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(Washington Post)   The banking industry has said that merchants are unlikely to pass on this "windfall" to consumers and instead will increase their profit margins. Unlike the banks whom always place the customer first   (washingtonpost.com) divider line 21
    More: Amusing, Federal Reserve, bankers, profit margins, merchants, Guggenheim Partners, debit cards, bank charge, consumers  
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1117 clicks; posted to Business » on 01 Aug 2013 at 8:45 AM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



21 Comments   (+0 »)
   
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2013-08-01 08:49:05 AM  
I guess the question is, will the banks raise fees to cover lost revenues.  At that point you are getting charged twice.

/Is it really ever a question whether banks will raise fees?
 
2013-08-01 08:55:58 AM  
The banks make a good point, i am not confident merchants will lower prices at all and instead just absorb this ruling as profit. However given the choice i would rather the merchants take that money than visa/mastercard.

/In before invisible hand of the free market should decide winners and losers
//also in before if merchants dont wanna pay fees, just go to cash only
 
2013-08-01 08:56:50 AM  
Obvious tag sick today?

/And how do 12 absolutely terrifying two sentence horror stories affect this?
 
2013-08-01 09:01:30 AM  
A friend once told me, get a good accountant and a good lawyer, and make sure they hate each other.  That way they'll each catch the other one trying to screw you over.
 
2013-08-01 09:50:38 AM  
My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?
 
2013-08-01 09:56:42 AM  

Arkanaut: A friend once told me, get a good accountant and a good lawyer, and make sure they hate each other.  That way they'll each catch the other one trying to screw you over.


You probably want to avoid getting involved in any of your friend's "brilliant" ideas.  Your friend doesn't sound very bright.
 
2013-08-01 09:59:17 AM  
In the end, the banks always, always get the money.  Always.
 
2013-08-01 10:28:16 AM  
Or maybe like the gas stations in Virginia where the state gas tax was lowered in favor of a higher sales tax.  Any yet, somehow, someway, magically, them gas prices have only gone up since July 1.
 
2013-08-01 12:20:34 PM  

tricycleracer: My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?


Yeah, some of those rewards cards bill a higher transaction fee to the merchant, and the difference can be pretty staggering once you add up all those transactions.
 
2013-08-01 12:44:35 PM  

Famous Thamas: tricycleracer: My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?

Yeah, some of those rewards cards bill a higher transaction fee to the merchant, and the difference can be pretty staggering once you add up all those transactions.


Well, that sucks for this guy:

upload.wikimedia.org
 
2013-08-01 01:00:12 PM  

Famous Thamas: tricycleracer: My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?

Yeah, some of those rewards cards bill a higher transaction fee to the merchant, and the difference can be pretty staggering once you add up all those transactions.


Richard Fairbank, CEO of Capital One, was just picked by Bloomberg as the most overpaid CEO of 2012.  His wealth will not create itself. Alec Baldwin's reward cards need to generate money.
 
2013-08-01 02:15:24 PM  
Making profit is putting the customer first. If they didn't make profit, they would go out of business and the customer would have no product to buy.
 
2013-08-01 02:18:32 PM  
So the banks' argument basically boils down to "Well, merchants are just going to screw over their customers anyways, so give the money to us. Screwing people over is OUR job!" It's a compelling argument.
 
2013-08-01 03:03:47 PM  

tricycleracer: My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?


I've heard that Amex Platinum and Delta Skymiles charge 5% fees. Someone here on Fark posted once that he got a Square reader just for those instances (flat 3%).
 
2013-08-01 04:03:21 PM  

Sandusky Knows Best: The banks make a good point, i am not confident merchants will lower prices at all and instead just absorb this ruling as profit. However given the choice i would rather the merchants take that money than visa/mastercard.

/In before invisible hand of the free market should decide winners and losers
//also in before if merchants dont wanna pay fees, just go to cash only


I agree with the idea of the "Free market deciding" but I think we need to provide a very forced bottom that includes livable wages +Healthcare & Vacation (since our country is to farking stupid to do universal) for employees as a requirement.  I will keep repeating this mantra:  Any business that hires employees that immediately meet the criteria to obtain government assistance at any level should immediately be taxed the amount the employee is eligible for regardless of them using the services or not.

This is the ONLY way to force companies to properly pay their employees.  And if they can't compete then the free market should gobble them up.
 
2013-08-01 04:36:04 PM  
Watch the movie, "The Bank". It will teach you all about... banks.
 
2013-08-01 05:21:36 PM  

Gig103: tricycleracer: My barber now refuses to take any credit card that has "Rewards" or "Miles" on it, claiming that they charge him an extra 7% per transaction on those.  It that really true?

I've heard that Amex Platinum and Delta Skymiles charge 5% fees. Someone here on Fark posted once that he got a Square reader just for those instances (flat 3%).


that's crazy but pretty smart on the CC company's part. Take the card the customer is most likely to want to use, jack up the fees to the merchant, and make the merchant deny the customer if they don't want to pay the higher fee. That's pretty damn smart actually.
 
2013-08-01 05:22:49 PM  

Sandusky Knows Best: The banks make a good point, i am not confident merchants will lower prices at all and instead just absorb this ruling as profit. However given the choice i would rather the merchants take that money than visa/mastercard.

/In before invisible hand of the free market should decide winners and losers
//also in before if merchants dont wanna pay fees, just go to cash only


i've noticed, since the rule was changed recently, that a lot of retailers were charging credit card fees to cover the cost.  i imagine the retailers will just remove those fees.  for those who added the fee, the original price of the goods remained unchanged.
 
2013-08-01 06:54:50 PM  
Whether they reduce the extortion fees or not, they should be added to the total of each purchase and clearly labeled as such. That way the consumer not only bears the cost of using plastic, but knows full well exactly how much using a particular card is costing them. My cash purchases shouldn't include a hidden fee to subsidize the card users. The banks, of course, are dead-set against this because they don't want people to know how much using plastic actually costs them. There is absolutely no reason why the swipe fee couldn't be itemized and added to receipt, other than the fact that banks own congress and the regulatory agencies, so it'll never happen. Instead, retailers have to raise prices for everyone so that a few douchebags can use reward cards with exorbitant swipe fees, which is a bunch of crap. You want "free" rewards? Pay your own damn swipe fees.
 
2013-08-01 07:44:02 PM  

Kazrath: Sandusky Knows Best: The banks make a good point, i am not confident merchants will lower prices at all and instead just absorb this ruling as profit. However given the choice i would rather the merchants take that money than visa/mastercard.

/In before invisible hand of the free market should decide winners and losers
//also in before if merchants dont wanna pay fees, just go to cash only

I agree with the idea of the "Free market deciding" but I think we need to provide a very forced bottom that includes livable wages +Healthcare & Vacation (since our country is to farking stupid to do universal) for employees as a requirement.  I will keep repeating this mantra:  Any business that hires employees that immediately meet the criteria to obtain government assistance at any level should immediately be taxed the amount the employee is eligible for regardless of them using the services or not.

This is the ONLY way to force companies to properly pay their employees.  And if they can't compete then the free market should gobble them up.


Possibly the most intelligent post on Fark I've ever read.

/Including mine.
 
2013-08-01 07:55:07 PM  

EvilEgg: I guess the question is, will the banks raise fees to cover lost revenues.  At that point you are getting charged twice.

/Is it really ever a question whether banks will raise fees?


I think a much more interesting question is whether or not the banks will think up a new fee to stiff the customer, or just take one of the old ones that they would have used anyway if it weren't for that pesky public relations and use this as a plastic shield.
 
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