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Thread: credit card processing "fees"

  1. #1
    MGF Master Grumble Framer
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    Default credit card processing "fees"

    I recently received a notice from my card processing company (Merchant Warehouse) that Visa and Mastercard have/will be implementing these "fees". The nice people at MW explained that Visa and Mastercard doesn't give a detailed explanation of what the fees are. MW says they reprint verbatim the information Visa and Mastercard sends them on the monthly statement

    I was wondering if everyone else has been paying/is going to be paying:

    Visa and Mastercard Kilobyte fee (effective Aug. 1, 2013)
    Visa bin fee (effective July, 2012)
    Mastercard ICA fee (effective July, 2012)
    Annual Acquirer License fee (effective July, 2012)

    and if anyone has an understanding of what the fees are and why they are necessary?

    Seems to me if we are all paying "fees" that can't be explained, perhaps we should be charging Visa/Mastercard/Discover/American Express an "accommodation" fee for allowing their cards to be processed through our stores. (green ink!)

    Perhaps we could call it the "sunshine" fee - or maybe the "smile" fee. (green ink!)

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  • #2
    SPFG Supreme Picture Framer God Rick Granick's Avatar
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    Default Re: credit card processing "fees"

    ...perhaps we should be charging Visa/Mastercard/Discover/American Express an "accommodation" fee for allowing their cards to be processed through our stores
    Boy wouldn't that be great. Like grocers charging their food vendors for "shelf placement".
    Rick

  • #3
    SPFG Supreme Picture Framer God Ylva's Avatar
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    Default Re: credit card processing "fees"

    I have been trying to make sense of those fees forever, and have given up. I still look to see if all looks 'normal' but I don't understand the fees anymore. I make sure to put it in as cost of doing business.

    I like the idea of charging a 'shelf fee'...where do I sign up???

  • #4
    SGF Supreme Grumble Framer MnSue's Avatar
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    Default Re: credit card processing "fees"

    I wonder what a call to the State's Attny General would say...especially if you can not receive any information on what the fees are for?


    "consumers need to know" or so "they"tell us!
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  • #5
    SGF Supreme Grumble Framer nikfrz's Avatar
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    Default Re: credit card processing "fees"

    Somehow I think that this is a backlash to the Durbin Agreement. When banks lose revenue from one source, they create another source of revenue.
    "CHIEF ASSISTANT TO THE ASSISTANT CHIEF"

  • #6
    SGF Supreme Grumble Framer Puppiesonacid's Avatar
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    Default Re: credit card processing "fees"

    Quote Originally Posted by nikfrz View Post
    Somehow I think that this is a backlash to the Durbin Agreement. When banks lose revenue from one source, they create another source of revenue.
    sometimes from tax payers....

  • #7
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    Default Re: credit card processing "fees"

    Well, I do admit to being dimwitted.

    I was told the wording about the fees on the statement is verbatim from Visa and Mastercard. Every credit card processing company has to charge these fees. Visa and Mastercard have levied them, not the processing companies.

    You know how us dimwitted are - we just don't get it on the first go round.

    Since Visa and Mastercard are assessing these fees and the language for describing said fees is provided through Visa and Mastercard, every service account should have the same fees listed using the same language, regardless of the processing company.

    Surely other grumblers have noticed these fees on their statements and have gotten explanations for them?

    I sure would like to know what those fees are for!

    I like the idea of contacting the AG office in the state where my processor is located. A call to Visa and Mastercard would seem to be in order, too, since they are the instigators of the fees.

    As Sue wrote "consumers need to know!"

    Even the dimwitted ones.

  • #8
    SPFG Supreme Picture Framer God prospero's Avatar
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    Default Re: credit card processing "fees"

    I think the market is so competitive that processors have cut the basic charges to the bone in order to attract/poach customers. So they have devised a few left-handed avenues to claw some of it back. They don't exactly go out of their way to make sure the customer is aware of these. All in the terms and conditions which can be found in a locked toilet in a disused basement with a sign on the door saying......
    "Beware of the Leopard".
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  • #9
    SGF Supreme Grumble Framer tedh's Avatar
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    Default Re: credit card processing "fees"

    The market may be competitive to you, but in Canada there is no competition. Six major banks with the same fee schedule across the board. The fees are high, they represent a major cost to businesses, and these banks have the politicians in their pockets. The profits taken out of the economy are staggering - billions of dollars each quarter.

    One small business I know has decided to fight back. A local glass company takes only cash and cheques, and has had three bad cheques in ten years. No VISA MC or debit. The cost of those bad cheques is offset by massive savings in fees. Wish I could do the same.
    My hovercraft is full of anguish.

  • #10
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    Default Re: credit card processing "fees"

    Interestingly, there was a decision just this morning about these fees by the Competition Tribunal in Canada. The decision was that the card companies don't have to change (sorry if the link is overly long):

    http://www.theglobeandmail.com/repor...ticle13359707/

    I would like to know if businesses can offer discounts to customers who pay with cash, cheque or debit. That at least more fairly charges those who seek to benefit from premium cards, and lets people know that businesses do pay more when they do. It's a cost of doing business and should be passed on to the consumer - but fairly.
    Nature offers neither rewards nor punishments - only consequences.

  • #11
    SGF Supreme Grumble Framer tedh's Avatar
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    Default Re: credit card processing "fees"

    Once again we get screwed by the banks and the government. The only thing we can do is offer discounts for cash. The Competition Bureau, who also decided not to investigate Michael's perpetual sales, has failed us again. The banks and Bell Canada run this country.
    My hovercraft is full of anguish.

  • #12
    SPFG Supreme Picture Framer God Jeff Rodier's Avatar
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    Default Re: credit card processing "fees"

    Quote Originally Posted by tedh View Post
    - billions of dollars each quarter.
    They find that much loose change in the seat cushions of the U.S. Congress every week.
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  • #13
    SGF Supreme Grumble Framer Rebecca's Avatar
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    Default Re: credit card processing "fees"

    Gas stations in NJ, on the NY/Jersey border have two prices - one for cash, one for cc. I suppose you could try it but gas is one of those must have things, might not work for picture framing. Most businesses just up the cost across the board.

    I'm very low volume, so with the last cc/business account hike I switched to paypal when checks are a problem, which is probably too costly for you all, but works for me.
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  • #14
    SPFG Supreme Picture Framer God Rick Granick's Avatar
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    Default Re: credit card processing "fees"

    Quote Originally Posted by Jeff Rodier View Post
    They find that much loose change in the seat cushions of the U.S. Congress every week.
    That's for sure.
    Rick

    (I think it tumbles out of the sacks as the lobbyists are handing them out.)

  • #15
    CGF, Certified Grumble Framer pete plastic's Avatar
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    Default Re: credit card processing "fees"

    We should charge a "fee" fee; a fee for the time it takes to make sense of all their fee assessments.
    "Until lions get their historians, hunters will always be the heroes." --African proverb

  • #16
    SGF Supreme Grumble Framer tedh's Avatar
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    Default Re: credit card processing "fees"

    When the dust settles, and I can understand fully the decision, and when I get the banks to explain every charge, then I'm going to write it all up, frame it, and hang it at the cash. Transparency and full disclosure.

    Which is more than the GD Competition Tribunal up here - the morons that decided in favor of the banks, and who will not publish their decision until they write up a censored "public" version.

    So in the past eight years, our electricity rates have doubled, our sales taxes have increased in some areas by 8%, our government has let Michaels go unpunished, and has given the banks everything they asked for.

    Get this - both liberal and conservative governments are guilty. They're all rotten.
    My hovercraft is full of anguish.

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