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Old 12-22-2013, 12:35 PM   #16
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Join Date: Jan 2001
Posts: 11,933
Originally Posted by Lamplighter View Post
Not counting long/short term loans ... there are 3 basic sales modes:
A merchant should charge according to the transaction method. Debit cards costs had increased to about 1.5% per transaction. Began dropping to around 1% only after the Federal Reserve capped transaction fees.

The cap meant a debit card transaction could be as much as 21 cents. Why, when banks took money directly from the debit holder's bank account? Their costs irrelevant to the transaction fee since consumers are kept ignorant. Debit cards became even more profitable than credit cards. With charges far exceeding costs.

Credit and debit card costs must be opaque to consumers to protect high profit margins. Smart cards are also a threat to those profits. Innovation (ie smart cards) means transaction costs are even less - therefore another threat to high profits margins.

Other transaction methods include a bank draft or checks, account with the store, and smart cards. Also threats to bank profits IF consumers actually know what banks really charge. Banks need consumers to stay ignorant by banning surcharges for credit or debit card transactions and by keeping smart cards from consumers.
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