on CardForum.com, it said something that almost makes me feel guilty for using rewards credit cards.
Quote:
Another major gripe for merchants is the rise of rewards cards. Visa and MasterCard have added richer rewards for cards targeting the valued high-earning household demographic. The tradeoff is that merchants pay a pricier interchange fee to accept the cards.
The Visa Rewards 2 credit interchange category in April carried a cost of 1.9% of a transaction plus 10 cents compared with the CPS Retail card rate of 1.54% plus 10 cents. The MasterCard World Merit III-Base interchange rate in April was 1.73% of the sale plus 10 cents compared with 1.63% plus 10 cents for the standard Merit III-base rate.
Merchants say these fees are added into the cost of all their products and are paid for by all their consumers, whether they use plastic, cash or checks.
"Merchants pay, and those who don't use cards are all paying for these reward programs," says Mitch Goldstone, owner of 30 Minute Photos Etc. in Irvine, Calif., and lead plaintiff in the merchant suits to be heard by Gleeson.
I know I should pay cash to reduce the cost to the merchant and keep prices lower, but if everyone else is going to pay with CC and push prices higher, I might as well join them and at least get a little back in CC rewards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: JaneiR36
Posted: Fri Jan 13, 2006 2:59 pm
Post subject:
I guess mouse is right. Using cash isn't free!
Author: mouse
Posted: Fri Jan 13, 2006 5:34 pm
Post subject: Re: Merchants Tackle Credit Card Fee Policies
stevejk wrote:
In an article on CardForum.com, it said something that almost makes me feel guilty for using rewards credit cards.
Quote:
Another major gripe for merchants is the rise of rewards cards. Visa and MasterCard have added richer rewards for cards targeting the valued high-earning household demographic. The tradeoff is that merchants pay a pricier interchange fee to accept the cards.
The Visa Rewards 2 credit interchange category in April carried a cost of 1.9% of a transaction plus 10 cents compared with the CPS Retail card rate of 1.54% plus 10 cents. The MasterCard World Merit III-Base interchange rate in April was 1.73% of the sale plus 10 cents compared with 1.63% plus 10 cents for the standard Merit III-base rate.
Merchants say these fees are added into the cost of all their products and are paid for by all their consumers, whether they use plastic, cash or checks.
"Merchants pay, and those who don't use cards are all paying for these reward programs," says Mitch Goldstone, owner of 30 Minute Photos Etc. in Irvine, Calif., and lead plaintiff in the merchant suits to be heard by Gleeson.
I know I should pay cash to reduce the cost to the merchant and keep prices lower, but if everyone else is going to pay with CC and push prices higher, I might as well join them and at least get a little back in CC rewards.
100% CREDIT---100% OF THE TIME
So they don't get the sale if they demand CASH
I don't do much cash
Vending machines is about it
My purchase IS because they take credit cards
I'm gonna' pay how I want and it is NOT CASH
MY NON REWARDS CARDS ARE USED AT A LAST RESORT FOR A PURCHASE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Jan 13, 2006 10:27 am
Post subject: Merchants Tackle Credit Card Fee Policies
In an article on CardForum.com, it said something that almost makes me feel guilty for using rewards credit cards.
Quote:
Another major gripe for merchants is the rise of rewards cards. Visa and MasterCard have added richer rewards for cards targeting the valued high-earning household demographic. The tradeoff is that merchants pay a pricier interchange fee to accept the cards.
The Visa Rewards 2 credit interchange category in April carried a cost of 1.9% of a transaction plus 10 cents compared with the CPS Retail card rate of 1.54% plus 10 cents. The MasterCard World Merit III-Base interchange rate in April was 1.73% of the sale plus 10 cents compared with 1.63% plus 10 cents for the standard Merit III-base rate.
Merchants say these fees are added into the cost of all their products and are paid for by all their consumers, whether they use plastic, cash or checks.
"Merchants pay, and those who don't use cards are all paying for these reward programs," says Mitch Goldstone, owner of 30 Minute Photos Etc. in Irvine, Calif., and lead plaintiff in the merchant suits to be heard by Gleeson.
I know I should pay cash to reduce the cost to the merchant and keep prices lower, but if everyone else is going to pay with CC and push prices higher, I might as well join them and at least get a little back in CC rewards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: JaneiR36
Posted: Fri Jan 13, 2006 2:59 pm
Post subject:
I guess mouse is right. Using cash isn't free!
Author: mouse
Posted: Fri Jan 13, 2006 5:34 pm
Post subject: Re: Merchants Tackle Credit Card Fee Policies
stevejk wrote:
In an article on CardForum.com, it said something that almost makes me feel guilty for using rewards credit cards.
Quote:
Another major gripe for merchants is the rise of rewards cards. Visa and MasterCard have added richer rewards for cards targeting the valued high-earning household demographic. The tradeoff is that merchants pay a pricier interchange fee to accept the cards.
The Visa Rewards 2 credit interchange category in April carried a cost of 1.9% of a transaction plus 10 cents compared with the CPS Retail card rate of 1.54% plus 10 cents. The MasterCard World Merit III-Base interchange rate in April was 1.73% of the sale plus 10 cents compared with 1.63% plus 10 cents for the standard Merit III-base rate.
Merchants say these fees are added into the cost of all their products and are paid for by all their consumers, whether they use plastic, cash or checks.
"Merchants pay, and those who don't use cards are all paying for these reward programs," says Mitch Goldstone, owner of 30 Minute Photos Etc. in Irvine, Calif., and lead plaintiff in the merchant suits to be heard by Gleeson.
I know I should pay cash to reduce the cost to the merchant and keep prices lower, but if everyone else is going to pay with CC and push prices higher, I might as well join them and at least get a little back in CC rewards.
100% CREDIT---100% OF THE TIME
So they don't get the sale if they demand CASH
I don't do much cash
Vending machines is about it
My purchase IS because they take credit cards
I'm gonna' pay how I want and it is NOT CASH
MY NON REWARDS CARDS ARE USED AT A LAST RESORT FOR A PURCHASE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 6:47 PM
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