Question
By Steven Bodzin
Feb. 28 (Bloomberg) -- MasterCard Inc., a credit- and debit-
card company, in June will change the fees it charges merchants
that accept its cards, the Wall Street Journal reported.
Under a new 100-page fee schedule, the company will charge
each merchant one of four rates, depending on the card that a
customer uses, the newspaper said in an article for tomorrow's
edition.
Previously, there were three rates, with merchants paying
more to accept cards that have more customer rewards and less for
basic cards, the Journal said. In addition, different merchants
paid different rates, it said.
The National Retail Federation said the new structure will
maximize MasterCard's income, the Journal said. The report said
judging whether the changes would lead to an increase in fees was
difficult. The company said it is a more sophisticated way to
break up its portfolio, the newspaper reported.
WSJ
Answer
pyap has the best deal for visa amex mastercard 2.2% no hidden fees as long as you do 10,000 per month its a great saving the change to paypal processing cover the total cost of my office rent
Answer
By Steven Bodzin
Feb. 28 (Bloomberg) -- The report said
judging whether the changes would lead to an increase in fees was
difficult. WSJ
Well, I don't think that it's all that "difficult".
I think that it will lead to an increase.;)
We all know about "enhancements".
Answer
...100-page fee schedule, the company will charge
each merchant one of four rates...
It is hard to imagine that it requires 100 pages to explain a program with only four rates, but married to a lawyer I should not be surprised :rolleyes: .
Answer
The National Retail Federation said the new structure will maximize MasterCard's income, the Journal said.
The report said judging whether the changes would lead to an increase in fees was difficult.
Back to back sentences and yet they don't know if it will lead to an increase in fees...
Answer
Well, I don't think that it's all that "difficult".
I think that it will lead to an increase.;)
We all know about "enhancements".
good to see ya back Rich.
Looking forward to your mantra............
Answer
The four tier system really isn't a big deal. Basically it's because the merchant processors are already sticking it to the merchants. MC is just trying to get a bigger cut of what the merchant is already paying.
If you are a merchant you should be taking a keen interest in your Mid-Qual rates. Large merchants don't really care as they don't pay these fees. Look for smaller merchants to pass the costs on to the customer.
By the way, speaking of large companies, how many of you have checked to see if you actually got miles/rebates from purchases at Wal-Mart or Target?
The other thing it makes you wonder, if VC/MC are getting extra $$$ from the merchants for rewards cards, why do so many miles cards have annual fees?
Answer
[QUOTE=motytrah;7322737]how many of you have checked to see if you actually got miles/rebates from purchases at Wal-Mart or Target?
QUOTE]
Huh?
R U suggesting that those using a rewards card at the above merchants don't get the miles from the credit card issuer??:confused: :confused:
If you use starwood Amex at Target the Starpoints are awarded/posted by American Express. Neither Target nor SPG has aything to do with this.
If you use a Citi AAdvantage mastercard at Target, then the AA miles are awarded by Citibank. Neither Target nor American Airlines is "charged" for the AA miles. In fact, AA is 'paid' for the miles.
I don't get the point of this post.
Answer
[QUOTE=motytrah;7322737]how many of you have checked to see if you actually got miles/rebates from purchases at Wal-Mart or Target?
QUOTE]
Huh?
R U suggesting that those using a rewards card at the above merchants don't get the miles from the credit card issuer??:confused: :confused:
If you use starwood Amex at Target the Starpoints are awarded/posted by American Express. Neither Target nor SPG has aything to do with this.
If you use a Citi AAdvantage mastercard at Target, then the AA miles are awarded by Citibank. Neither Target nor American Airlines is "charged" for the AA miles. In fact, AA is 'paid' for the miles.
I don't get the point of this post.
Target and Wal-Mart push enough business through the system they refuse to pay anything but the lowested possible qualified rate for credit card purchases. Many rewards programs drastically reduce awards when the merchant doesn't pony up extra money. I think it's more likely to see exclusions on low/no annual fee reward programs.
Here's some fine print off a couple I knew of off the top of my head:
Discover:
"Purchases made at select warehouse clubs, discount stores and their affiliates ("warehouse purchases") earn .25%"
Citi Plat Select:
"Purchases not eligible to receive the 2% rebate include, but are not limited to, purchases made at warehouse clubs, discount stores, and department stores."
Citi Drivers Edge:
"Purchases not eligible to receive the 3% rebate (6% rebate for 12 months) include, but are not limited to, purchases made at warehouse clubs, discount stores, department stores and convenience stores."
Chase Freedom:
"Purchases not eligible to receive the 2% cash back include, but are not limited to, purchases made at convenience stores, superstores, warehouse clubs and discount stores."
Answer
...Many rewards programs drastically reduce awards when the merchant doesn't pony up extra money. I think it's more likely to see exclusions on low/no annual fee reward programs.
Here's some fine print off a couple I knew of off the top of my head:
Each of the cards you mentioned, except Discover, merely uses this language to clarify that those merchants do not qualify for the bonus rates that they offer for transactions at supermarkets, pharmacies, gasoline stations, etc. They still earn the base rate that is paid on other transactions.