Merchants Will Be Able to Pass on Credit Card Fees Starting Sunday
Under the terms of a $7.2 billion class action settlement that a US federal judge approved in November, starting this Sunday, merchants will gain the legal right to charge credit card-paying customers extra to make up for their processing fees. Currently, every time a customer makes a payment with a credit card, merchants are charged about $0.25 + 2.9%....
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Cryptocurrencies have fees, but so do payment cards. Credit card providers charge merchants a cut of the payments they accepted, called interchange fees or swipe fees. With two major card providers aiming to elevate rates, could crypto become an alternative? “Visa Inc. and Mastercard Inc. are planning to raise swipe fees for some types of credit-card purchases in April,” the Wall Street Journal reported on Wednesday, adding: “Though invisible to consumers, they [interchange fees] are glaring to merchants, which often end up paying fees of about 2% of their customers’ credit-card purchases.....
The cost of traditional banking transactions has come into focus once again as Amazon announced it would no longer accept Visa credit cards for payment in the UK. It was part of a battle that began earlier this year in Singapore and Australia where the e-commerce giant took steps to deter Visa credit card payments. An Amazon spokesperson explained, “We believe the cost of accepting credit card payments should be going down over time to allow merchants to reinvest savings into low prices and shopping enhancements. Yet despite technical advancements, some cards’ cost of payments continue to....
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In an article published in TopStockAnalysts, analyst Jody Chudley argues that the high cost of credit card fraud will drive many merchants to Bitcoin. And if merchants prefer Bitcoin then consumers will adopt it and, so, the outcome is that a lot of today's Bitcoin startups' stock prices will soar. BitcoinShop.us is, according to the analyst, ideally positioned and here's why. Credit Card Fraud Plagues Retail. A 2009 study by Lexis Nexis shows that US merchants lose about $190 billion per annum to credit card fraud. A recent example involved the online retailer Target who's database was....