User uShare Login | Register
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.


52° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Share your Photos, Videos, and Stories on uShare! Click here to get started.

News

[0] My Saved Articles
Back to all news

Business

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
SIOUX FALLS, SD -

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


Comments





Sponsored
Find Local Businesses on KELO Pages!

View business

You may also like

Lick The Spoon Expands Pot Pie Business

4/14/2015 3:00 PM

Lick The Spoon is expanding its pot pie business.  

Full Story
Dozens Of Park Positions To Fill Yet

4/15/2015 5:00 PM

Every summer, the city of Sioux Falls hires hundreds of people for seasonal jobs within the park system

Full Story | Watch
SD Driver License Stations Accept Plastic

4/16/2015 11:45 AM

You no longer need to stop by a cash machine before renewing your driver license.  All South Dakota exam stations now accept credit and debit car...

Full Story
First Dakota National Bank Buys Home Federal Branch in Pierre

4/15/2015 5:50 PM

First Dakota will assume deposits and loans associated with the branch and will acquire the branch facilities and equipment.

Full Story
What To Shred On Saturday

4/16/2015 10:10 PM

April 15, 2015 has come and gone.  Now it's time to get rid of old tax returns you don't need anymore.  But what should you shred an...

Full Story | Watch


Events