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The world's largest retailer calling for other retailers to band together against Visa and MasterCard Wal-Mart flat out rejecting.
A proposed multi million dollar settlement over swipe fees claiming the settlement does not fix a broken system here with what it means for you John Alzheimer.
President of consumer education for Smart credit dot com.
John great to see you I -- this settlement with a good thing for these people and now they're protesting at Y.
Yeah I think after we've had a chance to dig through the settlement language a little bit more we find that there really isn't any -- -- that current events.
The large credit card networks from increasing swipe fees over time which is problematic because while retailers -- -- technically.
The allow it to surcharge.
Merchandise and services to cover the costs of those he -- the higher they go the more that.
Targets and wal marts and the folks who are you know closer the margin and our discount stores are gonna have to increase prices that's not necessarily something.
But they're interested in doing what they really wanted to see ads as -- retail community.
What's not only lower swipe fees but also -- cap on like these and I just couldn't be increased in the future to cover the billions and billions of dollars and this is gonna end -- -- costing -- -- MasterCard.
So is this a victory for retailers -- -- I mean and I'm completely lost.
While I hit a here's what we stand OK it's it's no one is no one has -- -- yes.
The consumer is still in this consumers still kind of caught in the middle we haven't won we have not lost.
Condit DE group of Playtex has certainly hasn't won because settlement hasn't been approved.
And retailers looks like that may or may not get as good of a deal as they initially have thought that they were gonna get and who really is -- -- is the law firm represented plants because they're not going to be -- o'clock -- Hundreds of million dollars in -- just yeah.
My heart goes doubt come on now using and -- -- we need a bail out maybe there's a bailout for liars.
-- it here's what I think I think the consumers' are gonna end up paying for this because guess what.
Those fees are gonna come out of our pockets -- -- -- Bump up the price of everything that we buy -- that we end up paying for -- it's another outrage for consumers at the end of the day isn't it John.
-- you you know you -- an -- headed -- we're gonna -- -- he -- surrendered to -- to put it frankly.
We we're not asking for best did -- -- these very very clear about swipe fees which is also called interchange fees consumer groups or not out there outraged.
You're calling our politicians raising hat.
Eight you know occupying Wall Street -- -- not asking for a cap on swipe fees or anything to do what swipe fees we had nothing to do what that why.
What what's gonna end up happening is the so why he won't likely don't off over time if this settlement is approved -- the area as we know we talk about -- almost every week.
The consumer and end up having to bear the cost of the increase -- means that our price of goods is gonna go up.
What I'm starting to see here in New York are signs that some retailers that say if you pay with a credit card you've got to have a minimum purchase do you think this is a response to that's.
Yeah I can't -- and that's standing eight it's pretty common phenomenon but it has increased -- its frequency lightly basically what they want is they want to buy something.
Expensive enough or not stop so they have enough margin to cover the cost comfortably all of their -- that's why it's.
On -- likely that a retailer would appreciate if you went and I bought us a pack of gone with your credit card because our supply gonna lose money on that transaction -- -- at least ten box or fifteen -- -- -- at least cover their cost you're probably gonna start seeing some more that you probably also start seeing what I called variable pricing.
Based on Palin -- meeting that it keep paper credit card your cost is acts if you pay with a debit card or cash your cost is X minus something because a -- Expensive.
-- -- -- or you because -- -- preview what's happened to consumers here.
I got up debit cards because I was afraid I was gonna have to pay debit card fees I got on the credit cards because I -- You know pay it off every month be in good standing in earned some points.
Now I'm gonna have an extra fee for using my credit card we have to default to cash don't we I mean -- the only thing that's gonna make sense with -- this ridiculous cents.
May be there are large retailers who have come -- had sad it.
We will not increase our cost because of this settlement period and I -- you never know that's actually true or that -- will hold short time.
But what you don't wanna DG don't wanna put our retail like Home Depot or Wal-Mart -- target our cost our lows or whomever our.
In a position where they have to make that difficult decision between -- customer and there.
Their financial health.
I would -- those retailers who put him on the show up.
John thanks for coming on tonight it's always great to have you here.
You -- very nice to -- thank you.