User uShare Login | Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.

View Weather Current Conditions Sioux Falls Change Location
Set Weather Options



Significant snowfall for KELOLAND on Monday. Click Here For Storm Center Update.



[0] My Saved Articles
Back to all news


Find local businesses
on the KELO Pages!


Credit Card Settlement & Local Business

July 20, 2012, 9:50 PM by Angela Kennecke

Credit Card Settlement & Local Business

Retailers will be getting a break from those hefty credit card swipe fees for every time someone uses a credit or debit card in their stores. 

The largest anti-trust lawsuit was settled for more than $7 billion with Visa and MasterCard. The deal also allows retailers to tack on a surcharge to consumers when they pay with plastic. 

Ninety-five percent of the sales made at Play It Again Sports are with a debit or credit card.  And for every transaction, owner Dave Rust pays out between 1.5 and three percent to the credit card company.

"A regular card is upwards of a little over two percent," Rust said. "A lot of people probably don't know this, but for any rewards cards, that's a higher percent.  A lot of people think the card company is paying for their rewards, it's actually the retailers."

The $7.5 billion antitrust settlement retailers reached with Visa and MasterCard includes an agreement to reduce swipe fees for eight months and it allows merchants to assess a surcharge for credit card transactions. 

But Rust doesn't plan to pass along his expense to his customers. 

"If I was a consumer I wouldn't like it.  I guess you put yourself in their position," Rust said.

Consumers like the convenience of plastic and question the idea of paying more for it. 

"I just don't think people carry that much cash these days.  Everybody has debit card or credit cards and don't deal with cash at all hardly sometimes," customer Jay Bentz said.

"I'd probably much rather use cash if I knew I was going to get charged more with my card," customer Zac Turbes said.

While Rust doesn't know just how much this settlement with the card companies will save him, he's glad to get some help with the bottom line.

"The credit card companies had a free reign. It keeps them in check a little bit," Rust said.

The settlement must still be approved by a judge.  The national grocery chain Kroger and a few other retailers are considering charging one price for credit purchases and another for cash.

Previous Story

Next Story




View business

You may also like

Board Of Education Member Had Multiple Contracts With State

11/23/2015 6:05 PM

That means in addition to her state salaries at USD and Northern State, Duncan earned an additional $124,000 in contracts from the Department of Educa...

Full Story | Watch
Fired GEAR UP Worker Defends Stacy Phelps

11/24/2015 6:05 PM

When the state pulled its multi-million dollar GEAR UP contract from Mid Central Educational Co-Op in September, all the current GEAR UP workers were ...

Full Story | Watch
Bison Ranch Owner By Turner Gets Permit For Feedlot Addition

11/25/2015 1:35 PM

Stanley County commissioners have approved a feedlot at a bison ranch owned by media mogul Ted Turner.

Full Story
Black Friday Shopping Starting on Thanksgiving

11/21/2015 5:43 PM

As more stores announce their Black Friday hours, the times are getting earlier and could even cut into your Thanksgiving meal.

Full Story
Some Black Friday Deals Are Not Deals

11/23/2015 4:51 PM

Recent research found just because something is called a doorbuster doesn't mean it's significantly discounted.

Full Story