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RETAILER CARD SWIPING MAY SOON COST YOU
Earlier in July, the 2 major credit card companies Visa Inc. and MasterCard Inc. came to a settlement of $7.25 billion on a price-fixing lawsuit that was brought by retailers due to swipe fees being charged by Visa and MasterCard to the retailers. There's been recent outcry from retailers and their associations about the settlement amount ($7.25 billion) being a gross underestimate and the ability for merchants/retailers to pass along some costs of accepting cards to consumers but under burdensome restrictions imposed and enforced by Visa and MasterCard. Once the legality of the case clears and settles, some retailers will be given the green light to pass down certain costs being charge from Visa and MasterCard to the customer that's utilizing debit or credit card to make purchases. Some retailers charge slightly more to use debit or credit cards today but this settlement would give many more discounts and grocery stores, electronic retailers, and others the opportunity to pass the buck on a larger scale.
While it's not a guaranteed that all retailers will pass down their cost to customers and it clearly wouldn't take place overnight, you should be prepared if it does take place. The current fees being charge to retailers from Visa and MasterCard is somewhere between 1.5% and 3%, so this would be the range retailers can add a surcharge to the customers' purchase for utilizing a debit or credit card at the store.
We're huge on clients using cash over credit to make various purchases from month to month and this way seems like the only way you could possibly avoid such a fee if retailers began passing the buck to the consumer.
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During the month of July, we had the opportunity to provide our expertise on financial matters involving small business and individuals. Click the logos below to read the articles and be sure to click the Facebook, Twitter and Google Plus button to help us spread our knowledge to many. Thanks!
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XNE Financial Advising, LLC is a financial service company that focuses on core financial management of individuals and small businesses. An independent, fee-only firm located in the state of Virginia that provides services to individuals & businesses on financial and business management matters with concentration of clients inside the tri-state area of Metropolitan area of the District of Columbia, (DC, MD, and VA) with minor concentration of other states.
Mr. Epps has a bachelor's degree in Information Systems Management and graduated Cum Laude of his class. Mr. Epps spent nearly eight years with a middle market investment banking firm and within his recent capacity at the firm, Mr. Epps served as a Registered Representative (Broker) where he was responsible for preparing, collecting, maintaining, and disseminating financial analysis for the banking sector. Mr. Epps is a current holder of FINRA Securities Licenses 7 and 63, an IRS Registered Tax Return Preparer (December 2011), Certified Microsoft Office User Specialist, Intuit QuickBooks Certified User (Pro/Premier Versions) and he's company is an Authorized IRS e-file Provider.
Sincerely,
Xavier Epps
XNE Financial Advising, LLC
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