Question regarding fee for using debit

iVillage Member
Registered: 12-21-2004
Question regarding fee for using debit
21
Sat, 04-10-2010 - 11:37am

We have been noticing that some stores in our area are beginning to charge extra if you use your debit card.

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iVillage Member
Registered: 11-02-1999
Sat, 04-10-2010 - 12:03pm

Hmmm. You know, I remember when the fast food restaurants around here (NYC metro) first started taking debit/credit cards, they did charge a fee. But eventually it phased out. I guess the renewal (or start-up) of that practice is just a sign of the hard economic times.

Whether it's a credit or debit purchase, merchandisers are charged a fee for the transaction (usually a base amount plus a percentage of the total), so I don't know whether they'd waive the fee if you had it run as credit - to them, it's the same either way. It sounds like they're trying to save some money and/or make a little extra off the sale.

I haven't seen it yet around here, but I wouldn't be surprised if it popped up again...










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iVillage Member
Registered: 07-26-1999
Sat, 04-10-2010 - 12:35pm
I don't know about in the US, but in Canada it is illegal under the Bank Act to charge extra for customers to use their debit cards. Some businesses charge an extra 25 cents anyway; it's because they get charged so much for a business banking account and I assume they get charged per debit transaction. They can deposit a days' worth of cash and checks in one transation so that is cheaper than if they have many debit transactions in a day.
iVillage Member
Registered: 01-12-2010
Sat, 04-10-2010 - 1:07pm

Really? It's illegal here?
I know tons of stores that put a minimum on it...Ie if your purchase is less than $5.00 then you have to pay .50 fee.

Based on the accounting I've seen, most companies charge a flat rate (% of a total batch amount) for credit cards, and then most debit card processing companies charge a % AND like .12 or .28 per transaction for debit purchases.

Melissa
~ Mom to 5 ~
~ Melissa ~ ‎"We need to find the courage to say NO to the things and people that are not serving us, if we want to rediscover ourselves and live our lives with authenticity." - Barbara de Angelis
iVillage Member
Registered: 03-31-2010
Sat, 04-10-2010 - 2:36pm

I haven't heard of it or seen it yet here in my part of the south, gal_jasper.

Robyn CL- Debt Support Group


iVillage Member
Registered: 07-26-1999
Sat, 04-10-2010 - 7:33pm
Yes, it's my understanding that it is not permitted under the Bank Act for business to charge an extra fee for debit card use unless they have that as part of their agreement with their bank or debit provider. That may have changed, I could be wrong, but that is my understanding.
iVillage Member
Registered: 11-17-2007
Sun, 04-11-2010 - 2:58pm

I am the old one on here So here is a little History lesson from Mary Ann's book


When the cards started the little businesses around Louisville always had two prices on everything with or without a credit card. I remember a few things we bought like a chair one time and the owner said to us if you pay cash I can give you a 2% discount because that is what I have to pay the bank


Several years ago I has a bridge made for my teeth. The price was 6200 with the card and if I used the credit card they offered in the office If I paid cash or my own credit card check the price was 5600 that is a big saving.


Last year when I got my implants for my upper teeth. My dentist bill for the plate and implants would have been like 6100

iVillage Member
Registered: 06-02-2009
Sun, 04-11-2010 - 6:20pm

Years ago (about

Lila
iVillage Member
Registered: 08-04-2008
Sun, 04-11-2010 - 8:24pm

"I know years ago everyone paid in cash - but we are living in different times"

Actually crime has gone down over the last two decades, not up. The media just makes crime seem more prevalent as it is showcased much more predominantly.

I personally feel the thieves are the bankers and credit card companies, they will steel more of our hard earned money than criminal could.

I use cash all the time, just took $600 cash down to Florida on vacation and we never even locked the condo door.

-Marie




iVillage Member
Registered: 03-27-2005
Mon, 04-12-2010 - 9:59am

Not sure about how fees work as I always pay with cash.

iVillage Member
Registered: 10-01-2008
Mon, 04-12-2010 - 12:44pm

I recently stopped to purchase breakfast sandwiches for the office at a market and they told me it was cheaper to run a transaction as a credit vs. debit.

Norma


"Patience is the best remedy for every trouble"- Plautus


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