New charges for small credit card purchases?

[mikelan6]

Do you charge everything on your credit card like I do to get those magical Disney reward points?

I just read this ...

The new financial reform law was just approved by Congress which is allowing stores and restaurants to decline credit card usage for smaller purchases of ten dollars or less or to charge fees to the customer for using their cards. Up to this point, establishments were prohibited by law from doing this and they were required to take credit card payments no matter what the price of the purchase was.

http://www.huliq.com/10017/soon-credit-cards-will-be-useless-small-purchases

 

[wdwscout]

I use my USAir debit card for everything- and I believe debit cards are exempt from this- as they are more like cash.

I'd prefer if they just gave a "discount" equal to their cc fee to those of us not using a credit card- rather than adding additional fees for credit card use. But I doubt that will happen...

 

[kaligal]

I use my USAir debit card for everything- and I believe debit cards are exempt from this- as they are more like cash.

I'd prefer if they just gave a "discount" equal to their cc fee to those of us not using a credit card- rather than adding additional fees for credit card use. But I doubt that will happen...

Giving a discount to those who paid cash was considered the same thing (for obvious reasons) as charging more to those who paid with credit cards. For that reason, it was not allowed.

Although I think this should have been settled between the stores and the credit people...I'm not totally sorry about it. There are drawbacks, obviously, and not just the, "I want a pack of gum and can't use my credit card!" variety. But it isn't all bad.

 

[Madi100]

I use my USAir debit card for everything- and I believe debit cards are exempt from this- as they are more like cash.

I'd prefer if they just gave a "discount" equal to their cc fee to those of us not using a credit card- rather than adding additional fees for credit card use. But I doubt that will happen...

They are charged for debit cards also, but it is a much smaller percentage. We use our credit card everywhere, too. But, DH won't let me use it at his store. He pays more. I can't believe the businesses who automatically run my debit as a credit. Higher fee.

 

[*NikkiBell*]

I use my debit card for everything so I'm hoping they don't start charging a fee for it. I've also heard it works as cash and fees would not apply to it.

After getting my Dooney bag for free (using rewards points), I've been thinking about using my card more often. I'm curious to see what Visa winds up doing with this now.

 

[sjsjbrook]

Here in Ontario there are some places that charge a fee if you use your debit card for purchases under $5, but none for credit cards. There is always a sign so you know in advance and usually I just buy something extra to avoid the charge.

 

[mainegal]

Do you charge everything on your credit card like I do to get those magical Disney reward points?

I just read this ...



http://www.huliq.com/10017/soon-credit-cards-will-be-useless-small-purchases

I heard something about this. I think it also gives "permission" for the business to give a discount if the person pays with cash instead of credit card.

My dentist gives a 5% discount if I pay with cash or check instead of using credit card when he does repairs. No discount when the hygienist cleans

 

[Bell30012]

Many banks try to encourage more use of your debit cards for purchases. Since I almost never carry cash I love the convenience of the Master Card debit. However, if they start charging me a fee I'll be switching back to cash quick.

 

[txvjc]

Remember any fees would be charged by the place you are using your card and would have to tell you before they charged you the fee...not the issuing bank...the banks want you to use your card as much as possible because of the fees they charge the merchants...that's why cc issuers and banks cards can offer bonus programs (like miles and Disney rewards) because even after they "reward" you, they are still raking it in off the fees charged to the business that swiped the card. Most banks want you to pick credit, not debit, when given the choice if using your check card...you usally won't earn any points if you type in your pin

 

[SamSam]

I for one am sorry to see this, as we use our credit card for everything except 2 monthly bills that charge a fee for using a credit card. Our gas company and electric company both charge a service fee for using a charge card.


I love having my disney reward card to pay for things on our trips to the World!

 

[kpadalik]

We use our bank card for everything, but as a credit. We get points for using it as a credit and redeem those points for free hotel stays at Disney. We can get about 3 free nights a year this way. For big purchases we use our Disney Visa and get around $100+ a year this way. Our bank just merged with another one and now they are charging 25cents for every debit purchase. Good thing we don't use debit!

 

[GAN]

I never quite understood the advantage of a debit card anyway. Everything I buy goes on my CC, then I pay it off at the end of the following month. At the same time earning points or Disney dollars. Why have money pulled from you on the spot when you could hold onto it for an additional month? If they want to charge a fee for purchases under $10, I can understand that -the business has to pay a fee and such small purchases probably end up costing them. I know plenty of people that love the debit card but I just never saw the benefits -and I still don't.

 

[MMS1125]

I never quite understood the advantage of a debit card anyway. Everything I buy goes on my CC, then I pay it off at the end of the following month. At the same time earning points or Disney dollars. Why have money pulled from you on the spot when you could hold onto it for an additional month? If they want to charge a fee for purchases under $10, I can understand that -the business has to pay a fee and such small purchases probably end up costing them. I know plenty of people that love the debit card but I just never saw the benefits -and I still don't.

I <3 my debit card..no different than paying cash and it sure is a lot more convenient (I do have it run as credit though for bank rewards purposes). Not every credit card holder is disciplined like you and will not pay it off each month. If it's not paid off you incur the interest and end up paying 3 times what you would have paid just using a debit card or cash.

I can understand a business charging a fee for debit or credit since they will lose $$ on lower purchases. Most places around here have a sign you can't use credit/debit under $5 or something posted.

 

[irishdadx4]

well....this will save me money...since it will stop me from making alot of purchaces. So I'm going to think of that as a positive.

Mike

 

[Ava]

I for one am sorry to see this, as we use our credit card for everything except 2 monthly bills that charge a fee for using a credit card. Our gas company and electric company both charge a service fee for using a charge card.

Same here. The only things I don't pay for with my CC are my rent, electric, & gas. I wish I could pay the rent by CC, I'd rack up some major points!

I definitely would never pay a fee to use a CC, it defeats the purpose. I'll just have to start carrying a small amount of cash around with me if/when this law comes to pass.

I wonder if this will apply to Flex Spending cards as well. I have a card attached to my Medical Flex Spending account that is a MasterCard; when I use it, it's run through exactly like any other CC. No way am I paying a fee to purchase a $7.00 prescription. Guess it will be back to the days of saving receipts & sending them in to get reimbursed by check.

 

[wishspirit]

This is a common occurrence in the UK for smaller shops, as it costs the company to put the transaction through.

However this is only for purchases under $10 (or usually £5 or £10 in the UK), so most purchases wouldn't be effected, and just means you need to try and remember to keep $10 in cash on you, just in case!