Visa, Mastercard Mull Increasing Fees for Processing Transactions

Staples

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The Obama admin capped what could be charged through debit transactions to 35 cents if I remember correctly. Wonder if that has been rolled back since. I think they can charge whatever they want through credit transactions. AMEX charges a fortune and that is why they are not accepted in many places.
 

Staples

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Maybe this will spur 3rd party epayment systems like Apple Pay / Samsung Pay and Google Pay?
Apple pay just makes you VISA card digital. It still is 100% like a VISA card transaction. I'll assume Samsung and Google are the same as well.
More stores may issue their own credit cards because transactions are free or very very cheap.
 

aaronspink

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Maybe this will spur 3rd party epayment systems like Apple Pay / Samsung Pay and Google Pay?
Unlikely. Payment networks are actually pretty difficult from a financial and technical standpoint. There is a reason that Apple Pay et al are just layers into the standard MC/Visa network.
 

Tsumi

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Debit cards are via Visa as well btw...


And why should they cover fraud? tech exists that drives down fraud.


On an aside... all this will do is drive inflation as this will be passed onto the consumers
Chip tech without a pin requirement or something similar does nothing to drive down fraud.
 

dvsman

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Ah too bad. Didn't know that. Well if anyone is big enough to do something - it's going to be one of the big ecommerce / social giants.

China pulls it off with Alipay and I think their social network is a big player in epayments as well. No Visa or Mastercard or Amex at all.
 

Tsumi

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who said anything about without pin?
No pins are required in the US for credit cards. Only a signature.

Ah too bad. Didn't know that. Well if anyone is big enough to do something - it's going to be one of the big ecommerce / social giants.

China pulls it off with Alipay and I think their social network is a big player in epayments as well. No Visa or Mastercard or Amex at all.
US banks are trying to go in the same direction with Zelle I believe.
 

naib

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No pins are required in the US. Only a signature.
Chip and pin is called Chip and pin for a reason because it requires a chip and a pin. IF you have a card with a chip but still use signature, how do you expect fraud to change?
 

Tsumi

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Chip and pin is called Chip and pin for a reason because it requires a chip and a pin. IF you have a card with a chip but still use signature, how do you expect fraud to change?
Ask Visa and Mastercard. And by extension, American Express and Discover. No pins are required for any credit card purchase in the US.
 

Mozgus

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I know you guys usually shit on crypto here, but uh....this is why you guys need crypto.
 

MMitch

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Chip and pin is called Chip and pin for a reason because it requires a chip and a pin. IF you have a card with a chip but still use signature, how do you expect fraud to change?
Pretty much all the cards we get now have paypass on them activated by default. You do need to use chip and pin for >100$ but under that a simple tap of the card on the reader much like you would do with your phone is sufficient.
Reminds me I need to get a RFID shielded wallet lol.
 

NWRMidnight

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More incentive for stores to accept AmEx?
Many stores don't take AmEx is because it is the most expensive card to take for the merchant. It's fees are 75% higher than Visa and MC, Discover is almost right up there with AmEx.. so, no, it won't give them any incentive to accept AmEx.. unless Visa/MC plans on almost doubling their fees.
 

Tsumi

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Pretty much all the cards we get now have paypass on them activated by default. You do need to use chip and pin for >100$ but under that a simple tap of the card on the reader much like you would do with your phone is sufficient.
Reminds me I need to get a RFID shielded wallet lol.
Have not heard of this, and haven't been asked to set pins on any of my credit cards.
 

MMitch

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Have not heard of this, and haven't been asked to set pins on any of my credit cards.
I'm from Quebec province in Canada, maybe I should of made that precision. I like the system we have here but chip and pin doesn't remove all risk. I've had my card cloned 2 times so far and as mentioned paypass is risky but CC company are pushing it onto us.
NFC transaction are interesting and almost accepted everywhere here now but I'm not super comfortable using my phone for every purchase mainly because I might drop it when I'm in a rush / in the winter / simply drunk lol.
Edit: Paypass is even on debit card now.
 

HockeyJon

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You missed the point.
When they are so closely tied to the core of the economy and they have a monopoly, their profit should be limited.
And as pointed out this appears to involve collusion.
So use cash and debit?

Also, how exactly is this collusion? Unless they're meeting together and drafting a plan to raise by a certain amount, you're going to have a hard time proving collusion.
 

HockeyJon

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Because credit card companies use shady tactics and dealings to make it such that merchants cannot charge consumers directly for the processing fee, which hides the fee from consumers. This is one case that this system needs to be regulated.
A lot of merchants give rebates for cash use or just don't accept the credit cards.
 

