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Credit card rules change
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elgato



Joined: 24 Feb 2005
Posts: 12252
Location: Texas

Posted: Tue Oct 05, 2010 7:06 pm    Post subject: Credit card rules change  

Visa Inc. and MasterCard Inc. agreed today to allow retailers to offer rebates to consumers who use a lower-cost payment form, for example, a debit card instead of a credit card, or a credit card that does not offer rewards and thus does not cost the merchant as much to accept.

The two big card brands announced they were making the changes as part of a settlement of a lawsuit filed today in federal court by the U.S. Department of Justice against Visa, MasterCard and American Express Co. American Express refused to settle and say it will contest the lawsuit.

It remains to be seen how much online retailers will benefit from this settlement.

Payments consultant Steve Mott of BetterBuyDesign says it will free online retailers to accept payment options such as PIN-debit should such systems gain traction, and will open up competition in the burgeoning field of mobile payments.

“More choices and more competition is a very good thing for all merchants,” Mott says.

But Allen Weinberg of Glenbrook Partners, another payment consulting firm, is skeptical that many online retailers will find it worthwhile to steer a shopper to a lower-cost card, at least for a single purchase. The exception might be when a shopper has a card on file with a web merchant and makes repeat purchases—in that case, Weinberg says, the retailer might realize meaningful cost savings by encouraging the consumer to put a lower-cost card into her wallet on the retailer’s site.

more.. link to news article
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salehoo



Joined: 01 Dec 2009
Posts: 56

Posted: Wed Oct 06, 2010 6:42 am    Post subject:  

That would be great news to all consumers! When retailers and companies provide their customers with cost saving incentives and more options, more consumers will surely be able to enjoy discounts and consequently, enjoy the great benefits of lower prices.

It will also work best if merchants will be informing buyers which cards will decrease business expense the most so that these consumers can choose accordingly, and to have savings passed on to them. :)
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Izzonet



Joined: 02 May 2012
Posts: 30

Posted: Sat Jun 23, 2012 9:55 pm    Post subject:  

Hello

i didnt know about it. just read it now.
it's fantastic and will defently bring more consumers.
these changes are really important.
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