Credit? Debit? The Difference May Cost You

[One Sweet World]

California won't step in this fight between a gas station owner and Visa. Visa is taking advantage of its monopoly on the credit card industry to make it very difficult for retailers to charge a separate price for those consumers who pay using a credit card and those using a debit card/cash.

The state’s posture leaves marketers in a Catch 22 situation. If they use the word ‘credit,’ Visa has said it may fine them and strip them of their right to take Visa cards. But if they adopt some of Visa’s suggestions, such as leaving the ‘credit’ sign blank, they will be violating state standards, says Johannes.

Johannes believes that Visa is being “a little heavy-handed” on the issue. “They probably don’t want dual pricing because it discourages the use of their credit card,” he says. His only suggestion for marketers is that they seek a legislative change that will specifically require the use of the word ‘credit’ on signage.

http://creditcardsvsmerchants.blogspot.com/

[Cleita]

1. My bank dropped Visa on their debit/ATM cards in favor of

MasterCard. They never explained why, but it could be because of Visas tactics.

[Double T]

2. Probably. I had a debit Mastercard with no fee. Bank was bought out by.....

another bank that had debit VisaCard with fee. Debit VisaCard and New Bank are a bunch of fee hungry crooks.

[SammyWinstonJack]

6. I have a debit Mastercard with fees through my credit union. If I use another bank ATM I get

charged twice. :banghead: My credit union has limited ATMs in my area. One at the bank and one in a strip mall. Not very convenient, at all. They also charge me a checking account fee and an online banking fee, $12/mo. I don't even use checks anymore and I only deposit payroll checks once a mo. :banghead: I've been a member for 8 years and have a balance of approx. $20,000/mo. I think I am getting screwed! :rofl:

[ananda]

4. hmm

I have debit Mastercard with no fee, given
by my bank on my checking acct. It used
to be Visa, but they changed it a few months
ago.

Hope it stays that way.. no fee I mean.

[Nicole]

5. Mine did as well.

I was told it was due to unfavorable contract terms.

A friend told me that so it's not an official statement from the bank. Sounds about right to me though.

[Captain Angry]

3. That's the whole reason I use my credit card everywhere.

If I can't have a cash discount, then I'm not giving them the 2-4% profit from the credit transaction that I didn't use.

I pay the card off, and get cash back, so there's even bigger bonuses for me. But if I could save by using cash, I would use it.

[One Sweet World]

7. Sure,

the credit card companies should be allowed to offer cash back programs, etc but it is unfair they are allowed to make it so difficult for stores to offer a separate price for cash payers.

Also, every time you use your credit card, the card issuer, whoever it is, gets a big fee. The retailer pays it directly but we all pay for it indirectly in the form of higher prices.