Welcome Back, MINIMUM PURCHASE signs for Credit Card Usage!!

[guyver01]

With passage of finance reform bill (also known as the Wall Street Reform and Consumer Protection Act) having this included in it: "Retailers can apply minimum dollar amounts (no greater than $10.00) for credit card usage."

This now means that retailers can set minimum of $10.00 in order to use credit cards!


http://en.wikipedia.org/wiki/Wall_Street_Reform_and_Consumer_Protection_Act

The "Durbin Amendment" is an an additional provision in the final bill aimed at debit card interchange fees and increasing competition in payment processing. The provision was not in the House bill; it began as an amendment to the Senate bill from Dick Durbin and led to a "lobbying frenzy" against it. The law applies to card issues with over $10 billion in assets, and these issuers would have to charge debit card swipe fees that "reasonable and proportional to the actual cost" of processing the transaction. In addition the bill aimed to restrict anti-competitive practices and encourage competition, and included provisions which allow retailers to refuse to use cards for small purchases and offer incentives for using cash or another type of card.

Statement from Mr. Dick Durbin:
http://durbin.senate.gov/showRelease.cfm?releaseId=324958
The Durbin amendment also prevents card networks like Visa and MasterCard from penalizing sellers for offering discounts to customers. The amendment would allow sellers to offer discounts for customers to use competing card networks and for customers to pay by cash, check or debit card. The amendment would also allow sellers to choose to decline credit cards for small dollar purchases (because interchange fees often exceed profits on such sales.



so... what does OT think about this?

 

[Mike Gayner]

I don't really see this as a problem.

 

[deadlyapp]

This is fucking bullshit.

I guess I'll get more detailed.

I use my debit card for day to day purchases, I never carry cash. I already avoid people who make me pay to use my card, IE Arco Gas, small coffee places, etc etc.

I'm not going to start carrying around cash just to cater to these stupid fucking places.

 

[guyver01]

I don't really see this as a problem.

i honestly dont, either.

 

[QueBert]

this is awesome, where I use to work people would want to charge $2 worth of shit. And after the CC charge for us we'd end up losing money on the sale. Minimums are needed and should have been in place for a long time now, it's about damn time.

 

[Colt45]

I use my debit card for day to day purchases, I never carry cash.

debit != credit, though... this is about CCs...

cash for myself.

 

[guyver01]

debit != credit, though... this is about CCs...

cash for myself.

but one of the provisions does affect Debit Cards.

these issuers would have to charge debit card swipe fees that "reasonable and proportional to the actual cost" of processing the transaction

 

[PieIsAwesome]

Meh, doesn't seem to change anything for me. If I go through the trouble of driving somewhere to buy something, its not going to be for something less than $10. It might be a problem if I go buy fast food or something while I am out, but I don't expect the minimum purchase requirement to be common there.

 

[ShawnD1]

They can set the payment rules any way they want. I could sell a refrigerator in exchange for chicken nuggets if i really wanted

 

[Aikouka]

I assume the debit portion is referring to the fees that some banks or credit unions charge their people for using their debit card. I know with my credit union, I get charged 25 cents (per transaction) after the 5th transaction during a month (resets every month, obviously). Maybe that will reduce my fee?

 

[Cogman]

but one of the provisions does affect Debit Cards.

these issuers would have to charge debit card swipe fees that "reasonable and proportional to the actual cost" of processing the transaction

Humm, that might hurt a bit. Looks like I'm going to be using more cash and checks from now on.

 

[lupi]

this is awesome, where I use to work people would want to charge $2 worth of shit. And after the CC charge for us we'd end up losing money on the sale. Minimums are needed and should have been in place for a long time now, it's about damn time.

yeah, cause god forbid they look at the real problem with those things.

 

[rcpratt]

If I have to start paying for my lunch with cash every day I will stab somebody.

I'm pretty sure our cafeteria won't do that, though.

 

[deadlyapp]

Humm, that might hurt a bit. Looks like I'm going to be using more cash and checks from now on.

