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Visa and Mastercard want to increase their credit card merchant fees.
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Hey credit Warriors and yes the two Biggest players in the U.S Credit Card Market visa and MasterCard are planning On raising their fees in the coming Months and this is according to the Journal Aaron do we have the journal Your feelings Journal Michael he means The Wall Street Journal Online oh the Wall right the wall I know I make that Joke every time but anyway this is According to the Wall Street Journal and They are saying that their article is According to quote people familiar with The matter in this video we will take a Look at exactly what is happening how This could affect the consumer and we Will attempt to answer the question is This going to ruin your credit cards So first if you do want to support our Show why not check out our sponsor Weibull where you can get up to 12 free Stocks simply for opening a new Brokerage account and depositing any Amount of money Weeble of course is the Fantastic zero commission brokerage app That features much better charts and Tools than the competition not naming Any names Robinhood minimum value is six Free stocks at a total value of 34 Together but if you luck out and Especially if you get all 12 it could be Several thousand dollars in value luck Of the draw what you get link for that Deal is below so here is the article
From the wall Visa Mastercard prepare to Raise credit card fees Merchants could End up paying an extra 502 million Annually in fees according to consulting Firm the fee increases are scheduled to Start in October and April according to People familiar with the matter and Documents viewed by The Wall Street Journal many of the increases are for Online purchases oh look it's Jennifer Aniston she's got to be ancient now Friends was like 25 years ago when she Getting back together with Brad Pitt Anyway the article goes on to repeat the 502 million dollar number that was Thought up by some consulting firm and It explains that the fee increases are Split into two halves the network fee That is pocketed by visa and MasterCard Will be going up as will The Interchange Fee that gets paid to the issuing bank For that particular credit card now both These fees are paid by the merchant for Example Walmart or any other store when You swipe your card and the merchant Typically will pass on these fees to the Consumer built into the price of the Product now why are they raising their Fees well here's what it says in the Article Visa Mastercard and the big Banks have said that fees help to cover Costs related to fraud prevention and Innovation but the wall gets straight to The point in what this is probably
Really about the banks often use the Money they get from interchange fees to Fund popular credit card rewards Programs I mean it could be to do with Fraud protection as well but certainly On the bank side these reward Pro Programs cost a lot and we have seen a Huge number of elevated welcome bonuses Hundred thousand points here 150 000 Points there on many credit cards as we Came out of the coveted shutdowns in Order to entice people to get back into Spending money all of that has to be Paid for somehow so I would say that These increases in fees could actually Be a good thing ensuring that those Rewards keep flowing it also could bring Visa and MasterCard fees closer to those Of Amex and then we wouldn't have all Those stores saying we don't accept Amex Because of the fees come on guys it's Like half a percent more personally I Accept all cards like if you want to buy A wallet from the credit Shuffle wallet Store you can pay with whatever card you Like I'm totally fine with funding your Rewards link for the wallet store is Down below by the way to put it in Perspective too Merchants paid about 93 Billion dollars to visa and MasterCard In the form of fees in 2022 so using Very rough math that 502 million Increase is like half a percent and when Inflation has been running up to the
Highest single digits for the past year Or so half a percent really isn't that Comparable but you can understand that Merchants would be concerned all right It's a fee increase on top of inflation Maybe they feel they can't raise the Prices that much anymore the article Quotes Doug Cantor general counsel of The National Association of convenience Stores saying it's just a bad Combination and bad timing for any of These fee increases to happen I mean you Would say that it's always bad timing But hey maybe it really is bad timing With all the inflation and stuff it's Also kind of peculiar that this is Happening at the same time that Lawmakers are trying to get the credit Card competition act through Congress That is a new law that if passed would Require every credit card to run over Not one but two networks and one of These networks would have to be a Smaller one with presumably lower fees It could kill credit card rewards as we Know them so that is something to be Really concerned about but going back to The fee increase on Visa and MasterCard Personally I don't think this fee Increase will be a problem for consumers Now obviously Merchants will pass it on To consumers in their prices but it's Probably just going to get lost in the General price increases we see through
Inflation anyway and actually if Inflation comes down or prices are able To come down you might not even notice It because you could have prices coming Down here them going up slightly because Of merchant fees I don't think you're Even going to notice it and the good Thing is that it will ensure that your Rewards are paid for unless the credit Card competition act passes and screws Everything up all right guys that is it For me today don't forget to get up to 12 free stocks from Weeble in the links Below also put a link to my wallet store Where you can pick up these very nice Minimalist wallets and also my traveler Wallet as well do check it out please Subscribe if you're new I'll see you Next time bye