New banking rules displace existing credit and debit... - Other News


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » New banking rules displace existing credit and debit card rewards programs

New banking rules displace existing credit and debit card rewards programs

New banking rules displace existing credit and debit card rewards programs
The content is accurate at the time of publication and is subject to change.

Customers generally love incentives and rewards programs such as air miles, cash, or other incentives. However, the merchants are the ones that are penalized due to the new rules.

Due to the revision in rules, there could be a shift in power to retailers from banks and that may bring about big changes in the whole shopping experience, as well as, rewards cards.

These battles over the credit cards and debit cards have a huge impact on the US Bank, Best Buy, and Target. The implications also seem to extend to small business operations like the ‘R’ Skyway Store, where it is only cash and checks. They don’t accept credit cards or debit cards at this convenience store as they claim that the card swipes cost them too much. Nancy Leitch, as well as her husband Michael, don’t accept credit cards or debit cards as they will have to shell out huge fees on each swipe. They feel they will have to raise their prices by 5% if they have to offset the costs involved in swiping the plastic. This would inadvertently be passed on to their customers. Hence they have decided not to accept these cards. Although other merchants accept debit as well as credit cards, they are frustrated about having to pay fees to the banks each year, that run into tens of thousands of dollars.

President of Minnesota Retailers Association, Brian Steinhoff, states that these fees are onerous, but retailers have to accept them as they have no choice. He also states that this fee is transferred onto the customer like all the other charges and the customer pays for it.

However, the revisions in the future could change all of that. Now there is a suit that is still pending with the Justice Department with MasterCard and Visa. When the approval comes through, merchants will be able to offer discounts to customers who pay in cash or other cards that do not come with high fees.

There is also another proposal by the Federal Reserve to reduce fees to 12 cents, for a single transaction. Banks are however, unhappy with the cut in fees.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Sephora’s Frist Credit Cards Coming Soon
Sephora’s Frist Credit Cards Coming Soon

Posted: March 22, 2019

People who shop at Sephora maybe happy to find out that during the coming months the beauty chain will be launching three new credit cards – the Sephora Credit Card, Sephora Visa Credit Card and Sephora Visa Signature Credit Card. This is… Continue reading

New Categories for Chase Freedom Cardholders
New Categories for Chase Freedom Cardholders

Posted: March 21, 2019

Four times a year people with the Chase Freedom Credit Card can earn enhanced rewards in key areas, and they have just announced the new categories. This coming quarter cardholders earn 5% cash back when they shop for groceries or at a… Continue reading

Mastercard Set to Buy Ethoca
Mastercard Set to Buy Ethoca

Posted: March 20, 2019

Credit Card security is something that everyone is mindful of these days, and in keeping with this theme, Mastercard is set to buy Ethoca, a company that specializes in helping both retailers and card issuers detect and resolve digital… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!