Those of you who use credit cards should read this.

[MinusTheBear]

My debit card can be used either as a debit or a Visa card but the Visa gets automatically withdrew from our checking account. I have to look into the protections...

I used a different CC for 90% of my purchases.

What you are referring too is a Visa Debit. I'm not sure what provider (cc or bank) you would deal with in case of fraud as it kind of deals with both. I've never used those type of cards.

 

[j_garcia]

Visa is the service they use to perform the transaction - the actual processed function is an electronic debit from your account; thus the name "debit card". So basically Visa is just the "relay" for the transaction. They have the systems in place to do it and offer the service to places like your bank.

 

[MinusTheBear]

So the debit transaction takes place on Visa servers. So Visa is the one responsible for fraud protection/restitution? However, you have to notify your bank institution of the fraud first?

 

[Grador]

So the debit transaction takes place on Visa servers. So Visa is the one responsible for fraud protection/restitution? However, you have to notify your bank institution of the fraud first?

Far more likely Visa is the server, and doesn't care what happens. Your bank deals with everything.

 

[jostenmeat]

There was a time when I was pretty much using the debit card, and another time when I was pretty much using cash. For the latter, it's pretty much the only way that my spending couldn't be tracked and I liked that element, hehe, but now I just don't care as much. Cash however is also the most disgusting and unhealthy thing that any given person handles on a day to day basis. So now I don't even use cash for $5 sandwiches, because it would mean I have to handle the cash.

CCs (properly used) can help build your credit. As for protection, I thought someone told me one of the things it has over debit cards is that the person running your info can much more easily steal the necessary info to take advantage of you with the debit card in particular, regardless of the post-situational protections? Is that right?

I wish I started using CCs earlier in life, I could have got a few free airplane tix I'm sure.

For those who prefer to buy their electronics from Costco (too bad their Panny plasma selection went from excellent to undesirable over the years), whether faxes/phones, Garmin Nuvis, Canon cameras, the Costco AMEX gives you a 3 yr warranty for free, and that's pretty nice. I think it also works on a cash back system rather than "points".

I was almost tempted enough at one point to actually pay an annual fee for the first time in my life, in order to try the AMEX Blue Cash Preferred, the cost being $75/yr. Why? Because it gives a huge whopping 6% cash back on groceries (interesting to someone who is evolving as a "foodie"). A solid 3% back on gas ain't nuthin' to complain neither. (Also 3% at dept stores.) 1% on everything else.

If I had two sons who were teenage linebackers, or that my daily commuter was a Suburban, I'd probably already have the card. If they offered the 6% back at booze stores, I'd probably already have it (I actually asked by phone if they could possibly count as "grocery" lol.)

Another really nice benefit for me about using the CC is that the filter options are so darn convenient. I have a very accurate idea about the breakdown of my monthly expenditures, whether groceries, restaurant/bar, anything, just at a click. I never had nearly the same understanding of my expenditures when using primarily a debit card or cash.

Basically, outside of an inability to handle debt, or that you didn't want any entity at all to possibly track your spending, or maybe that you prefer to engage in illegal "under the table" transactions, I do not understand why you wouldn't use a CC for just about everything.

 

[ImcLoud]

I don't let me wife carry cash, its just asking for trouble, she uses cc for everything.... I also use cc for almost all my business transactions, fuel, parts on the road, ect... all cc, always pay with in the 30days so no charges, but if they charge I will be looking into other options such as gas accounts and petty cash in each truck....

 

[GO-NAD!]

"Next time you go to the store, you may see a sign that tells you that you will be charged a fee if you use a credit card. That fee can be anywhere from 1.5 percent to 4 percent of your purchase.

These checkout fees became a reality Sunday."





Read more: Credit card swipe fees: What you need to know - KMSP-TV Credit card swipe fees: What you need to know - KMSP-TV​

I'm not sure who the villain is here - the CC companies or the retailers. The CC fees are already being passed on to customers. Are the retailers now going to add a surcharge on top of the fees already being charged? Or, will they reduce their prices for customers paying with cash or debit? Something tells me it will be the first option.

 

[jostenmeat]

I'm not sure who the villain is here - the CC companies or the retailers. The CC fees are already being passed on to customers.

