Rewards Credit Cards May Not Be Used At All Stores

[SandyinMonterey]

Anyone else see/hear the story on NBC Nightly News with Lester Holt last night? It said some retailers like Amazon, Target, & Home Depot does not want to accept credit cards with rewards programs because of high sweep fees. That stinks.

 

[DLgal]

Anyone else see/hear the story on NBC Nightly News with Lester Holt last night? It said some retailers like Amazon, Target, & Home Depot does not want to accept credit cards with rewards programs because of high sweep fees. That stinks.

Well, they might not like it, but I don't think the major card companies will allow them to discriminate among the brands. If a store agrees to accept Visa, they need to take ALL visas. If these retailers stop accepting major credit cards, they will lose a TON of business.

 

[SL6827]

Well, they might not like it, but I don't think the major card companies will allow them to discriminate among the brands. If a store agrees to accept Visa, they need to take ALL visas. If these retailers stop accepting major credit cards, they will lose a TON of business.

That makes sense. But it seems like I did see a story the other day about some retailers that were going to stop taking Visa credit cards or just Visa all together.

 

[DLgal]

That makes sense. But it seems like I did see a story the other day about some retailers that were going to stop taking Visa credit cards or just Visa all together.

Well, MasterCard and Amex have plenty of rewards cards too. I think it's unavoidable, regardless of which card company you are talking about.

 

[DLgal]

That makes sense. But it seems like I did see a story the other day about some retailers that were going to stop taking Visa credit cards or just Visa all together.

The only news story to that effect that I could find is that Kroger stores have stopped accepting Visa cards.

 

[SL6827]

The only news story to that effect that I could find is that Kroger stores have stopped accepting Visa cards.

That was it. But from what I read, the stores are really the ones having to pay for the rewards on the cards because of the high swipe fees? Basically, passing it down to the consumer?

 

[kydisneyfans]

The only news story to that effect that I could find is that Kroger stores have stopped accepting Visa cards.

Kroger has not stopped taking Visa cards.

 

[Mackenzie Click-Mickelson]

Kroger has not stopped taking Visa cards.

Well not exactly Kroger.

Appearantly it pertains to Foods Co, which is a subsidiary of Kroger, and it's only ones in California.

There was/is concern about that extending outwards but at least right now it's fine.

The overall reaching issue is disputes between the CC company, in this case Visa, and the retailer. Costco, for instance, had a long-standing agreement with Amex for a branded Costco card and customers who didn't have a Costco branded one but still had Amex. Amex was the only CC allowed to be used at Costco; otherwise you could still use other companies but it had to be via Debit. Then...the renewal failed and Amex was out but Visa was in so now you can use Visa CC.

Reward cards are just a new variation into the long-standing battle over fees CC companies charge retailers.

 

[gottalovepluto]

Kroger has not stopped taking Visa cards.

Foods Co in NorCal or something did as Kroger negotiates their costs for Visa processing.

 

[LYSE]

They are trying to change the rules...they will likely fail.

 

[ibob52]

Anyone else see/hear the story on NBC Nightly News with Lester Holt last night

I did see the segment on NBC Nightly News with Lester Holt (Wednesday Oct 3rd)

My impression when I was watching it was "yeah right"

This is the gist of it . . .

 

[verleniahall]

My question is how would they know if it was a ‘rewards’ cc or not?

PLUS - a lot of Banks’s are offering rewards for using your debut card - so aren’t they also going to restrict debit cards?

 

[Disneefun]

I think what the major retailers (or at least a few of them) want out of this, really, is to force you into getting "their" cards. Target has one, Amazon has one, Walmart has one, etc. Home Depot and Lowes have store cards, as do most of the big clothing stores like Kohls, Macys, etc. Just about every retailer has a card of some sort.

They want you to use the one they have a "deal" with. The problem is, getting all those cards will fry your credit and expose you to more potential fraud, not to mention who wants to carry that much plastic?

 

[LYSE]

My question is how would they know if it was a ‘rewards’ cc or not?

PLUS - a lot of Banks’s are offering rewards for using your debut card - so aren’t they also going to restrict debit cards?

My guess is it would just be more specific, for example there is Visa then Visa Signature...signature are the good rewards cards.
There is Mastercard and Mastercard platinum as well.

 

[verleniahall]

My guess is it would just be more specific, for example there is Visa then Visa Signature...signature are the good rewards cards.
There is Mastercard and Mastercard platinum as well.

That would be the only way I could see

 

[tasha99]

I shop at a store (Winco) that only takes checks, cash, or debit cards to cut their costs. Grocery store margins are very low, so they just don't do credit. It's worth it to me to deal with the inconvenience because they have the best prices.

But. . . I use rewards cards and love getting free air and hotels. I think having a regular store not take my card would make me switch stores.

 

[cmorrison87]

Seems highly unlikely that stores would be able to discriminate against accepting rewards cards vs regular cards -- any what cards don't have any kind of reward associated with them anymore? Also, how can you tell online if the card is a rewards card or not for online purchases?

 

[MomToOne]

Appearantly it pertains to Foods Co, which is a subsidiary of Kroger, and it's only ones in California.

I can confirm FoodsCo has stopped accepting Visa, both at their grocery and their gas station. I do almost all my grocery shopping there, and usually get my gas there too. I tried a Visa card by accident the first week after they made the change, and it was not accepted.

FoodsCo is definitely a Kroger subsidiary. I suspect that this is a test to see how it flies before trying to roll it out wider. Although FoodsCo is something between a normal Kroger store and a more warehouse-type grocery store, so maybe they just needed to keep the swipe fees down due to their lower margin at FoodsCo.

The store and gas station seem just as crowded as before, and no one seems to be having a fit over having to use cash or a Mastercard, Discover or AmEx instead of a Visa.

Personally, once I found out they would no longer be accepting Visa, I just got a Mastercard that gives me the same 3% back on gas I was getting on the Visa I usually used, and an AmEx that gives me the 3% back on groceries that that same Visa would give me.

 

[georgina]

I can confirm FoodsCo has stopped accepting Visa, both at their grocery and their gas station. I do almost all my grocery shopping there, and usually get my gas there too. I tried a Visa card by accident the first week after they made the change, and it was not accepted.

The store and gas station seem just as crowded as before, and no one seems to be having a fit over having to use cash or a Mastercard, Discover or AmEx instead of a Visa.

Personally, once I found out they would no longer be accepting Visa, I just got a Mastercard that gives me the same 3% back on gas I was getting on the Visa I usually used, and an AmEx that gives me the 3% back on groceries that that same Visa would give me.

They accept AmEx but not Visa? I thought AmEx had the highest merchant fees?

 

[amcnj]

They accept AmEx but not Visa? I thought AmEx had the highest merchant fees?

Maybe amex is making favorable deals to make up for losing Costco?