Fed Reserve Unveils Proposed Rule to Limit Debit card swipe fees

[Silverbird]

http://money.cnn.com/2010/12/16/news/companies/debit_card_fee_rule/index.htm
And Master Card and Visa stock go down down down. Tells you how much they profit from these pernicious fees.

 

[Steadygain]

WOW !!!!!

I am really surprized by this - as it seems so totallly insignificant.

I use my banks' machines to avoid the fee - or just get cash from my wife.

Anyway I figured 99.99% came from the interest they charged.


BTW -- Sugar sweet -- I went on line last night to get my Rewards for using my credit card and got $500 Cash.

They initially had a max to $300 -- then a previous year when I wanted cash they just took it out of my next bill.

 

[Mike]

Transaction fees are the bread and butter of credit card companies since they are profitable for any account holder that uses their card (even if they pay their balances in full each month). Without the fees, I would guess that most credit card accounts would carry an annual fee, higher interest rates, and no or reduced rewards for using the card.

How much of these fees show up in the price we pay for goods and services is anyone's guess. I would imagine at least some portion of it is passed on via higher prices - there's no way the stores would eat the entire fee - it'd kill their profit margin.

 

[FAB1]

Fire the FED - who made them Lord and Master anyway?

Oh yeah, it was Goldman Sachs

 

[FAB1]

WOW !!!!!

I am really surprized by this - as it seems so totallly insignificant.

I use my banks' machines to avoid the fee - or just get cash from my wife.

Anyway I figured 99.99% came from the interest they charged.


BTW -- Sugar sweet -- I went on line last night to get my Rewards for using my credit card and got $500 Cash.

They initially had a max to $300 -- then a previous year when I wanted cash they just took it out of my next bill.

Its hardly insignificant. CC companies thrive on the fees. Most people (are lazy or dumb) and dont care about the charges.

 

[Silverbird]

The customer has no idea about these fees - I have no idea how large they are - I just know that they are high enough to put small retail businesses out of business, as you can't run a business on cash anymore. If you run a business with a credit/debit card swiper, you know all about these fees, especially if you run a Gas Station. That's why many gas stations will charge you less for cash. It's bad enough with the charges they get per credit card transaction and for the piece of equipment, but that can be "justified" with risk involved, and the expense of running the system. But debit card transactions? That should not have risk because if you swipe with no money in your account, it should be rejected. Many a gas station has found all of their profit munched by the credit/debit fees.

 

[alevin]

The debit/credit card fees for the swipes are paid by the retailers, fee is embedded in price of goods. The debit card fees are a couple percent lower than the fees for credit card swipes. The 1% refunds/rebates we get for using credit cards? I suspect that is coming out of retailers pockets, net gain for the banks, profit margin compression for the retailers.

Retailers don't have a lot of choice not to accept debit/credit cards to try to improve their profit margins, due to bank pressures-I read that somewhere, the rationale- don't recall what it is exactly.

 

[Silverbird]

More or less retailers are stuck - a "Cash Only" sign on the front door will send most customers away, except in food courts and the like. The contracts they have to sign to get access to the credit/debit card system, hidden fees, gotchas, they get to chew and swallow.

 

[alevin]

I've done business with a one-man auto repair shop who operates cash only. He found the eletrical problem that a regular shop with all kinds of computer diagnostic gizmos and lots of employees couldn't find-even after multiple trips to the big shop and overnight stays for the vehicle. He found the problem and fixed it within 2 hours of the vehicle being in his shop. He also found the fuel pump problem that had just happened the day before, that appeared to overlap the electrical symptoms.

I was extremely happy to pay him cash on the barrelhead-I'd had friends refer me to him and knew he was cash-only when I took vehicle to him.

 

[Elgallo]

Regarding the FED

Also. Isn't there that minor detail that Congress wants clarified regarding why there was 9 TRILLION DOLLARS in off balance sheet transactions to forgin countries.

 

[Steadygain]

The customer has no idea about these fees - I have no idea how large they are - I just know that they are high enough to put small retail businesses out of business, as you can't run a business on cash anymore.

Hey I'm sorry for the small businesses who can't afford it but honey that is the way it is -- and they had better advertise 'big time' and have the highest quality and the absolute cheapest prices if they expect to ever survive from 'Cash'.

I seriously do not care how much there fees are because I don't pay one little cent of the costs.

I use my CC for every purchase I make 99.99% of the time because I get at least 5% of whatever I 'spend' back from the CC Company as a 'REWARD'.

So if my CC Company is stressing to me -- use this CC for this and that and we guarantee you -- you'll get 5% BACK --

Then why on earth would I spend the exact same amount using cash or check - and get nothing back.

Gosh -- When I first started using my CC -- I was so excited I would get like $50 dollars every few months......

but now I wait until the end of the year and get it all at once ($500 this time -- and if I had spent more -- I would have got even more)

The debit/credit card fees for the swipes are paid by the retailers, fee is embedded in price of goods.

AND .... that's the way -- ah huh ...ah huh ...I like it

I get enough money to pay for the entire trip to Baltimore and Back for using my CC --- and there are enough who pay the high interest that it's a win win situation.

Well -- for me it's wonderful -- and I hope it stays this way

I mean imagine my CC Company telling me if I use their card for 1 year they will pay for gas, food, lodging to Baltimore and Back for a whole week so I can spend a week with family at Christmas... well that's exactly what happened in reality ... so

that's the way -- ah huh ...ah huh ...I like it

 

[nnuut]

Many Gas Station around here charge $.06 more a gallon if you use debit or credit cards! Most are independents and they don't make much on a gallon.:notrust:

 

[nnuut]

Wait until Obama raises Taxes on GAS! That was part of his plan to pay for ObamaCare, he probably forgot about that November 3rd!