I won't say for certain, but I'm not sure that is correct. I think the only "villain" really is the CC company, but only from the eyes of the retailer (simply because they have to pass along the payments for the fees, whether from their own pockets, or from customers who are none too happy about the refusal of the stores to pay for their behalf, for the right to use the CC in the first place). The CC is not the villain to us (assuming we pay it off in time, because otherwise it's all free goodies for nothing extra out of pocket), and the retailers aren't villains (obviously to me) to us, because otherwise we wouldn't choose to give them our money.

Are the retailers now going to add a surcharge on top of the fees already being charged? Or, will they reduce their prices for customers paying with cash or debit? Something tells me it will be the first option.

If they want to pass the fees to the customers, it's up to the customer whether or not he/she is willing to pay for them. They (we) have the option of debit or cash perhaps, or in fact just going to a completely different store. I think the latter would happen rather often because so many people don't have much cash on hand, at least it seems to me. If the retailer does decide to charge this fee, they are going to risk losing business. In fact I'm almost sure they'll lose some business, but it's just a matter of how the balance sheet looks at the end of the day.

I don't really see a "villain" here in this situation, but I'm probably just being naive.

 

[Grador]

I would never claim a CC company is a "good" company. I've never had a dealing with them that's left me with the warm and fuzzies, and you never read a news article about them being cool people.

 

[Adam]

I like credit cards. They are very convenient. As are debit cards. Which to use, or to use cash only, depends on one's own personal level of financial control and responsibility.

Amazon takes checks, but sending one in kind of defeats the point of getting two-day shipping. Do I spend more than I would with cash? Sure...but being naturally thrifty (that's polite for "cheap" ), it doesn't hurt to have some help in actually buying stuff that makes me happy.

I've been happy with the people that I've dealt with at Discover. They've all been nice, and I tend to get what I think is fair. In my almost 20 years of being with them, I've been late in paying twice (by about eight hours each time) - and they didn't give me any trouble at all in forgiving the late payment and refunding the fee.

 

[GO-NAD!]

I won't say for certain, but I'm not sure that is correct. I think the only "villain" really is the CC company, but only from the eyes of the retailer (simply because they have to pass along the payments for the fees, whether from their own pockets, or from customers who are none too happy about the refusal of the stores to pay for their behalf, for the right to use the CC in the first place). The CC is not the villain to us (assuming we pay it off in time, because otherwise it's all free goodies for nothing extra out of pocket), and the retailers aren't villains (obviously to me) to us, because otherwise we wouldn't choose to give them our money.



If they want to pass the fees to the customers, it's up to the customer whether or not he/she is willing to pay for them. They (we) have the option of debit or cash perhaps, or in fact just going to a completely different store. I think the latter would happen rather often because so many people don't have much cash on hand, at least it seems to me. If the retailer does decide to charge this fee, they are going to risk losing business. In fact I'm almost sure they'll lose some business, but it's just a matter of how the balance sheet looks at the end of the day.

I don't really see a "villain" here in this situation, but I'm probably just being naive.

As I understand it, CC companies charge retailers for the "privilege" of allowing customers to use said credit cards. That's a definite fact in Canada and it's been that way since.....well, forever. I'd be very surprised if they don't currently do that in the US. The thing is, these fees are just buried in the price of goods & services, as they are a cost to the retailers. It really is a shell game, because the CC companies currently don't allow retailers to pass these fees on to customers. All that means, is that everyone will pay the same price, regardless of the form of payment. So, you're paying those fees now, they just aren't reflected on the receipt. As I understand it (this same issue has cropped up in Canada, I just don't know what the current status is) retailers just want to have those fees reflected on the receipts. It will encourage people to use cash/debit more, reducing the amount retailers pay to the CC companies - which is why the CC companies are dead set against it. The big question is, if retailers get their way, will they reduce their prices, because the CC company fees are no longer included? Or, will they just maintain current pricing and just pocket the extra profits, while charging the CC fees on top of their current prices.

To say that retailers are not currently permitted to charge transaction fees to customers is just smoke and mirrors. They are a cost to the retailer, so they are included in the price, by default. The problem right now, is that customers who pay with cash/debit are unknowingly paying those fees, because there is no difference in the price they pay for goods and services. They just don't enjoy the convenience & benefits associated with paying with a CC.

