VISA, Mastercard And Banks In $7.25 Billion Retail Settlement

pearlbrown | Jul 13, 2012 | 2,298 posts since 2010

The settlement, if approved by a judge, would resolve dozens of lawsuits filed by retailers in 2005. The card companies and banks would also allow stores to start charging customers extra for using certain credit cards in an effort to steer them toward cheaper forms of payment. Read more

Post a comment

darkdreamer4u | Jul 14, 2012 | 351 posts since 2010

This stinks. So we will end up with various prices for the same goods at the same vendor depending on which way we pay for said goods? Some gas stations are already doing this: the big low price advertized is for cash only (which is noted in very small and easily overlooked print). The credit card price is usually 5 - 8 cents higher. By the time you've pulled over and realize the scam, it's too late and you get at least some gas anyway to make it to the next gas station that doesn't try to pull the wool over their customers' eyes.

paoli2 | Jul 15, 2012 | 2,641 posts since 2011

I was listening to this over the news tonight and I am still very confused about what is going on. I have a lot of "Autopays" to my credit card. Does that mean the companies receiving my payments can charge me more for having them charged to a credit card? Does anyone know when the extra charges will go into effect and exactly how much they will be adding to our charges? I may have to make a lot of changes in how I purchase things so I would like to know what their time table is. Thanks for any information or links you can provide.

51hh | Jul 15, 2012 | 1,693 posts since 2010

"The card companies and banks would also allow stores to start charging customers extra for using certain credit cards in an effort to steer them toward cheaper forms of payment."

It is simply that, merchants (e.g., gas station) can charge extra (say 2.5%) for credit card users. It is up to the merchants to do that or not to do that since it may discourage their customers to go to other card-free stores.

We have to wait to see how it all plays out; i.e., whether (1) only a select few start charging credit card users, (2) most or all stores follow suit, or (3) all find out it is not a profitable proposition and eventually drop such a practice.

As a consumer, we need to (1) be careful to ascertain whether the stores at issue (i.e., we are charging for purchases or billpay) is charging extra, (2) analyze whether it is worth it; i.e., with card rebates whether it is worthwhile to pay cash instead, (3) locate other stores which offer similar price range without credit card fees.

Thus more work for us as prudent consumers for the near-term. If all merchants start charging credit card fees for the long term, we may opt for cash/check payments/debit card for all purchases and ditch credit cards (note: only MC/Visa at this point) entirely; which is not a bad option to me personally (I am sick with credit card complications:D).

Hope this clarifies a bit.:-)

paoli2 | Jul 15, 2012 | 2,641 posts since 2011

51hh: Thanks for the clarification. My DP brought up another issue tonight about this. He thinks the CC companies will cancel our card if we cut down our charges a lot or to a minimum. I think I will call ours and ask what their policy is on this. I use our card for a lot of Autopays and I need to find out if they will charge an extra fee for doing Autopays for utilities, cellphone etc. If they do, I will just go back to mailing in a check. After all this time that we get so used to credit cards, now we may have to return to doing things the old fashion way, good ole cash!

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.