You're watching...
SmartCredit.com Consumer Education President John Ulzheimer and Pinnacle Capital Management’s Ryan Mack on the new transaction fee facing many credi...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We'll get all of that just a second but first our top story.
It's about the cost a whole lot more to use a credit card instead of cash a big settlement between retailers and credit card companies means stores.
We'll start charging you extract.
Every time you swipe your credit card.
And this all begins Sunday.
Up until now retailers -- that surcharge or swipe fee to the credit card companies directly but now stores would be allowed to pass the extra cost on deal.
Like -- tax.
Up to 4%.
Of the total cost of whatever your by.
With -- now John Alzheimer consumer education president for Smart credit dot com and Ryan Mack.
The president of optimum capital management great to have you both here John I'll start with you what do you make of this.
Yet this is really.
Essentially what's happened -- areas the feed that the merchant has to paid to it except the credit card which is commonly called swipe fee or interchange fee.
And the past they haven't been able to charge a line item actual cost to the consumer to cover that while starting -- Sunday they will be allowed to do so.
That's the bad news the worse news is is that -- forty -- in.
That -- and the price of the merchandise that you're buying -- now not only are -- able to charge a fee on top.
A four to forty purchasing but essentially you're paying -- the two times over and those of us were paying cash are really getting Sri because we're still paying that.
EU can't -- you can't get ahead on a -- show people some of the details here.
First of all Sunday stores have to inform customers and this is if you're an online merchant is well.
-- debit and prepaid cards are exempt.
And the top limit is 4% as we said in the open grinding you I can't imagine -- that this is a good time for Americans to facing yet another -- I mean again with -- with jobs that we are getting nickel and that the death a lot of consumer throughout they're just trying to live check to check let alone and that the problem battle goes on with this legislation is that.
I've -- to suggest an individual's use credit cards -- to establish credit to use in the go and you pay.
And after seven days pay off your bill missile wave -- -- in the credit now we have to pay another 4% just to do so.
I'm so what we're trying to say is we have to be educated we have to educate our sales we have to want to ask.
To see if they are charged an additional -- figure out whether it might be appropriately used car that particular store or start being mindful of different prices different there's a say if you're gonna -- -- -- I wanna stay away somewhere else door that's and that's charging -- go to one that does the -- at the end of the day.
Let's talk a little bit about ads lucky people out there -- about ten states where the surcharge is gonna be a Lago Texas New York.
California are the three of the biggest so that's good news there -- some folks out there.
But China -- yield looked -- to Ryan's point.
Credit cards I know their pain is as the worst possible product Deborah but the reality is consumers have certain protections when they use a credit card what are the.
Yet a fair credit billing act -- credit cards yet demonized completely -- corporate -- extremely unfair.
You have an amazing protections under the fair credit billing act when use a credit card primarily.
Fraud if I steal your car to.
And I use it without your permission your liability is capped at fifty box because of bad act and us credit card -- assures one even charges that because they want to keep you as a customer.
You can't say the same things about debit cards you can't say the same things about especially the -- though most of all -- the prepaid debit card.
It's a little -- what they're doing Jerry is there -- -- they're moving -- to checkmate.
Regardless of what -- we end up making whether it's prepaid debit debit or credit.
Or cash she then.
It's gonna end up costing us more their debts they're eliminating our -- don't worse that we can actually save money by choosing how we choose to pay for sale well put and -- I.
