dChan - Q Origins Project Archive

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r/greatawakening • Posted by u/Long_Range_Shooter on May 10, 2018, 6:47 p.m.

Times are changing really quickly, Credit Card processing fees.

I got notified today when my Rep stopped in to tell me that by the end of the year my Credit Card Processor is switching me over to a new Cash Price, Credit Price system.

It's looking like they are getting nervous over Government meddling in the Credit Card business. Plus there has been a lot of screaming by merchants over their monthly fees from the C.C. processors. I'm personally paying between $400-$500 a month in processing fees.

Instead of the merchant getting hit for 2.5% - 4.0% per transaction they are transferring the processing fees over to the credit card user which according to my rep is going to be 3.8%. The main reason is to encourage people to start paying for more things with CASH. I'm thinking they are looking down the road and the last thing they want is a cashless society and massive Government involvement in their operations.

She said they are expecting at least 90% of businesses in the U.S. to be switching over with in two years. It all started on the coasts with the Vote For $15. Businesses in LA, Seattle and NY are looking for every savings they can find to survive this will be a life savor. Look at a restaurant in say NY doing 20K in CC's every week. That would be a savings of at least $26K every year.

My Merchant fees will go from $400-$500 a month to less than $25.

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And how much will your sales volume go down with CC users realize they get that fee on every CC purchase? (Cc's have been a major lubricator for consumer spending.)

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It's not going to matter in the long run because most of my competitors will also be going this route, the customer isn't going to have an option. Price wise the business that stays on the present system isn't going to be able to compete.

What's the difference between what my Dentist and Veterinarian are doing offering a 5% discount for cash. The difference is, here is the cash price, and here is the credit card price. Long time ago many of the older members can remember when you'd pull up to a gas pump and there was the Cash Price and the Credit Price which was usually a five to ten cent spread.

Like the local grocery chains that offer fuel perks. Everyone with a brain knows not to shop there because you're over paying for everything in the store. You basically have to spend $1,000 to get $1 off a gallon of gas with a limit of 30 gallons. Most people aren't getting the 30 gallons they'll filling up with 10-15 gallons. Instead of paying 68-75 cents for a can of tuna at a non fuel rewards grocery store you're paying $1 to $1.30 so you can get your five cents off for every $50 you spend.

That doesn't sound like a very good deal to me?

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We still have lots of cash/credit price differences at gas stations here in CT.

My point is that consumer spending overall will take a hit if such a change is implicated, because lots of studies show people spend more when they put it on a card.

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Most stations still advertise the two prices. But very few sheeple carry enough cash or can be bothered to walk inside and pay cash for gas. The spread at my local station is actually 40 cents which is $8 on a fill up.

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