Credit card firms set out to stop separate pricing

[Metz]

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well if they include the charge then it would be higher prices and Im sure someone will still sell at no credit card charge added rates unless its a monopoly. So kung computer parts it would most likely stay low kay grabe ang competition.

or, the govt is monitoring the prices already and they can penalize those who abuse.

[romil]

is there any penalty for shops saying that some items cannot be purchased with credit card? where can we read the actual DTI Administrative Order?

[cebufox]

anybody who has a copy of that order hope you can post it here.. :mrgreen:

[pridi]

the thing lang ani man gud is, ang credit card company maoy mo charge sa merchant kung mo gamit ug credit card ang customer.

so kung mo palit ang customer worth 100, ang ibayad sa credit card company is approximately 5% less or 95 padung sa merchant. i've heard this from a banking instructor while teaching the cashiers unsaon pag gamit sa terminal. that simply means ang merchant maoy mo shoulder sa 5 pesos nga gasto.

dapat credit card companies should NOT charge the merchants on a per customer or per transaction basis, para dili ipasa sa merchants padung sa customers ang bank charge. im not a merchant, pero i understand the sentiments of the merchants pud.

kung fixed monthly charge cguro mas maau nuon.....

[dagget]

again let me repeat

yes its true the credit card company takes 5% of the total amount. 95% goes to the merchant.

What is that 5% for??

-computer servers that process the payment. (Imagine running computers 24hours a day/7 days a week) who will pay for the electricty for that (do you think the merchants are willing to pay for the servers The software that comes with the servers The upgrades for the servers and software The electricity)
-operating a toll free hotline(If your card gets lost or stolen you want to call and cancel the card right?) do you think a toll free number is FREE( the credit card company pays for it)


In the end not the whole 5% is kept by the credit card company. It is used to pay and maintain the service.

[ryan22]

this is good news!

most of the time i use credit card so maka save nata ani...

lets wait till nov 5.....

[pridi]

In the end not the whole 5% is kept by the credit card company. It is used to pay and maintain the service.

well i could only laugh on this, because not everyone who uses their cards could pay their balances on time, so what do the credit card companies impose? 3.5% interest per month.... the so called services are provided just to pamper the customers so they (customers) could not feel nga naka kwarta ug dako ang credit card company....

[vipvip68]

From the Point of view sa merchant, kung same ra ang charge sa cash or credit, mas mu prefer ang merchant ug cash kay naa may 3-6% cut ang credit card companies for their services. The merchant has 2 options, either shoulder the 3-6% or pass this on to the consumer by charging higher for credit card purchases. Since this practice is illegal, merchants who cannot shoulder the 3-6% might pass this on to consumers by increasing the cash purchase price or compromise by increasing the cash price by mga 2-3% para partially ma shoulder sa consumers.

Computer shops for example rely on very low margins.. so they always prefer cash... kung i-enforce gyud ni sya, theyll have no choice but to increase cash price kay kung credit ang purchase sobra na ka gamay ang ilang ginansya. I think gov't should regulate pila ka percentage ang i-charge sa credit card companies based on the industry. If this wont happen, expect computer shops to opt not to support credit card payments. Consumers ra gihapon ang alkansi.

[droid]

the whole point of credit cards is that it can attract more buyers due to its convenience. its suppose to increase sales. the "increased sales" generated by the credit card option should be more than enough to compensate for the charges of the credit card companies.

[dagget]

well i could only laugh on this, because not everyone who uses their cards could pay their balances on time, so what do the credit card companies impose? 3.5% interest per month.... the so called services are provided just to pamper the customers so they (customers) could not feel nga naka kwarta ug dako ang credit card company....

laugh because we are not talking about interest on your balance every month

we are taking about the surcharges............. SURCHARGE = means the amount you pay on TOP of the PRICE.

As you said 5% goes to the credit card company everytime the credit card is used. (We are not talking about the finance charge)

That 5% is used for:

-computer servers that process the payment. (Imagine running computers 24hours a day/7 days a week) who will pay for the electricty for that (do you think the merchants are willing to pay for the servers The software that comes with the servers The upgrades for the servers and software The electricity)
-operating a toll free hotline(If your card gets lost or stolen you want to call and cancel the card right?Huh) do you think a toll free number is FREE( the credit card company pays for it)