Swipe Fees: Do You Pay Extra To Use Your Card?

DailyFinance:

We got a lot of reaction to the article about how changes in debit and credit card swipe fees may affect you. Swipe fees are the charges retailers pay when they allow you to use plastic at their store. In reviewing the comments and speaking about the story on radio stations nationwide, one question kept coming up: "Wait, do I pay when I use my debit card?" Some of you jumped in to help clarify that consumers don't pay those fee ... at least not yet.

Read the whole story: DailyFinance

Comments

[MochaLite]

04:47 PM on 07/13/2011

Good reason to stop using plastic! You'll spend less overall!

[spytheweb]

04:08 PM on 07/13/2011

I don't. I last used a credit card in June 2001.

[fortressfountain]

04:01 PM on 07/13/2011

No they do not prohibit that-they can make it a mandatory amt like $10.00 -$20.00 dollars. Why would the merchant want to pay more to process credit than they make in profit?
You can thank the banks for that. Never fair always looking for new meat to rob.

[pepper1311]

03:45 PM on 07/13/2011

I pay cash and should get a discount.

[blood thinner]

03:21 PM on 07/13/2011

I would really appreciate if somebody could answer this question.
If I cancel one of my credit card, would that negatively affect my credit score, ratings or history?

I have this card for almost 5 year and never fell behind payments, but they charge annual fee so I want to terminate that.

[SwingingFromCenter]

02:56 PM on 07/13/2011

Fact:  If you own a small business and only keep 4 cents out of every dollar you make, then you have a flawed business model.

Signed,

A small business owner.

[evilchihuahua]

02:29 PM on 07/13/2011

One way or another you are paying for this convenience.
Be it a direct fee, or higher prices, YOU ARE PAYING.

[Ed Baker]

03:20 PM on 07/13/2011

And you will continue to pay - the merchant is going to charge the maximum price he can get - and with the regulations, he'll just keep more of it, and you will pay for your checking account.

Walmart won.

[TurnSeiki]

02:05 PM on 07/13/2011

I'm on the back-end. I make policy. When someone uses a VISA, I charge them an extra 3%. When someone uses an AMEX, I charge them an extra 5%. I pass my fees right along to the customer. They're the ones benefiting from my widget. They will pay for my overhead.

[Almondo]

02:15 PM on 07/13/2011

Apparently you don't read many merchant agreements.

[portabello]

02:26 PM on 07/13/2011

You signed a contract. Typical Republican that talks the talk of free markets but the second it affects your bottom line you violate your contract with the credit card companies.

It only takes one of your customers to turn you in and your days of taking credit card payments are over.

No one held a gun to your head to force you to sign those contracts.

It's so much easier to make money when you're a crook, isn't it?

[StopMakingSense2]

01:53 PM on 07/13/2011

Just tell republicans it's a hidden tax that is taking away their freedom and unpatriotic and they will get rid of it. It's not like they would bother to understand the issue.

[runtexas]

04:11 PM on 07/13/2011

That's funny!

When the Democrats decided to take over the banks and regulate them, then processing fees increased for the consumer. Companies, including mine, took a 4% price increase to offset the increase in fees.

Luckily most consumers never notice anything below a 5% price increase.

It's much like a tax - we're all paying for it one way or another.

[JPWright]

01:21 PM on 07/13/2011

I am finding more and more businesses are saying, "You can use your credit card, but we'll charge you an additional 3% charge."

[portabello]

01:42 PM on 07/13/2011

That violates their agreement with the credit card companies and should be reported.

I've never seen a merchant do that, they will pull your credit card machine out of your store pronto if caught.

[bluhare]

01:57 PM on 07/13/2011

Can't remember which company (Arco?), but they charge a 45 cent "convenience fee" for using a card.

[portabello]

01:15 PM on 07/13/2011

It is a violation of the contract the merchant has with the CC companies to charge someone for using a credit card. If you are charged a fee for using a credit card, contact the CC company immediately.

The merchant pays the fees and passes those costs on to all customers, regardless of whether you pay with a card or cash.

[shthar]

02:31 PM on 07/13/2011

It's not a fee for using the card, it's a discount for cash!

[portabello]

02:32 PM on 07/13/2011

Merchant agreements specifically prohibit that.