So annoyed by this. Cash is a nuisance and I like the separation of not having every little purchase on my bank account / debit. I would rather they outlawed bonus programs and capped what credit card companies could charge. I have an Air Miles card, but that's mostly because every card has something. I wouldn't care one bit if that went away and so did this fee.
Depending on who ends up implementing this, I'll probably either try to shop at stores that don't.
If it ends up mostly being local small shops that implement this, it won't be a big deal to me, as I usually used debit there anyway, because I knew the fees were less.
Telus is implementing this fee on their monthly bills, so instead of paying by credit card, I'll be mailing them a postdated cheque (or more than one, maybe!) every month.
So now the wealthy people get their points and the people without points cards because of the qualifying requirements will have to pay more when they spend. How does that not just benefit the wealthy people?
And how does this add to transparency to costs? This is not a good thing for anyone, including merchants. You’re already paying for it as part of the other costs of running a business. Do you want your next trip to subway to include line items for rent, power, wages and food costs?
The cost of goods is increased (assuming an efficient market exists)by the higher premium a business pays on all credit card transactions. Each person pays this premium regardless of transaction method. Therefore those with higher points paying cards which also charge businesses higher premiums benefit more when the average cost of cards is past on to the consumer. Right now a person with a no points lower premium card is subsidizing my purchase with a fancy card.
It adds transparency to costs because people think getting “free points” isn’t costing them anything when in fact it’s costing everyone something. A few dollars for a plane ticket isn’t a cost like rent, power, wages, as a cost of delivering the product or service. Instead it’s an arbitrary fee added onto every transaction to purchase hotel rooms and plane tickets.
Now if all cards had a fixed fee that was regulated THEN I would agree with you that should be baked into the price as the cost of processing a transaction or handling cash or processing debit. But when fees are variable and it is prohibited to pass on this variable fee and prohibited to not accept specific visas then transparency and attacking the monopoly is good.
Hopefully sectors of business agree together to pass these fees onto consumers as a method of fighting back against the credit card companies.
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As much as I don’t like it, it’s transparent. Your credit card points program is not free. Right now it’s great to use a credit card for absolutely everything because you can’t see the cost merchant is burying in their prices.
If merchants start offering cash or debit card discounts, you have to do the math on how much those points are really worth to you.
On my Apple Card for example it’s easy, 2% cash back and the benefit of keeping my money for a month. A 3% cash discount and would probably be my tipping point.
So now the wealthy people get their points and the people without points cards because of the qualifying requirements will have to pay more when they spend. How does that not just benefit the wealthy people?
And how does this add to transparency to costs? This is not a good thing for anyone, including merchants. You’re already paying for it as part of the other costs of running a business. Do you want your next trip to subway to include line items for rent, power, wages and food costs?
In your haste to find reasons to hate people with money you got this exactly backwards.
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This is going to be a pain… I hope merchants have it clearly posted that they charge a fee or don’t… I can just imagine being in a line and paying by CC then see the fee come up and having to tell the clerk to cancel and pay by debit instead… Would rather get rid of the rewards system altogether.
This is going to be a pain… I hope merchants have it clearly posted that they charge a fee or don’t… I can just imagine being in a line and paying by CC then see the fee come up and having to tell the clerk to cancel and pay by debit instead… Would rather get rid of the rewards system altogether.
Man, I dont want to charge a fee at all, and I wont. I just dont want to be stuck with the bill.
Most people think that a few percent here or there doesnt matter, but it does, especially on large charges.
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The only.problem.i have is that you might not know until.you get to the till and advertised prices aren't really the price. The 15.00 club house is now 20 bucks with tax, tip, visa fee.
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The only.problem.i have is that you might not know until.you get to the till and advertised prices aren't really the price. The 15.00 club house is now 20 bucks with tax, tip, visa fee.
Is it wrong to assume that based on the unnecessary number of periods in this post that you had a great thanksgiving?
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This is awesome. Everyone will still compete on price, and eventually it will level out to me not paying a few extra percent on every transaction, and having to use a rewards card to feel like I get some of it back, meanwhile incurring the costs of the overhead to operate those programs.
I'd way rather pay debit and just pay less at the till.
Why not announce that your company won't implement this fee, then quietly increase all prices by 1% no matter what payment method you use?
A profitable business already has that amount included in their prices. It would be the opposite - companies who charge the fee should be dropping their prices 1%.
This is awesome. Everyone will still compete on price, and eventually it will level out to me not paying a few extra percent on every transaction, and having to use a rewards card to feel like I get some of it back, meanwhile incurring the costs of the overhead to operate those programs.
I'd way rather pay debit and just pay less at the till.
Except for the people who outright offer a cash/debit discount, what percentage of companies do you think will lower prices? 1%? Telus is going to charge fee... Did they say anything about lowering the plan costs for everyone by the 2% or whatever they will charge for credit card payments?
Youll be paying the same but the credit card people will pay more.
It will be very interesting to see how this plays out.
The only businesses who weren't playing the credit card game before were a few "cash only" restaurants.
I've used a credit card for every single purchase for many years. I understand merchants were eating credit card fees, but I also believe they were adjusting their prices to compensate for that.
Telus is implementing this fee on their monthly bills, so instead of paying by credit card, I'll be mailing them a postdated cheque (or more than one, maybe!) every month.
Manual touch transactions can cost around $40 for large corps to process. Just all the AR layers. Even if it was half for Telus it would cost them 10x what the fee is.
This to me is a legit way to hurt them for doing this if they take manual check. Now it also costs you time and energy as well but if enough people do this I can see them do what all corps do…stop taking manual checks lol
Manual touch transactions can cost around $40 for large corps to process. Just all the AR layers. Even if it was half for Telus it would cost them 10x what the fee is.
This to me is a legit way to hurt them for doing this if they take manual check. Now it also costs you time and energy as well but if enough people do this I can see them do what all corps do…stop taking manual checks lol
Telus will just pretend they didn't get the cheque, then hit you with a late fee. There is no winning play for us!
The cost of goods is increased (assuming an efficient market exists)by the higher premium a business pays on all credit card transactions. Each person pays this premium regardless of transaction method. Therefore those with higher points paying cards which also charge businesses higher premiums benefit more when the average cost of cards is past on to the consumer. Right now a person with a no points lower premium card is subsidizing my purchase with a fancy card.
It adds transparency to costs because people think getting “free points” isn’t costing them anything when in fact it’s costing everyone something. A few dollars for a plane ticket isn’t a cost like rent, power, wages, as a cost of delivering the product or service. Instead it’s an arbitrary fee added onto every transaction to purchase hotel rooms and plane tickets.
Now if all cards had a fixed fee that was regulated THEN I would agree with you that should be baked into the price as the cost of processing a transaction or handling cash or processing debit. But when fees are variable and it is prohibited to pass on this variable fee and prohibited to not accept specific visas then transparency and attacking the monopoly is good.
Hopefully sectors of business agree together to pass these fees onto consumers as a method of fighting back against the credit card companies.
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.
Who uses cheques anymore? Just pay using automatic withdrawal.
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