I personally enjoy the convenience & benefits of using a CC. But, even if one pays off the balance every month and doesn't incur interest charges, don't be fooled into thinking that one doesn't pay to use a CC.

In the end, I think it would be a good thing for those transaction charges to be reflected in prices, so that customers can make informed choices as to how to pay.

 

[markw]

This could be a double edged sword for any retailer who chooses to implement this fee.

This fee has always been there. It is tax deductable as a cost of doing business.

This fee has been "rolled into" their pricing structure.

So, unless they reduce their prices by a similar amout, to now try to pass this along to their customers will be an added bonus for them and show them for the shallow. greedy merchanrs they are.

I, for one, would strongly reconsider staying with them.

Now, I do see where some gas stations here charge different prices for cash of credit. i wonder if retail stores wil go the same way.

[edit] Now that I read the whole thread, I see go-nad just said basically the same thing.

 

[Adam]

As you guys have mentioned, it would be smart for retailers to spin this as a savings for cash customers. On that note, though, I think that a lot of people knew/assumed that you could get a lower price by paying cash if you talked to a manager. I pay cash for things like sodas, so I'm not going to go after my three cents ("Hey, I'm paying cash!"), but I know people that have gotten discounts when buying larger items. At least one store here has advertised sales for cash-paying customers.

 

[lsiberian]

As I understand it, CC companies charge retailers for the "privilege" of allowing customers to use said credit cards. That's a definite fact in Canada and it's been that way since.....well, forever. I'd be very surprised if they don't currently do that in the US. The thing is, these fees are just buried in the price of goods & services, as they are a cost to the retailers. It really is a shell game, because the CC companies currently don't allow retailers to pass these fees on to customers. All that means, is that everyone will pay the same price, regardless of the form of payment. So, you're paying those fees now, they just aren't reflected on the receipt. As I understand it (this same issue has cropped up in Canada, I just don't know what the current status is) retailers just want to have those fees reflected on the receipts. It will encourage people to use cash/debit more, reducing the amount retailers pay to the CC companies - which is why the CC companies are dead set against it. The big question is, if retailers get their way, will they reduce their prices, because the CC company fees are no longer included? Or, will they just maintain current pricing and just pocket the extra profits, while charging the CC fees on top of their current prices.

To say that retailers are not currently permitted to charge transaction fees to customers is just smoke and mirrors. They are a cost to the retailer, so they are included in the price, by default. The problem right now, is that customers who pay with cash/debit are unknowingly paying those fees, because there is no difference in the price they pay for goods and services. They just don't enjoy the convenience & benefits associated with paying with a CC.

I personally enjoy the convenience & benefits of using a CC. But, even if one pays off the balance every month and doesn't incur interest charges, don't be fooled into thinking that one doesn't pay to use a CC.

In the end, I think it would be a good thing for those transaction charges to be reflected in prices, so that customers can make informed choices as to how to pay.

Canada has a completely different set of rules regarding credit card processing, but you don't pay credit card companies directly normally. You use a provider who handles PCI(which is very expensive), batch processing, the servers and all the back end processing. Your POS provider would have a list of these compatible with their software.

There is a difference between a credit transaction and a debit transaction. A debit doesn't typically go through a batch process while credit does. Before the batch is processed you can actually void the credit transaction. You can't do this with debit. Debit must be returned. You also can't store a Debit card for customer convenience.

 

[lsiberian]

As you guys have mentioned, it would be smart for retailers to spin this as a savings for cash customers. On that note, though, I think that a lot of people knew/assumed that you could get a lower price by paying cash if you talked to a manager. I pay cash for things like sodas, so I'm not going to go after my three cents ("Hey, I'm paying cash!"), but I know people that have gotten discounts when buying larger items. At least one store here has advertised sales for cash-paying customers.

My local liquor store gives a cash discount so you bet I'm taking advantage of that.

