Would you pay more?

**Roughdraft** · July 12th, 2012, 02:29 PM

I haven't seen much talk about this on FG, and I'm a little surprised since the members of FG are usually first to know these types of things as we share our insider tips on credit cards and credit card companies. There have been a couple articles published describing how there is a lawsuit against Mastercard and Visa. Apparently the two companies charge higher transaction fees for swiping their cards than do other card companies. These are the pioneers of card swiping. They started it all and have now grown to be the two largest issues of cards and card reading systems worldwide.

The lawsuit is aimed at the consumer however. The retailer's arguments are that they feel its unfair that they should have to take a loss for the buyers action and suggest that a transaction fee be carried over to users of Visa and Mastercard. So essentially, an item will cost more for someone using their debit or credit card than someone paying cash or using a different brand of card.
The Wall Street Journal on the other hand has stated that retail companies are doing quite well, despite their allegations of losing profits. On average, profits are up higher than they have been in the past couple of years. Whether or not it is right to have companies absorb their fees would appear to the average consumer as just 'part of doing business' but we could be facing a change soon. In some parts of Australia there already is a transaction fee applied to certain credit cards, but experts believe that it is much more than needed to cover this transaction, and that in fact they are using money form these fees to increase profits. These are all things we should be watching out for, especially those of us who depend so highly on credit cards. The question then is, would you continue to use your cards even with transaction fees?

**JELOPEZ88** · July 17th, 2012, 07:14 AM

Roughdraft, I totally agree. Last month I tried to use my debit Visa to pay for my vehicle tabs and was shocked to discover the city refused to accept either Visa debit or credit cards.

Evidently, Visa charges the city extra fees for using the Visa brand. That is the only occasion in which my Visa cards have been declined for payment. I can see the business's point of view. It seems unfair for them to be charged extra to take credit cards for payment; it's a ridiculous way of doing business. However those costs should be not passed down to us, the consumers. To answer your question: No, I would not pay more. I would either use a different brand of card, or pay cash. As far as the lawsuit is concerned, they are barking up the wrong tree. The retailers should take that up with Visa and Master card.

**Wanderer** · July 17th, 2012, 06:03 PM

Originally Posted by JELOPEZ88

Roughdraft, I totally agree. Last month I tried to use my debit Visa to pay for my vehicle tabs and was shocked to discover the city refused to accept either Visa debit or credit cards.

Evidently, Visa charges the city extra fees for using the Visa brand. That is the only occasion in which my Visa cards have been declined for payment. I can see the business's point of view. It seems unfair for them to be charged extra to take credit cards for payment; it's a ridiculous way of doing business. However those costs should be not passed down to us, the consumers. To answer your question: No, I would not pay more. I would either use a different brand of card, or pay cash. As far as the lawsuit is concerned, they are barking up the wrong tree. The retailers should take that up with Visa and Master card.

NOT surprised! Many governmental units at the city and county level have not embraced the modern age. As the old saying goes "government moves slowly". I have noticed an increase in governments taking credit/debit cards but it is not universal. In my recent past life I have been a city manager and county administrator that could not get the electeds to realize the world has changed. In counties you often run into a rural mindset and small cities don't often have the staff capabilities to take on the task of figuring it out.

**Roughdraft** · January 30th, 2013, 10:31 AM

As of 01/27 most states can now legally charge a finance charge for swiping your card. Some states have not adopted the law yet, including California, Colorado, Conneticut, Florida, Kansas, Maine, Massachusetts, New York and Texas.

Its seems as though the retail companies that had put the lawsuit in with Visa/Mastercard are unhappy with the results, stating that it is unfair that these fees will carry over to the consumer. Target and Walmart have both announced that they do not plan on charging a "service" fee for credit cards.

Something funny that I didn't mention earlier, is that you see this at small shops and gas stations, where it says you must charge a certain amount, (i.e., $5, or $10) to use credit. While that is now legal in most states, technically it is illigal in the aforementioned states where the law hasn't passed. While they are private companies and can refuse anyone's business, if all you have is a card, they should take it, reguarless of how small the amount. Just FYI. Also, the fees are not suppsed to apply to debit cards...so there should never be a sign saying with a minimum for debit cards, and apparently the retail stores cannot charge your debit card these "service" fees.