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It is rather about which party is going to get their "cut" of the payment action. I doubt Walmart's prices go down by 2.7% if they were to renegotiate credit ca

by cmurf 10y ago

It is rather about which party is going to get their "cut" of the payment action. I doubt Walmart's prices go down by 2.7% if they were to renegotiate credit card fees to be the same as debit card fees. But regardless I think the crying foul is overall better because people should know that credit card fees are excessive, and maybe they should pay more attention. I'd prefer it if merchants could and would line item the exact fee for my specific card for this specific transation, as a line item, just like sales tax.

sandworm101 10y ago
As a selfish consumer, I really couldn't care less who gets what share. I only care about the price. How walmart arrives at that price is their problem. Should it be higher than elsewhere, I'll go elsewhere. What we are seeing is a p_ssing contest between two big hitters that has spilled out of the boardrooms. These negotiations happen every day without us hearing a peep. Perhaps I'd be mildly interested if this was a spat between walmart and farmers or some a sympathy-worthy small business, but this is Visa.
notatoad 10y ago
>I'd prefer it if merchants could and would line item the exact fee for my specific card for this specific transation that would be excellent, and as a merchant i'd love if it were possible. we save a lot of money by paying a variable rate, so a transaction on a platinum card or something that pays a higher cashback to the cardholder costs us more than a basic card. We don't even know what the processing fee for your transaction was until the end of the month when our gateway provider invoices us.
- mvid 10y ago
  It would probably be the other way around, less expensive cards have a higher likelihood of fraud, so they would be charged a higher fee.
  - notatoad 10y ago
    it is not. risk is covered through the interest rates the cardholder gets charged - higher risk cards are higher interest. Reward program costs are paid by the transaction fee the merchant gets charged.

by cmurf 10y ago

sandworm101 10y ago

As a selfish consumer, I really couldn't care less who gets what share. I only care about the price. How walmart arrives at that price is their problem. Should it be higher than elsewhere, I'll go elsewhere. What we are seeing is a p_ssing contest between two big hitters that has spilled out of the boardrooms. These negotiations happen every day without us hearing a peep. Perhaps I'd be mildly interested if this was a spat between walmart and farmers or some a sympathy-worthy small business, but this is Visa.

notatoad 10y ago

>I'd prefer it if merchants could and would line item the exact fee for my specific card for this specific transation that would be excellent, and as a merchant i'd love if it were possible. we save a lot of money by paying a variable rate, so a transaction on a platinum card or something that pays a higher cashback to the cardholder costs us more than a basic card. We don't even know what the processing fee for your transaction was until the end of the month when our gateway provider invoices us.

mvid 10y ago
It would probably be the other way around, less expensive cards have a higher likelihood of fraud, so they would be charged a higher fee.
- notatoad 10y ago
  it is not. risk is covered through the interest rates the cardholder gets charged - higher risk cards are higher interest. Reward program costs are paid by the transaction fee the merchant gets charged.