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The fight over credit card swipe fees enters a new year with no end in sight (www.nbcnews.com)

submitted 3 weeks ago* (last edited 3 weeks ago) by MicroWave to c/economics

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Summary

Small businesses are struggling with rising credit card swipe fees, which now average 2.26% per transaction and cost U.S. merchants $172 billion in 2023, a record high.

As shoppers increasingly use cards over cash, businesses face growing costs, with some passing fees to customers through higher prices or convenience charges.

Visa recently raised certain fees, sparking criticism from lawmakers and advocacy groups pushing for transparency and competition.

The bipartisan Credit Card Competition Act seeks to address swipe fee issues but remains stalled in Congress, leaving the conflict unresolved for now.

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[–] [email protected] 11 points 3 weeks ago (2 children)

This industry should not exist at all...

While it doesn't kill like health insurance, entire set up is a rent seeking, parasitic business model. These two companies are imposing 3% tax on gross consumer spending. And we wall accept it like good little bitches for some "points" 🤡

While pedon can only do thoughts and prayers at macro level beyond shit post about it... There is direct action that everyone can take

use case as much as possible.

These clowns created gamified card point systems that, if everyone actually played them right, they would be losing but they are not.

Don't carry balance for stupid shit you don't need. Their golden goose is usurious interest rate they charge on poorly disciplined and fell on hard time peasants.

Every loves talking about the French trash removal techniques but very few people appear to be wiing to make basic behavioural adjustments to dent these parasites profit.

Do better.

[–] [email protected] 3 points 3 weeks ago (1 children)

May not be the answer you like, but the system exists as is, and there’s little hope of a single person’s habits of changing that.

The best we collectively can hope for is clawing 2% back(at minimum) using a flat rate card on everything because in most places there is no cash payment discount. You can take it a step further if you’re pedantic enough with numbers (like me). If you have enough discipline to treat cards as cash and can handle a spreadsheet of cards for each spending category, credit companies net lose money off of you

[–] [email protected] 2 points 3 weeks ago

there’s little hope of a single person’s habits of changing that.

I do the best I can, and spread the word so maybe it will snow ball. Collective action can happen.

I obviously still use credit card when needed, and got tight points game.

But I always tip in cash. Let owner eat that fee, give server/barter tender cash. Extra benefit it cuts out the parasite owner too 🐸

[–] pdxfed 3 points 3 weeks ago (1 children)

You're correct, but your method is very likely to result in systemic change without a huge catalyst to drive behavioral shift. It's more likely crypto being accepted will be the end of visa/MC as they own enough officials to never be in danger.

In the meantime, I churn credit cards and earn points and cash and have never paid them $0.01 of interest and have been a not insignificant cost to their profits. I understand these benefits are being paid for by others, but they would be in the same boat whether I was profiting off CC companies or not. It's not ideal, but is certainly the most pragmatic approach that anyone can take up individually.

[–] [email protected] 2 points 3 weeks ago

Engaging parasite is feeding the parasite hence why I am shilling harm reduction tactics and not saving that v card for the utopia we promised on 20 years.

Every dollar spend in cash or check, is profit denied to the parasite.

[–] [email protected] -2 points 3 weeks ago* (last edited 3 weeks ago)

Monero