Quote:
Originally Posted by Cecil Terwilliger
Nobody thinks rewards points are free. They know it costs the merchant, they just don’t care.
The fee charged to consumers won’t be dependent on the type of credit card. Everyone will pay the same fee. So the people with non rewards cards will still be subsidizing the rewards cards.
This helps no one, including merchants. It’s incredibly naive to think this will result in merchants banding together to fight credit card companies. All this does is cost customers more and make merchants look bad. The credit card companies are laughing at people who think this is to their benefit.
The fact that merchants have been hoodwinked into thinking this is the solution and not banding together with consumers for better consumer protection is a sign of how poorly the average business owner and customer understand what’s happening. Hardly surprising though.
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By merchant - you mean the consumer currently pays the hidden fee. That’s how a universal fee like a tax is passed through to the consumer
If you believe this helps no one why was this clause not to charge a fee in merchant agreements?
As to whether different cards will charge a different fee that will be interesting as they can charge more then they pay in fees, it’s unclear from the article if that is per card or in aggragate