Tag: credit card fees

November 1, 2011 B.J. Kharrazi

When you make a credit card purchase for $100, it costs the merchant about $1.00 in processing fees. It’s unclear why card issuers think they deserve a 2% cut. Most of the attention in recent months has been focused on fees for processing debit cards.  However, in early July, the Federal Reserve limitedd the base more »

September 9, 2011 B.J. Kharrazi

1. Know your Business Type Visa/Mastercard use pricing indicators or business types to apply discounts toyour rates. In the beginning, Visa/Mastercard used to charge one rate for everyindustry. Some industries refused to accept credit cards because they thoughtthe rates were to high and cut into too much profit margin. Supermarkets wereone of the biggest holdouts. more »

May 25, 2011 B.J. Kharrazi

Remember those old Visa commercials used to highlight places where they “don’t take American Express.” Well for legal medical marijuana dispensaries, it looks like a reversal: American Express won’t take them. As of late April, paitents using their American Express cards topurchase medical marijuana received notice that their cards were declined. The rejection of the more »

July 11, 2010 B.J. Kharrazi

From American Banker June 24, 2010: With preferences for carrying and using cash continuing to drop, more consumers expect merchants to accept debit or credit cards for payment. But not all merchants do, especially those that lack physical storefronts. Some industry insiders believe mobile-based products might help encourage them to accept electronic payments. Indeed – more »

May 6, 2010 B.J. Kharrazi

The credit card reform Congress passed last year ended “over limit” penalties –- typically $35 fees applied when cardholders charge more than their credit lines allow -– unless customers opt in. At least for consumers –- not so for business credit cards,