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Merchants (in a class of seven million) reach a "historic" $7.25B settlement with Visa (V) and...

Merchants (in a class of seven million) reach a "historic" $7.25B settlement with Visa (V) and MasterCard (MA) over transaction fees, in an agreement that also involves card issuers including JPM, BAC, C, WFC and COF.
Comments (21)
  • thunderguts
    , contributor
    Comments (6) | Send Message
     
    It is what they deseve.
    13 Jul 2012, 06:16 PM Reply Like
  • phazer99
    , contributor
    Comments (31) | Send Message
     
    Well, if they don't get paid for the convenience, they will stop offering credit cards, and then were does that leave the poor populace who are unwilling or unable to stop spending on credit. I own JPM and hope they can charge as much as they can so I make money.l
    13 Jul 2012, 07:21 PM Reply Like
  • richdiv
    , contributor
    Comments (22) | Send Message
     
    phazer99 - do not worry about JPM. They lose an extra $6 Billion, and just create income by releasing reserves, or moving the loss to prior periods. At some point you might want to know if they are really earning money for you, however. I am not sure how you would know, given our accounting standards. But who cares - the taxpayers will create income for you.
    15 Jul 2012, 10:46 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3432) | Send Message
     
    Mmm, phazer99, you might want to reread the article. JPM is on the side that lost.
    16 Jul 2012, 11:19 AM Reply Like
  • Getsome
    , contributor
    Comments (45) | Send Message
     
    At what point does lending become loan sharking?
    14 Jul 2012, 03:12 AM Reply Like
  • marilyn61
    , contributor
    Comments (173) | Send Message
     
    Although one cannot agree with extortionate or unnecessary fees, it also has to be excepted that these cards companies do inform the card holder of their fees in advance. So maybe we should all read their ' terms and conditions ' thoroughly before agreeing to take the card in the first place. I for one have to admit that I never do !!!
    14 Jul 2012, 04:34 AM Reply Like
  • MexCom
    , contributor
    Comments (3058) | Send Message
     
    Reading the story: The merchants readily accepted the cards for payment and the fees to be paid. The merchants worked these costs into their total cost of doing business. The consumer had the convenience. The gripe to be settled is that the fees were not "negotiated." This is mentioned to be a fee savings of $1.2 billion. So why the $6.05 in damages? Who got damaged? Who is in the class to get the damages? Consumers? the Merchants? Most of course would go to the lawyers. This is simple litigation larceny and it needs to be stopped in the constant attack against the financial sector. This is a drag to our economic recovery. If you can do a better job and lower the costs "imposed" by Visa and Master Card why not start up your own credit card business and compete.
    14 Jul 2012, 06:05 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3345) | Send Message
     
    If my grocery store and gas station start charging me a 3% fee to use my Visa card,I'll stop using my Visa card. One trip to the atm per week would save me 3%. that's better than t-bills.
    14 Jul 2012, 09:37 AM Reply Like
  • Financial Insights
    , contributor
    Comments (957) | Send Message
     
    They already do. It is embedded in the cost of the goods sold to you.
    15 Jul 2012, 05:28 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3432) | Send Message
     
    Second that, PDR.
    15 Jul 2012, 05:46 PM Reply Like
  • chopchop0
    , contributor
    Comments (3846) | Send Message
     
    How much do you want to guess that restaurants continue to accept V/MA etc. without fees. Using your card is one of the convenient ways of eating out, and restaurant owners know this. Heck even one decided to stop accepting cash altogether.

     

    http://on.wsj.com/Lo9wb0
    14 Jul 2012, 02:53 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4095) | Send Message
     
    In their never ending quest to extract a tax on everything and distribute the spoils to their supporters and varied interest groups, politicians salivate over the potential of a cashless society. If they can eliminate the middle man, politicians can reap the vig as well.
    14 Jul 2012, 06:59 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    how much do you wanna bet this WILL NOT result in any savings to the consumer just reduced costs for the merchants...
    14 Jul 2012, 10:28 PM Reply Like
  • Getsome
    , contributor
    Comments (45) | Send Message
     
    RSI, even if that were the case. The Merchants offer a service and a choice to shop with them or else where. Also, the Merchants have to compete with in the bounds of Capitalism. Our current form of Government on the other hand are thieves that make Al Capone look reasonable.
    15 Jul 2012, 12:51 AM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    You don't have any problem with merchants negotiating as a group? A little naive. Seems like simply another cartel leading to even more price fixing than there is now. So going elsewhere will mean the same prices.
    15 Jul 2012, 09:32 AM Reply Like
  • riccaro1
    , contributor
    Comments (415) | Send Message
     
    Seems like every other week a new lawsuit or a fine is imposed on one of the 5 big banks, or all of them.

     

    I am loosing track of how many fines and lawsuits WFC has lost since the U.S. Government bailed them out. Which was a mistake.

     

    Every time you write a check or use your credit card someone is selling that information about you.

     

    When I use cash in Lowes, they demand my phone number. That demand goes unfilled.

     

    My suggestion is, use cash more and credit cards and checks less and less. Vendors respond favorably to cash .

     

    There has never been a case to break up the too big to fail banks.
    These people are scrupulous thieves. That deseved to be jailed instead of being given low or no interest loans from the Fed.
    15 Jul 2012, 01:36 PM Reply Like
  • billddrummer
    , contributor
    Comments (1738) | Send Message
     
    Might you mean unscrupulous thieves? Or do you mean they are scrupulous in their thievery?

     

    Please expand.
    15 Jul 2012, 02:25 PM Reply Like
  • riccaro1
    , contributor
    Comments (415) | Send Message
     
    They are self righteous in their high crimes. Never would they even imagine that what they do is criminal. They maintain the highest of morals while stealing from their brethren.
    21 Jul 2012, 09:01 PM Reply Like
  • Bear Bait
    , contributor
    Comments (689) | Send Message
     
    The fee change is for credit cards and not debit cards. I use a credit card or use my debit card as a credit card to get the consumer protection benefits of a credit card transaction. If businesses I deal with begin to charge a transaction fee for credit card use I will first attempt to do business at businesses that do not charge a fee purely as a matter of principle. If trhat doesn't work I'll just use me debit card as a debit card.
    15 Jul 2012, 06:13 PM Reply Like
  • green_valley
    , contributor
    Comments (43) | Send Message
     
    Debit cards debit your account immediately. I have not tried using it w/o funds. You can dispute a purchase with a credit card. I have not done that with a debit card so there may be a few differences.
    15 Jul 2012, 07:22 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3432) | Send Message
     
    My debit card agreement does allow for disputes but there's nothing like having the upper hand by withholding credit card payment until a dispute is settled.
    16 Jul 2012, 11:22 AM Reply Like
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