Walmart strikes again

Bird · Mar 10, 2004

( I love the credit card, pay it off every month so I don't have any interest )

Yep, me, too. I never carry a checkbook with me and won't spend $25 a month in cash; just use the credit cards; but always sure to pay the entire balance every month; sure can't afford their interest rates. /forums/images/graemlins/tongue.gif

gotrocks · Mar 10, 2004

On the way out of the store, I looked on the entrance (on my way out)and it still had the mastercard logo with the others.


I'm with you on this one. Don't want a bunch of CC's and don't want to carry a lot of cash.

When the merchant indicates they accept Master Card then they should honor their posted information. If they decide to quit honoring a card then it only takes a moment to remove the "dis-honored" logo.

BillyP · Mar 10, 2004

Are you sure?

BillyP · Mar 10, 2004

Here's another wholesale company that charges extra for credit cards.

Junkman · Mar 10, 2004

They are not charging extra for credit, but giving a discount for cash that is already figured into the published price. It is legal to offer a cash discount for paying cash. It is not legal to charge more for using a credit card! I know that this is a hard concept for some to understand, but there is a difference. It is also doesn't matter if it is wholesale or retail, you can not discriminate for a credit card or debit card sale.
Now, it is also a violation of the MasterCard merchant agreement to only accept the card as a debit, but not as a credit card. Apparently Walmart is big enough that they are ignoring this. My best guess is that if MasterCard pushes the issue, they are going to try to challenge that part of the merchant agreement in court. This, I assume, is all a well thought out strategy to bring down rates that Walmart has to pay to the credit card companies. If Walmart can shave 1/100 of a percent off of the discount rate, that can amount to millions of dollars to them in just one year.
I just received the credit card statement from my wifes store processing company. We pay a different rate for cards that have the NYCE, PULSE, & STAR NE emblems on them. There is a separate charge for charges that are cleared as debit cards and that rate is different for MasterCard and Visa. There is also a different rate for cards that are cleared as Corporate Cards and that is a higher rate and the rate is not the same for MasterCard and Visa. There is no way to know a Corporate Card from any other card, but you pay a higher discount rate. If a card doesn't scan and is hand keyed, then we will also pay a higher rate for that sale. There is a per item fee of $.05 per item for credit card for every sale and $.25 for every debit card. You need to be a CPA to figure out all the charges that they apply for all the different things. A credit card sale isn't always the same. Two people making the same purchase at the same store at the same time with the same branded card issued by two different banks can cost the merchant a wide difference in processing fees and the merchant won't have any idea until the statement comes at the end of the month. Even then, it will be difficult to determine which sale the fees actually apply to. You just have to pay them and figure them into the cost of doing business. In some instances it is less expensive to accept the sale as a credit card sale and other times it is less expensive to accept the sale as a debit card sale. You just never know.

Junkman · Mar 10, 2004

Please read the printed words "all prices quoted include a 2% cash discount which cannot be earned for credit card orders".
Now, I don't want to be cruel, but a comment comes to mind that I heard once during a trial. The attorney asked the witness after he asked him to read a paragraph of a contract, "Do you understand the printed word, and the spoken language?". How something is phrased is very important. That is why when making some purchases such as a home, you should consult with a lawyer, because no matter how smart you are, you cannot understand exactly what the meaning of the words are unless you are an attorney.

Buck · Mar 10, 2004

RE:

"Found out that Walmart no longer accepts the Mastercard option, only the debit part, which my bank charges a fee for (the mastercard side is fee free but is still debited out)."

That's OK w/me because I no longer accept Walmart. I will pay the extra fee for local businesses.

Buck

Old_Hickory · Mar 10, 2004

( It is also doesn't matter if it is wholesale or retail, you can not discriminate for a credit card or debit card sale. )

I remember when some of the gasoline companys charged a nickel more per gallon at the pump if you paid for your gas on the gas companys credit card.

BillyP · Mar 10, 2004

Come on now, Junkman. You silver tongued devil. We both know what it says but we both know what they mean /forums/images/graemlins/wink.gif

AndyM · Mar 10, 2004

I remember when some of the gasoline companys charged a nickel more per gallon at the pump if you paid for your gas on the gas companys credit card. 

I believe there are still some Exxon stations who still do this. I avoid the ones that have their "Cash" price advertised on the sign out front. It usually means their credit price is higher.

I made the comment once that I had an Exxon credit card and my dad said you can never trust a company that has "double cross" in their name...

dummy · Mar 11, 2004

Or simply shop other places. My debit card works the same as cash at all the other places I do business. The MC part of the card is supposed to work the same as a credit card, except I pay for it immediately. Guess I'm one of the "old school" people that think "CUSTOMER SERVICE" is supposed to mean helping the customer.

Businesses that don't learn from their mistakes, predict their own fufture.

