Credit Card Merchant Fee Settlement - Surcharges?

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Hogwild
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Credit Card Merchant Fee Settlement - Surcharges?

Post by Hogwild » 14 Jun 2017 20:34

Hi friends:


What are the repercussions of this headline? Does this mean that my cards with cashback, points, etc. will now be charged a premium
at some point?

http://www.bnn.ca/stores-may-ask-custom ... t-1.779178

If not, what does it mean?

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IdOp
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Re: Credit Card Merchant Fee Settlement - Surcharges?

Post by IdOp » 14 Jun 2017 22:08

It's hard to be sure since I'm not an expert, the article gives only some general features of the new agreement, and it will be over 1.5 years until merchant decisions need to be finalized. But, to venture a guess it wouldn't surprise me if some merchants started to charge extra fees on cards with the highest surcharges. Presumably these are the cards with the biggest rewards. OTOH, rewards cards are very popular and merchants probably don't want to tick off vast numbers of people, so I'll guess they start by dipping their toes into the extra fee thing and gauge the reaction. Once people get used to it they may lower the bar and charge in more cases.

izzy
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Re: Credit Card Merchant Fee Settlement - Surcharges?

Post by izzy » 14 Jun 2017 22:32

I suspect we are more likely to see rewards more restricted to cards associated with the retailer as per Costco,Canadian Tire and Walmart etc all of whom issue their own name brand cards and sometimes give a greater reward if you use theirs!
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cedeebee
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Re: Credit Card Merchant Fee Settlement - Surcharges?

Post by cedeebee » 15 Jun 2017 10:10

The article left a lot to speculation...

Do the provinces named have the right to veto the settlement?

It states that smaller merchants may not be inclined to tack on a surcharge. I would have thought that larger retailers would be the ones to eat it, as it were, as they're generally in a better financial position to do so.

More reason to shop online from the US...

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Re: Credit Card Merchant Fee Settlement - Surcharges?

Post by kcowan » 15 Jun 2017 10:24

When they did the forced upgrade to premium cards I was in the business and talked to many merchants all of whom were against it. Their fee jumped from 1.8% to 3.5% an average. I considered it a side effect of our Canadian bank oligopoly.

Right now I always go for cash back to avoid the vortex.
For the fun of it...Keith

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