Gavv

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In their position there needs to be good justification.
The justification is everyone will pay it and they make money.

What do you believe good justification is?

Prices of goods and services go up. There’s your good justification.
 

pututu

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which hides the fee from consumers. This is one case that this system needs to be regulated.
We need price transparency! Off-topic: health care cost is the worst when compare to this.
 

Nenu

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The justification is everyone will pay it and they make money.

What do you believe good justification is?

Prices of goods and services go up. There’s your good justification.
If prices go up they get more money without any % increase.
Their ass is already covered.
 

Gavv

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If prices go up they get more money without any % increase.
Their ass is already covered.
And if they can charge more for the heir good and service because they know people will pay it.

I’m sure they filed their paperwork at the feelings and good justification department
 

NickJames

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I see so their plan was for paper money to be phased out then hit'em with the increased fees.
 
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Gavv

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I see so their plan was for paper money to be phased out then hit'em with the increased fees.
When you control the market.

The funny part is many a store clerk/cashier can’t count back change. Re education would cost more for them.
 

Nenu

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And if they can charge more for the heir good and service because they know people will pay it.
And that is my point, they are a monopoly.
Their action will have a direct negative impact on the economy without good reason.
 

Gavv

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And that is my point, they are a monopoly.
Their action will have a direct negative impact on the economy without good reason.
Lol so does your tv provider when they raise the rates. I’d encourage you prove your claim.
 

Kdawg

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So, how do they even justify taking 3% of everything?

$2.85 billion profits, just for being the middleman.
 

Tsumi

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So, how do they even justify taking 3% of everything?

$2.85 billion profits, just for being the middleman.
Their justification is that is the value of their service.
 
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Fresch

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The point is even if you use cash you pay the extra unless it has a cash discount.
 

PCMusicGuy

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The whole thing is stupid. We should just go back to a cash society. Cards should make things quicker and easier but now the opposite is true. Swipe/insert here, punch in pin or sign, answer some dumb ass confirm/cash back question, etc. The whole process sucks. Some chip readers take 2 seconds and others take 15, not to mention the chip reader is always at the bottom in the least accessible spot. Increased fees I hope will drive to reduced profits for them as more people will go to cash.
 

Spartacus09

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The whole thing is stupid. We should just go back to a cash society. Cards should make things quicker and easier but now the opposite is true. Swipe/insert here, punch in pin or sign, answer some dumb ass confirm/cash back question, etc. The whole process sucks. Some chip readers take 2 seconds and others take 15, not to mention the chip reader is always at the bottom in the least accessible spot. Increased fees I hope will drive to reduced profits for them as more people will go to cash.
Its gotta be businesses not people that decide to do this, most people won't see it directly. The information that gets out there will be the business is raising prices on products, not that because CC transactions cost more they had to raise prices.
CCs are just to convenient now to just give up especially at the large retailer level IMO, fewer and fewer folks want to use a debit card or carry that much cash for a large purchase.
Even those store cards you use to get a discount or points are generally backed by one of the big CC companies.
 

sleepeeg3

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This seems fraudulent.
What do they need the extra capital for?
More and more sales use cards, its not like they are losing out in any way, quite the opposite.
Yet they provide no extra benefit and because they are a monopoly we have no choice but to comply.
I suggest their conduct needs further regulation.
Vote with your wallet? Use cash?

People like to bitch and moan about credit cards, but I don't see alot of people using cash nowadays.

I generally use cash for small purchases, because merchants pay a per transaction fee, which makes up a larger percentage of the total cost on smaller purchases.

I end up using CC's for everything else, even though I know I am screwing myself by causing merchants to raise their prices, for two reasons:
1. I get cash back.
2. I'm caught in a prisoner's dilemma where even if I use all cash, it's not going to change everyone else's habits. Might as well get something for it.
 
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Nenu

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Vote with your wallet? Use cash?

People like to bitch and moan about credit cards, but I don't see alot of people using cash nowadays.

I generally use cash for small purchases, because merchants pay a per transaction fee, which makes up a larger percentage of the total cost on smaller purchases.

I end up using CC's for everything else, even though I know I am screwing myself by causing merchants to raise their prices, for two reasons:
1. I get cash back.
2. I'm caught in a prisoner's dilemma where even if I use all cash, it's not going to change everyone else's habits. Might as well get something for it.
You missed the point, this isnt about you or I.
 

Youn

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I'm still butthurt that "Visa, Mastercard" = "Visa and Mastercard" and it took me many years to realize this strange norm... I hope people don't start talking this "Yea I'm going out with Becky, Linda"... "which one? oh, you mean you think my name is Linda? or... wth I dunno, go away"
 
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