Consumers will see extra charges when they use plastic as a byproduct of the massive settlement...

Consumers will see extra charges when they use plastic as a byproduct of the massive settlement between retailers and credit card companies. Merchants have wider authority to add a surcharge for credit card transactions as part of the historic deal. Premarket: V +3.2%, MA +4.1%, AXP +0.4%.

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Comments (15)
  • jrgoldman
    , contributor
    Comments (7) | Send Message
    well, looks like i go to all cash basis
    16 Jul 2012, 07:44 AM Reply Like
  • SaltyDog62
    , contributor
    Comments (835) | Send Message
    Been cash only 6 years now. Don't miss credit cards, love no debt.
    16 Jul 2012, 07:46 AM Reply Like
  • Bear Bait
    , contributor
    Comments (922) | Send Message
    Today I rarely carry much cash. I will go back to cash before I pay 1 to 2% as a transaction fee. I haven't tried the new cell phone based payment setups yet either. I maybe wrong, but I think those retailers that charge the fee will lose business. I will avoid those retailers when possible just because.
    16 Jul 2012, 07:47 AM Reply Like
  • noob
    , contributor
    Comments (393) | Send Message
    I wonder if they will actually apply a charge to the credit card transactions or if they will simply jack up all the prices 2% across the board - making the cash users pay for the credit cards.
    16 Jul 2012, 07:55 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
    The prices already reflect the credit card fees. Don't see how retailers can start charging a fee if it shows up at the register without a hugh backlash. Also, what about private cards like Sears and Penny?
    16 Jul 2012, 09:49 AM Reply Like
  • marilyn61
    , contributor
    Comments (173) | Send Message
    Sad really because we all love the convenience of using credit cards. If prices go up by 2% then we cannot win either way.
    16 Jul 2012, 08:04 AM Reply Like
  • frosty
    , contributor
    Comments (720) | Send Message
    I pay taxes to the town, state and federal governments. I will NOT pay a sales tax to 7-11.
    16 Jul 2012, 08:32 AM Reply Like
  • uglyowl
    , contributor
    Comments (17) | Send Message
    I guess some merchants have forgotten how much of a pain accepting checks is and chasing around deadbeats for bad checks. Unintended consequences on the way.
    16 Jul 2012, 08:55 AM Reply Like
  • chopchop0
    , contributor
    Comments (5157) | Send Message
    Yet these stocks are popping pre-market. Probably a couple of reasons why:


    1) As posted elsewhere on SA in market currents, many states prohibit surcharges on CC transactions anyways, including the big states like NY, TX, FL etc. so it's not clear this will happen in the most populated states


    2) Retailers CANNOT charge a surcharge more than the actual fees they pay to V/MA, i.e. no skimming off the top.


    I don't see this affecting the moats of V or MA, long-term and remain long both stocks. The recent downgrades a week ago were a good buying opportunity.
    16 Jul 2012, 09:06 AM Reply Like
  • sportsguy
    , contributor
    Comments (156) | Send Message




    that is what one neighbor told me his BtoB business has done
    16 Jul 2012, 09:07 AM Reply Like
  • The Delivery Guy
    , contributor
    Comments (193) | Send Message
    Every marketing study ever done shows using plastic increases the spend rate per customer... talk about biting the hand that feeds you. I think the convience store group will regret this.
    16 Jul 2012, 09:34 AM Reply Like
  • NIRP
    , contributor
    Comments (422) | Send Message
    All additional cost are always past on to the end user. Consumers have been paying the 4% charge for years. I know business that discount if cash is used and I now business that take only cash and provide great service and product keeping thier prices down. Most peoples debt problems are due to them not having a handle on how much money they spend. It shows up six weeks later when they get thier bill and can't believe they spent that much. Been there done that. I have used cash most of my life...... 0 debt and 820 credit score. When I owned a business my suppliers let me know I was the only customer that paid on time. I must say I do like the line purchases that show up on credit card statements. It allows me to see how dump I was on some purchases I made.
    16 Jul 2012, 09:35 AM Reply Like
  • heywally
    , contributor
    Comments (249) | Send Message
    "Consumers will see extra charges when they use plastic as a byproduct of the massive settlement between retailers and credit card companies"


    Wrong. They 'might' see extra charges and in some states, even that won't happen because state law takes precedence. The costs also 'may' just get built in to the product prices because in the end, us bottom feeding consumers take the brunt of all economic pain.
    16 Jul 2012, 09:47 AM Reply Like
  • kmi
    , contributor
    Comments (4583) | Send Message
    As I stated elsewhere vis a vis this situation, some merchants discount purchases made by debit/cash, in particular gas stations in my area.


    This will likely become a trend in the more cut-throat sectors of the economy, but not where the merchant has pricing power.
    16 Jul 2012, 09:58 AM Reply Like
  • $CLU
    , contributor
    Comments (258) | Send Message
    Many of the new phone wallet / payment systems coming out attempt to bypass Visa and Mastercard. The problem is that they couldn't "encourage" customers to head for these routes per the CC agreements.


    Let the "encouragement" begin for the creative destruction of V and MC.
    16 Jul 2012, 12:06 PM Reply Like
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