Just curious what people’s takes on it are?
I don’t think it will result in any savings for consumers. That 2-3% will drop into the merchants’ pockets. Durbin is retiring. Does he think this is for his legacy? I expect Costco will raise hell about it. I am prejudiced, however, because we get $700-$1K most years in rewards from our assorted cards.
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I got over $2000 from our cards last year.
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Yes this would cut that substantially
Accepting credit cards is a cost of doing business, restaurants and stores can choose to only accept cash. I remember when a lot of businesses didn’t accept American Express because they had higher credit card fees, it was their choice.
This morning I read a post on a Facebook foodie group, the guy ordered a pizza online for pickup and there was a 99 cent service fee for ordering online and $1.20 fee for carry out packaging. It also defaulted to an 18% tip, on a pickup! IMO businesses should just include all the costs and fees into the price of what they’re selling.
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I’d have to read up more, with a better article, to have an informed opinion. If the end result of the bill is more competition for transaction fees, and likely lower fees, I’d be supportive, even if it reduces my credit card rewards.
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Interesting take.
Do you think businesses will pass the savings on to the customer or just add it to their bottom line? Maybe credit card companies can lower transaction fees and make up the difference by increasing interest rates, late fees and over the limit fees to keep the rewards for responsible card holders. I’d be fine with that.
What’s the problem with that? Businesses SHOULD BE more profitable. Sounds like there needs to be more competition overall
Which would also increase default risk
should we do what we did with student loans and just get rid of bankruptcy altogether, assuming it wasn’t for medical or something not due to irresponsibility? Should we consider all irresponsibility theft?
I agree, and that should include credit card companies. One way credit card companies compete now is by offering rewards and perks to their customers.
Not necessarily, credit card companies can just be more selective of who they offer credit to.
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I’d love to see a fifth or sixth CC issuer besides Discover, VISA, AMEX, or Mastercard - reduce the barriers to entry
I agree there should be more competition. A company can offer lower transaction fees to businesses, but how do you get customers to use that card? I’m happy with my Costco Citi Visa, I’d be willing to switch to another card that offers me something better, but haven’t found one yet.
Rewards. That’s how they get people to use them
I meant how do you get customers to use a new low transaction fee credit card that would lower costs to businesses. If a credit card company offered lower transaction fees how would they be able to pay for the rewards?
Volume and picking only the least risky customers
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That would do it, but much easier said than done.
Here you go (I presume this is the bill being considered):
and a better discussion:
Meant to add that the bill does NOT require that rebate programs be reduced or eliminated. That is a presumption based on the fact that processing fees would be reduced and more than one processor could be involved, thereby reducing the incentive to use one card over another due to rebates.
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