Exactly. I hate carrying cash, it takes up room, opens me up to theft much easier, and just in general is more of a pain in the ass.

And I know retailers hate checks, why they would want to go the opposite direction that they've been going all these years is beyond me.

 

[ShawnD1]

Humm, that might hurt a bit. Looks like I'm going to be using more cash and checks from now on.

The stupid part is that handling physical money is just as expensive as the card fees. Do you know how much its costs for a brinks truck to come to your bhusiness? Holy shit man, lots. If anything, they should give a cc discount when spending large amounts.

 

[NFS4]

I never carry cash. I use my debit/credit card for convenience. The only time I use cash is when I pay my barber.

If an establishment wants to set a $10 minimum, I'll just take my business elsewhere.

 

[josh0099]

The stupid part is that handling physical money is just as expensive as the card fees. Do you know how much its costs for a brinks truck to come to your bhusiness? Holy shit man, lots. If anything, they should give a cc discount when spending large amounts.

Let alone the liability of having a lot of cash on site...before the truck gets there...

 

[blurredvision]

I never carry cash. I use my debit/credit card for convenience. The only time I use cash is when I pay my barber.

If an establishment wants to set a $10 minimum, I'll just take my business elsewhere.

My exact thoughts, except I cut my own hair. If I go into a store and they are charging a fee to swipe for my $4 meal, then I'll pay that time and note to never come back.

 

[manimal]

From the retailers perspective depending on the state they pay a percentage of the transaction. Most retailers in recent years were making enough margin to swallow the cost. Soon they will not.

Why do you think frys, Bestbuy, HHgregg, sears, etc want you to get a card from them? Sure it gives you buying power and impulse purchase options but it also means they dont have to pay for that transaction.

 

[erikistired]

I never carry cash. I use my debit/credit card for convenience. The only time I use cash is when I pay my barber.

If an establishment wants to set a $10 minimum, I'll just take my business elsewhere.

this. i hate carrying cash. and i especially hate carrying coins. there is a gas station i used to stop in to get a bottle of water after working out that put up a minimum purchase sign. i just go somewhere else now.

if the fee from the card company exceeds the purchase, perhaps the problem is the fee, not the person trying to spend money in your store.

 

[Brainonska511]

Is it so hard to keep a $20 in your wallet?

 

[josh0099]

From the retailers perspective depending on the state they pay a percentage of the transaction. Most retailers in recent years were making enough margin to swallow the cost. Soon they will not.

Why do you think frys, Bestbuy, HHgregg, sears, etc want you to get a card from them? Sure it gives you buying power and impulse purchase options but it also means they dont have to pay for that transaction.

Except I bet they still pay a percentage probably smaller, but they don't handle the transcation totally...Amex/Visa/Mastercard still does...

 

[Cogman]

The stupid part is that handling physical money is just as expensive as the card fees. Do you know how much its costs for a brinks truck to come to your bhusiness? Holy shit man, lots. If anything, they should give a cc discount when spending large amounts.

Yep, it is just another way visa can charge a tax on banks to use their system. Something that is totally electronic and basically free. But, if they insist on making it more expensive to use the cheap route, I'm greedy enough to save $1 per transaction and make them spend $10 instead by using cash/checks.

It would be really nice if visa lowered their transaction fees. But alas, they are entrenched now, nothing short of legislation will make our lives more easy. Plastic cards, it was fun while it lasted.

 

[Cogman]

Is it so hard to keep a $20 in your wallet?

$20? Try $100-$200. With a charge on debit transactions, that will seriously limit the amount I'm willing to spend with a debit card. Gas stations, groceries, ect.

 

[ShawnD1]

My exact thoughts, except I cut my own hair. If I go into a store and they are charging a fee to swipe for my $4 meal, then I'll pay that time and note to never come back.

I never eat at tim hortons because they dont take cc. Mcdonalds will take cc when buying just coffee, so thats where i get coffee at 3am.