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SmartCredit.com Consumer Education President John Ulzheimer on retailers now being allowed to charge customers more to cover retailers’ swiping fees...
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Pay with a credit card may soon be a lot more expensive -- extra -- believe it or not that merchants currently pay to card issuers every time you swipe may soon be passed on -- -- the consumer and me.
First debit cards now credit cards -- -- -- is the president of consumer education for Smart credit dot com age I'm gonna CEO what in the heck is going on.
Here.
Yeah if it were gonna get -- that's out of the bottom line and basically what's gonna happen is merchants are going to be able to for the first time.
Even though a contract provision prevents them to they're going to be able to charge a little bit -- -- what you buy in order to cover.
The -- change for the -- white heated debate K.
To be -- MasterCard discover and Max content in order to cover their costs -- -- past they had been disallowed to do -- per the contract it signed.
What does credit card networks and it had to essentially absorbed -- -- feed themselves and what that is they essentially don't pack.
And on top of the price -- to barks advice of the service.
But now you may actually see a line item under -- voice that -- a dollar for the past four cents to cover the merchant charts -- our prices are likely going to go up because of.
Yes and the amount they're gonna go up is about 1% to 4%.
See you said a penny on -- dollar purchase that's what you're seeing right there you know look.
John you and I talk a lot about this I mean originally.
I -- will I swapped for my debit card to a credit card in my daily purchases because I wanted to avoid any debit card fees that might arise that there were threats -- that if you remember.
And now they're gonna boost the credit card fees there's no place to go except -- Cash.
Now your your stock to an end to end the problem is is that.
They're circling the wagons it seems like to -- transfer of money from the consumer to the merchant is big business.
And it's becoming bigger business and it's expensive to process credit cards that as a fact.
The problem is is that I would I would bet you.
A couple coffee.
It if you went out -- surveyed a thousand consumers not.
One of them would tell you that they know if -- -- a merchant or interchange -- so white -- -- now combined into the cost of whatever they're buying however now.
Now it is going to be overtly -- -- S.
That their prices gonna go up -- one to 4% it's basically.
What the retail -- pays in -- tech sector credit card depending on the size of the transaction.
How many transactions that you per month and which type of credit card they're taking so I would hope -- Crossing my fingers here that they're only going to charge us for what it's costing them not to accept the credit -- not.
-- a -- but a margin.
On top about how bad guys from now when now I'd like to see that our -- I have to say though Americans say that they would not pay more use a credit card 95% they say they would -- now.
But will people really notice.
I it's -- -- I love the results of that Wall Street Journal survey I just simply don't believe them.
Look we just went through one of the worst recessions than anybody living right now has ever gone through.
And we are back to using credit cards like crazy we -- -- our credit cards and stuff going up between one and 4%.
At the cost.
I don't think it's going to cause us to stop using our credit cards primarily because of the convenience the rewards.
If you -- -- in full each month are practically free to use.
And also the -- of the island really OS that protections that is the only way to it will.
Playing here it is -- pay it off each month and you get the benefits and you don't have to pay the penalties and now though they're gonna institute new penalties.
It's always the consumer who winds up paying for this stuff all right John -- -- -- I tonight appreciate your -- Thanks -- good.
