Cash or Credit?

While stores have always been able to offer cash-paying customers a discount, the recent settlement with Visa, Mastercard and bank credit-card issuers now allows stores to add a charge (equal to the swipe fee) for credit-card payments. Since stores can now disclose the fee, they suddenly have more leverage to negotiate lower swipe fees. Bet that airlines will add the fee, as their customers all pay with plastic.

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  1. CardGuy says:

    I think this is assuming a lot. First, this is only the purposed settlement, it has in no way taken affect yet. Second, Walmart, Target, the National Association of Convenience Stores and the National Grocers Association are all publicly refusing this settlement. It is very likely that more will follow suit. The cut in interchange is only tempory, so it’s benefits are limited. The reason surcharging was allowed is because it lets the Card Brands continue to run wild with fees and only those willing to bill their customer can pass it on. This will cause far more damage than it will solve. You first have the cases where places like Walmart will not surchage in fear of losing cusotmers ( like most businesses will if they surcharge). Then you will have the cases where business over charge customers and state inflated costs when really they are just gouging for money.

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