Monday, July 16, 2012

Mastercard Visa Credit Card Settlement: Why Retailers Should Not Surcharge Credit Card Purchases

On Friday, retailers finally won a settlement against Mastercard, Visa and banks issuing credit cards that allow them to impose a surcharge on credit card purchases. Merchants have been able to offer discounts for cash purchases so this surcharge is somewhat redundant. Five reasons why retailers should not impose a surcharge to consumers making credit card purchases.

I would refuse to pay extra for using a credit card for my purchases. Would you support a retailer who makes you pay for their swipe or interchange fees? Would you pay cash instead of credit cards?
Read more here...

1 comment:

  1. That's crazy! I mean, I understand retailers having to pay a percentage to the cc companies, but it's just part of doing business. Having the cc option is a convenience to your shoppers, just like air conditioning in a store. You wouldn't apply an "air conditioning surcharge" to shoppers' purchases just becuase it's a cost you have to eat as a business owner. Or how about an "health benefits surcharge" or a "401(k) surcharge" because you provide benefits to your employees. These costs should all be built into product pricing.

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