2013-1-26 abcnews: Fees Fees Fees

[keewee]

Another reason that accepting bitcoins could benefit both the reseller and their customers:

http://abcnews.go.com/Business/credit-card-fees-effect-sunday/story?id=18316310

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[odolvlobo]

There is no mention of bitcoin in the article or the video.

[keewee]

There is no mention of bitcoin in the article or the video.

True, but I felt this was a perfect example of where the existing systems fail. Fees are so high that resellers are impacted, and this change in the US law enables them to pass these costs onto the consumer. With wider adaption of bitcoin at point of sale both the reseller and the consumer would benefit.

If this is too off topic then please Mr. Moderator, feel free to move it somewhere more appropriate

[SlaveInDebt]

There is no mention of bitcoin in the article or the video.

True, but I felt this was a perfect example of where the existing systems fail. Fees are so high that resellers are impacted, and this change in the US law enables them to pass these costs onto the consumer. With wider adaption of bitcoin at point of sale both the reseller and the consumer would benefit.

If this is too off topic then please Mr. Moderator, feel free to move it somewhere more appropriate

Exactly another gateway/niche for bitcoin.

[nevafuse]

Fees are so high that resellers are impacted, and this change in the US law enables them to pass these costs onto the consumer.

Why the government is involved is beyond me.  Every credit card contract states that accepting their credit card means you can't offer a discount for cash (or a surcharge).  I've even reported a few gas stations for doing this (to the credit card company).  If you don't like their terms, don't accept credit cards.  You may lose business, but that's the trade off you have to make.

I hope once the block reward is low enough & transaction fees come into play that its cheaper than current credit card fees but there is no guarantee.  But bitcoins many other benefits make it worth it.

[justusranvier]

Every credit card contract states that accepting their credit card means you can't offer a discount for cash (or a surcharge).

That's not true. Discounts for cash are allowed, but surcharges for plastic are not allowed.

[nevafuse]

Every credit card contract states that accepting their credit card means you can't offer a discount for cash (or a surcharge).

That's not true. Discounts for cash are allowed, but surcharges for plastic are not allowed.

Cash discounts = surcharges for plastic.  No matter how you word it, the product is cheaper when not using a credit card.  This increases the incentive for people to not wanting to use a credit card which is not what credit card companies want therefore they add that clause to the contract with the merchant.

The point is the credit card company can take w/e course of action is stated in the signed contract - like penalizing or terminating the merchant.  Or the merchant can choose to not accept credit cards.  Why does the government need to get involved?  I guess Visa & Mastercard need to step up their lobbying efforts.

[justusranvier]

Cash discounts = surcharges for plastic.  No matter how you word it, the product is cheaper when not using a credit card.  This increases the incentive for people to not wanting to use a credit card which is not what credit card companies want therefore they add that clause to the contract with the merchant.

Do you have an example of one of these clause?

[nevafuse]

No, I do not have a copy of the clause.  I am not a credit card merchant.  Do you have a copy?  Does it say cash discounts are allowed, but surcharges are not?