this post was submitted on 16 Nov 2025
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Finance

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Merchants’ ‘victory’ over credit card fees will just complicate things more for them (www.theguardian.com)
submitted 1 day ago by Powderhorn@beehaw.org to c/finance@beehaw.org
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Want to buy a new shirt from your friendly neighborhood small business? In some cases, be prepared to pay out 2.5% more as a “financing” fee because you’re using a credit card. Enjoying that meal at the local diner? Better have cash or you could be subject to the same fee. Grabbing a bag of chips and a soda at the local convenience store? Oops … Unless you’re prepared to spend a minimum of 10 bucks you can’t use your credit card, sorry.

I’ve always been irritated by these practices. And I know I’m not alone. Who carries cash any more? Why are we, the customer, being shamed because we choose to buy something using what has become a standard form of payment over something that’s clearly a thing of the past?

Merchants have been fighting the credit card companies about these fees for years. And now they’ve won. This past week, Visa and Mastercard ended their battle, and now future fees will probably be lower for consumers that use some cards, particularly the ones that offer fewer rewards. But did these businesses really win? I’m not so sure. Be careful what you ask for.

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[–] Kissaki@beehaw.org 2 points 20 hours ago

If you run a retail shop or a diner, isn’t it easier to just calculate how much the merchant fee costs as a percentage of your total revenues and then spread out a small price increase among all your products, where the impact would be barely noticed?

How would that kind of collection, calculation,and estimation be easier than a simple provider to cost association?

The suggestion is a subsidy to the more expensive providers at the cost of the cheaper ones. Make of that what you will.

Will a customer care if they’re paying $12.50 or $12.75 for a burger? No. Will they raise an eyebrow because you’re charging an additional fee on top of the entire bill because – gasp – they don’t use cash? Yes, they will.

Making cost and fees obvious doesn't sound to bad. It informs the consumer, with transpanency and opportunity.