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Credit card fee fight pits payment companies against retailers
- nine_zeros 3y agoI hope the new fednow system will enable faster, card free transactions.
- tempaccount3333 3y agoI can't wait for my bank to implement fednow. Faster transactions and the social credit are huge plusses IMHO. Hopefully, people will start to take climate change and other crises more seriously (eg covid) and think twice before they spout out disinformation about the vaccine, etc. Fednow has massive potential to ensure this happens.
- AlexAbner 3y agoBasically you are in favor of the government manipulating you. Very democratic what you say. All set for a dystopian society
- tempaccount3333 3y agoI'm sure you were one of the ones that made covid last a lot longer than it should have. All I'm saying is that when the next crisis happens (most likely a climate crisis because that isn't resolving on it's own) there are going to be people out there saying it is a government conspiracy. The crisis won't get resolved if 50% of the people don't comply to common sense solutions (in the case of covid it was simply to wear a mask and get vaccinated but the climate crisis will likely mean even deeper sacrifices). Doing it through your wallet is the best way to get people to comply.
- Our_Benefactors 3y ago> Doing it through your wallet is the best way to get people to comply. Incompatible with free speech and free society. I am horrified that there is no /s tag at the end of this post. Do you really think shutting someone’s bank account makes them change their view? Or it’s acceptable to you because it’s only used to nudge toward the “right” views of the period? Do you not see how this destroys the rights of the individual?
- tempaccount3333 3y agoThis is a good start: https://twitter.com/WallStreetSilv/status/1685831369585233920 https://twitter.com/WallStreetSilv/status/168583136958523392...
- paulgb 3y agoI love traveling cheap on card points and have held V & MA stock long enough to double my cost basis, so I probably stand to lose if this passes, but I think it’s a good idea. Since most merchants charge the same rate regardless of means of payment, cash and debit customers essentially subsidize free perks for people who use reward cards. Because reward cards scale roughly with your credit score and ability to pay an annual fee, it’s pretty much a regressive tax on low-income people with middle/upper income people seeing the benefit. There’s essentially no price pressure for interchange fees to go down, as long as they are absorbed by the merchant.
- zeroCalories 3y agoI think the perks are one aspect, but even if you got rid of them there would still be benefits such as convince and security. I think outlawing credit cards should only be on the table once good infrastructure for payments are in place.
- toomuchtodo 3y agohttps://news.ycombinator.com/item?id=36801491 https://news.ycombinator.com/item?id=36801491
- zeroCalories 3y agoYes, I was thinking of that. Zell is also great. But it's still not a drop in replacement for cards, we're still aways from that.
- toomuchtodo 3y agoMore on the topic: https://www.axios.com/2023/07/22/fednow-instant-payments-credit-cards https://www.axios.com/2023/07/22/fednow-instant-payments-cre...
- AnthonyMouse 3y agoIt has always been obvious that points systems are an arbitrage scam. The payment network pays the customer 1% to use their card for which they charge the merchant 2% or more when there are alternatives with low or no fees. The customer chooses the payment method but doesn't directly pay the processing fee, so they choose the payment method with the rewards and then indirectly pay the processing fee which is twice as much or more. Merchants have trouble resisting this because the same system is the one that allows their customers to buy on credit, which is worth more than 2% to them even though that is more than it costs to provide that service in a competitive market. And then the customers who don't need to buy on credit still choose the payment method with high fees for the rewards.
- AtlasBarfed 3y agoReform only happens in washington if two large corps/marketing segments oppose each other. News at 11.
- yoshamano 3y agoThis feels like too little too late to stop what I think will actually solve the issue for retailers, charge more for credit card transactions. Every since businesses have been able to charge more for credit cards (as opposed to having to instead offer a cash discount) I've been slowly running into more and more local businesses that slap on a 2% - 3% for credit cards. So now I need that reward from my credit card to just break even on the transaction.
- LispSporks22 3y agoT-mobile is about to charge $15 for the privilege to pay my bill by credit card. I’ll just go somewhere else where there is no fee.
- xtiansimon 3y agoI used to pay my T-Mobile plan with ACH from the T-Mobile site, but that is not an option. I can only pay with CC. What you’re describing sounds like a rate increase.
- LispSporks22 3y ago"T-Mobile: FINAL REMINDER of Action Needed by 08/06/2023. We’re changing the payment methods that qualify for AutoPay discounts. To continue receiving your $15.00 AutoPay discount, you must update your payment method to a debit card or a bank account. To keep your discount, please visit t-mo.co/AutoPay25 to change your payment method by 08/06/2023."
- Phrenzy 3y agoMy CC gives me cash back and provides cell phone insurance if I pay my cell bill with their card. If T-mobile pulls that on me, I'm gone.
- bombcar 3y agoI'm fine with the added fees, and they usually more than the rewards so I just pay cash/debit.