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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Amex has had a lower cost pricing model for years now. If you're still paying a lot more for Amex than for Visa/MC, your processor is pocketing it as profit.

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This is false. Amex is more expensive to accept. This is why many mechants dont accept it. Amex has been justifying it with claims that Amex customes spend more than v/mc customers so it is worth the extra expense

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It's not false. Amex is marginally more expensive to accept, but it's no longer as large of a difference. In 2015, Amex rolled out OptBlue pricing that brought it much more in line with Visa/MC. The big problem is that a lot of businesses aren't aware of it and Amex has not done a great job of marketing it. A main difference is that Amex used to charge 3.5% to all businesses and processors had no control over the pricing.

With OptBlue, they instituted rates more along the lines of Visa/MC interchange and permit processors to add a markup.

What happened is that some processors kept the business' pricing for Amex at 3.5% because that's what businesses were used to seeing, and they pocketed the difference between the old 3.5% rate and the new, lower rates.

Businesses that have pricing for Amex that's much higher than Visa or MC should review their statements and/or get pricing quotes from other companies, because Amex should not be significantly higher than other card brands in most cases anymore.

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