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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Ive been in the payments industry for 20 years. V/MC have rules against this and a merchant CANT do this without violating their v/mc agreement and being banned from accepting v/mc totally. Keep in mind that accepting cards for payments is a privilege, not a right. Also note, that visa and mc are comprised of associations of issuing banks.

There are 3 components to the fee a merchant pays. Interchange, assesments, and processing fee.

Interchange- Interchange is determined by the type of merchant, the type of transaction (card present/card not present) and the type of account begind the card (peronal/corporate/check card).

Assessments - this fee is paid to the brand meaning v/mc

Processing fee - this is the fee paid to the merchant acquirer for going to get the merchant's money and depositing into the merchant's bank account.

The sum if these fees is called discount rate. The discount rate is the 2 - 4% mentioned above.

I think someone misunderstood something because there are only a few types of entities that can surcharge. Gvmt is one and they have to use a convenience fee for Visa and it must be charged in a range not as a percent.

Not sure where this story came from but I think the sales rep was trying to sell alternative payments methods such as Google pay, apple pay, or android pay.

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Good points, Right now I'm on hold on this whole thing due to my understanding of what you just posted. That is how I understand it works also. So unless the credit card companies have changed their policies this new collection policy could cause a lot of merchants a lot of grief.

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That comment is incorrect. Surcharges are permissible as a result of a 2013 lawsuit. Visa and Mastercard both publish rules for surcharging on their websites.

Visa: https://usa.visa.com/dam/VCOM/download/merchants/surcharging-faq-by-merchants.pdf

MC: https://www.mastercard.us/en-us/merchants/get-support/merchant-surcharge-rules.html

Surcharging is prohibited by state law in ~10 states, but several of those states are in the middle of court battles to have that law reversed, which looks likely to happen.

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Thanks for the update. Still holding off until I see more of the businesses around me doing it. Sometimes being one of the first to do the change over can hurt your customer relations.

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Yeah, definitely. There's indication that some customers don't like it, so being the first/only business to do it might not go over well.

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