 

[jostenmeat]

As I understand it, CC companies charge retailers for the "privilege" of allowing customers to use said credit cards. That's a definite fact in Canada and it's been that way since.....well, forever. I'd be very surprised if they don't currently do that in the US. The thing is, these fees are just buried in the price of goods & services, as they are a cost to the retailers. It really is a shell game, because the CC companies currently don't allow retailers to pass these fees on to customers. All that means, is that everyone will pay the same price, regardless of the form of payment. So, you're paying those fees now, they just aren't reflected on the receipt. As I understand it (this same issue has cropped up in Canada, I just don't know what the current status is) retailers just want to have those fees reflected on the receipts. It will encourage people to use cash/debit more, reducing the amount retailers pay to the CC companies - which is why the CC companies are dead set against it. The big question is, if retailers get their way, will they reduce their prices, because the CC company fees are no longer included? Or, will they just maintain current pricing and just pocket the extra profits, while charging the CC fees on top of their current prices.

To say that retailers are not currently permitted to charge transaction fees to customers is just smoke and mirrors. They are a cost to the retailer, so they are included in the price, by default. The problem right now, is that customers who pay with cash/debit are unknowingly paying those fees, because there is no difference in the price they pay for goods and services. They just don't enjoy the convenience & benefits associated with paying with a CC.

I personally enjoy the convenience & benefits of using a CC. But, even if one pays off the balance every month and doesn't incur interest charges, don't be fooled into thinking that one doesn't pay to use a CC.

In the end, I think it would be a good thing for those transaction charges to be reflected in prices, so that customers can make informed choices as to how to pay.

I agree with the point that the customers are paying for the fee, in the sense that the prices listed on all of the cumulative items must reflect everything* of course; all taxes, costs, materials, wages, insurances, profits, and of course CC fees, etc. What I did not know however was that I could get a lower price by talking to the manager, as Adam says below. I wonder at what price point it is accepted to bother asking. I mean would Amazon charge me less money than what is listed on their website if I decided to use a debit card? Even if I asked every single time? Or how about at restaurants? Because as near as I can tell, I never pay more than what is listed, whether at grocery stores, gas stations, anywhere. What I do occasionally see however are places that say, we only accept CC with a minimum purchase of $10, or we don't accept this card or that card, or we just don't accept any card period. The most recent bigger expenditure I made was for a mechanical computer keyboard. Do you think they would have reduced my price by a couple of dollars if I asked about using my debit card instead? Anyway, I' m not one of those people who "knew/assumed" as Adam speaks of, and as I foresaw, perhaps I am indeed naive. If there were always two different prices listed on every item, for every dish on a menu, for every octane version of fuel; one price for CC and one without, I would no doubt have foregone any CC goodies to pay a couple of % points less. Easy.

As you guys have mentioned, it would be smart for retailers to spin this as a savings for cash customers. On that note, though, I think that a lot of people knew/assumed that you could get a lower price by paying cash if you talked to a manager. I pay cash for things like sodas, so I'm not going to go after my three cents ("Hey, I'm paying cash!"), but I know people that have gotten discounts when buying larger items. At least one store here has advertised sales for cash-paying customers.

 

[Steve81]

Do you think they would have reduced my price by a couple of dollars if I asked about using my debit card instead?

No; these kinds of discounts would apply to actual cash, not a debit card. Merchants will still have transaction fees with a debit card.

 

[Rickster71]

Do you think they would have reduced my price by a couple of dollars if I asked about using my debit card instead?

No. A debit card isn't cash.
I'll hear people say, "Make the check out to cash." That's not cash either. It's a concept often misunderstood.

The real reason to 'literally' use cash is because it lacks a paper trail and is used to avoid taxation. That's not legal, however some people involved in private transactions do it.
One instance where it is commonly used is in a landlord / tenant rent transaction. The tenant is offered to pay lower monthly rent if they pay cash.
The landlord hides that income and doesn't claim it in income taxes.
So it benefits both parties. However it's not legal.

 

[KEW]

Now, I do see where some gas stations here charge different prices for cash of credit. i wonder if retail stores wil go the same way.

Almost all gas stations were doing this a couple of decades ago and I think I've seen it in the past few years at smaller rural stations. I wonder if different rules have always applied to gas stations.

The linked video makes clear a couple of good points:
1) They really don't expect many retailers to jump on this anytime soon since the fees are already built into their model.
2) The retailer is required to inform you at the point of sale, so it should never be an unexpected surprise on your card statement.

 

[KEW]

Do you think they would have reduced my price by a couple of dollars if I asked about using my debit card instead?

According to the expert discussing this in the video linked in the original post, no additional fee would be added for a debit card purchase or a check.

The ruling only applies to CC transactions.