With the current credit card reform bill expected to be made a law, quite a few changes may be in order say experts. Here`s the heads up on what you need to look out for in the coming times should it get passed.
No more ban on minimum credit card purchase requirements
Many customers find themselves quite annoyed when at a store they cannot bill using their credit card unless the amount is over a set limit. What the fact behind it is that large Credit card companies like MasterCard and VISA do not allow merchants to institute such minimum amounts. While the large merchants are in agreement with this smaller ones escape notice, but following the passing of the bill, there will be a purchase minimum imposed on all retailers however the imposed minimum amount will not be over $10. That means everyone is going to be carrying $10 bills around more often.
More limit on college tuitions being paid through credit cards
Just like the bill gives merchants permission to impose a minimum payable on the credit cards for billing, the colleges all over the state can impose the maximum amount that can be paid towards the tuition using credit cards. The bill would override agreements between colleges and credit card companies. While colleges may accept payment in credit for goods and services, there will be a limit on large amounts being charged towards tuition as this creates a large interchange fees being paid by the student to the credit card companies later. For consumers however this means they cannot score on those points they get paying college tuition through credit cards on frequent flyer miles.
Government agencies to limit credit card charges
Just like colleges would want to do away with paying additional fees on large credit card purchases, the government is also paying at least $433 million in fees relating to credit and debit purchases totaling over $23 million. These cards are drilling into government finances. Thus the new law will allow the government to set a limit on how much can be paid to the government through credit cards.
More discounts for non credit card payments: Merchants now have a new offer through the bill. It sets it down that they can offer discounts for customers making payments using debit cards, checks or cash rather than credit cards. Credit card companies maintain this provision will not mean much.