OkeeDon · Mar 11, 2004

Your debit card works the same as cash, as far as YOU are concerned. For the merchant, the debit card has a processing fee. either as a debit card (if the merchant has the debit card processing hardware, such as the keypad for entering your PIN) or as a standard credit card. Your bank account is debited immediately, but the merchant gets his money credited to his bank account approximately 2 days later, less the fees (either immediately or all at the same time at the end of the month, depending on the processing company).

All that said, I love my bank debit card with a Visa logo. If I'm about to make a fairly large purchase, I go online with my bank and check my balance. If it's uncomfortably close, I make an online transfer from the savings account, or I simply decide to defer the purchase. I can use the card to make online purchases as a credit card or local purchases as a debit card. I never have to pay a fee or pay a large monthly bill. At the end of the month, I download my bank statement to Quicken to keep a record of all my purchases. I especially like the cash-back feature of many of the box stores; I typically will get $40 or $50 cash-back when I'm running a little low on "jingle in the pocket"; that's more than enough for my infrequent cash purchases. I rarely have to go to the bank any more, except to make those deposits which are not automatic.

I also take advantage of all the companies that make direct withdrawals to pay my bills. New Holland Credit is one of the few that don't; currently the only check I write and mail each month is the tractor payment. It's at 0% interest, and I resent having to spend $0.37 to pay it -- I wish they would go on automatic withdrawal. Over the life of that loan, it's going to cost me $13.32!

fivestring · Mar 11, 2004

"The MC part of the card is supposed to work the same as a credit card, except I pay for it immediately." 

Not necessarily...
When you swipe your card, it asks, "debit or credit?"
If you choose debit, it comes out of your checking account PDQ.
If you choose credit, it comes out the next business day.

This is how identity thieves work when they steal a debit card. They go shopping and choose the "credit" option when it is swiped.

Boondox · Mar 11, 2004

Good! Maybe this will drive more business to the locally owned stores. Pete

fivestring · Mar 11, 2004

"I rarely have to go to the bank any more, except to make those deposits which are not automatic.

I also take advantage of all the companies that make direct withdrawals to pay my bills. New Holland Credit is one of the few that don't; currently the only check I write and mail each month is the tractor payment." 

Don, the first part is exactly how my wife and I operate now. Mostly deposits.
There is a drawback to automatic withdrawls (drafts)...
Some companies (especially wireless phone service providers) do not stop their automatic withdrawl (draft) when you change companies. You end up having to close that account and re-open another one.
My wife and I see this happen more than most people realize. She works at a credit union.
We no longer use automatic withdrawl (draft) for bills or deal with any companies that require automatic draft.
Now automatic deposits..... love it!

Gatorboy · Mar 11, 2004

( I remember when some of the gasoline companys charged a nickel more per gallon at the pump if you paid for your gas on the gas companys credit card. )

Years (and years) ago, I remember when this first started at the Standard Oil gas station my dad used regularly. My Dad was so upset with this extra charge for using THEIR credit card that he would go to that station once-a-month and put in 0.25 worth of gas. He said, now they have to generate and send me a bill, and then process my payment, which will cost them MORE than the "extra charge" they want to charge me. He did this for months -- I think it just made him feel good.

OkeeDon · Mar 11, 2004

Actually, most of my draft payments are controlled by me. The electric bill, cable bill, and many others have an option where they will not draft until I go online and specifically tell them to withdraw. When we had a mortgage, my wife had it set up as an automatic withdrawal, but when they offered the option to make each payment online, we switched to that, as we often made an extra principal payment. If I don't go online and specifically make the payment, they don't withdraw. The electric company (FPL) also requires me to add my name each time I make the payment as an electronic signature.

We currently use a small, home-town bank in which we purchased a small amount of stock when it opened. As stockholders, almost all the fees they charge are waived -- we don't pay for travelers checks, money orders, wire transfers, etc., and our account is flagged so all the tellers know we are stockholders. We also get a 1/4% discount on any loans, if we did borrow any money. Best $1,000 I ever invested -- makes me feel like a king when I do visit the bank, besides the value of the stock going up! Currently, they do charge a fee to use their online bill paying function, but they are thinking about eliminating it for stockholders. At that point, I will never write another check.

Junkman · Mar 11, 2004

( .................You silver tongued devil. .................. )

I have been called a lot of things in the past, but this is a first. I kind of like that! First I bought the wife the Rolls, then the Jaguar. Since you speak so highly of me, I think that I will buy her something this afternoon as another present. /forums/images/graemlins/grin.gif

BillyP · Mar 11, 2004

Junkman it was meant as a compliment, I assure you.

You could start a new thread "What Should I Buy My Wife (just for the heck of it)"

gws · Mar 11, 2004

( RE:
This is a easy fix. Fill up a cart full of items. Go to the cashier and hand them your MC. When they refuse, walk away. Get several hundred friends to do the same thing every weekend and make your point.

"Found out that Walmart no longer accepts the Mastercard option, only the debit part, which my bank charges a fee for (the mastercard side is fee free but is still debited out)."
)