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Consumers Could Pay More if the European Commission Caps Credit Card Fees

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The European Commission (EU) has threatened to cap the credit card processing charges that banks impose on businesses and shops. In turn, the banks have threatened to add higher fees and other charges onto cards used by consumers. When it all finally boils down, it’s likely that UK households will take another hit in their billfolds.

As it stands now, credit cards like MasterCard and Visa charge businesses a 0.9 percent charge on all credit card purchases. This credit card fee costs businesses 850 million annually. The charge in debit cards is 0.2 percent. The EU wants to set a flat service charge fee of 0.3 percent.

On further examination, this matter gets more complex. The fees that businesses pay to banks are known as interchange fees. These fees cover the bank’s costs of processing credit card transactions such as fraud insurance and administration. Shops and businesses give banks different interchange fees based on size. Big retailers generating tons of sales tend to pay a smaller interchange fee. A mom and pop store will pay a larger interchange fee. These fees can vary from 2.5 to 0.1 percent.

The European Commission (EC) estimates that this fee payment market has a value of 112 billion. The EC is laying out the argument that the credit card sector is expensive and fragmented. Retailers tend to agree with the EC opinion. The British Retail Consortium (BRC) has been hammering the EC for a decade to end what it calls excessive and anti-competitive fees for processing credit cards. The BRC argues that consumers will benefit via lower prices if the fees are capped. At present, retailers eat these fees and charge them back into the business.

“We’re delighted with this landmark proposal,” said Helen Dickinson, the BRC director. “Capping these excessive and anti-competitive fees will support the UK retail industry by 362 million a year, boosting the industry’s ability to invest and innovate while continuing to deliver lower prices and value for customers,” Dickinson added in an interview at Daily Mail.

MasterCard Europe contends that if this EC cap goes through, consumers will be hit with a 25 annual fee per credit card. Marion King, president of MasterCard, warned that lower fees will result in less income for issuing banks, and that will force banks to charge consumers for using cards.

The EC fee proposal will force credit card companies to separate their payment card schemes from the business division that processes transactions. Essentially, this would destroy the current credit card model. The Financial Times (FT) describes this matter as the final battle in the long war between EU bureaucrats and payment providers. The Commission proposal calls for a 0.2 percent cap on debit transactions. Credit card fees would be capped at 0.3 percent. The EC estimates that EU debit card fees will be cut to 2.5 billion from 4.8 billion. Credit card fees will tumble to 3.5 billion from 5.7 billion.

Flexible Payment Processing

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It is very important for every company and business to remain relevant with today’s technology. If you own a business, you can increase your profit and client satisfaction by signing up for a merchant account and use one of our free free credit card terminals. Most consumers enjoy making payments with credit cards. Since they enjoy using credit cards for most transactions, it is essential for your business to have a merchant account.

A merchant account allows you to accept credit card payments through the use of credit card processing equipment. At Total Merchant Services, you can choose from several credit card processing machines. They offer a free wireless credit card machine when you sign up for a merchant account through them. These units work using a radio signal, and units that allow you to use your smart phones to swipe credit cards. It is important to utilize the services of a reliable merchant account company. Total Merchant Services is one of the most reliable and renowned providers of merchant account services and they will help you increase the productivity of your business.

Total Merchant Services is recognized and respected by many businesses for providing the most secure and reliable merchant account services. Whether you desire credit card processing services for your retail, wireless, mobile, or internet business, Total Merchant Services is here to assist you. They provide free credit card equipment that allows you to accept payment from your clients at low rates. With a merchant account, you can accept payments from all major credit and debit cards like American express, Visa, Discover, and MasterCard.

If you are looking for a reliable service provider that will help you to accept credit cards through credit card machines or a payment gateway, then Total Merchant Services is the company for you. Total Merchant Services has an A+ rating with the Better Business Bureau, and was also voted as Independent Sales Organization of the Year at the annual ETA conference. The company provides Authorize.net for businesses who wish to use an ecommerce payment gateway. With this excellent program, you can run transactions on your website or key them in manually. By using this trusted and effective program, you can provide your clients with safe and secure credit card processing services.

Total Merchant Services’ top priority is offering the best merchant account services to their clients.

If you are interested in obtaining their services, visit their website, www.cardpay.net, today.

History of Accepting Credit Cards

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By 1969, most independent bank charge cards had been converted over to either the BankAmericard or Master Charge cards.

Eventually, charge card issuing and processing became too large of a task for the banking industry to handle. That is what lead to the emergence of credit card associations such as Interlink Association, Western States Bank Card Association, and National BankAmericard Inc. Current associations include Visa and Master Card.

The next major changes in the credit card industry involved streamlining transaction processing and reducing credit card fraud. Electronic authorizations were developed in the early 1970s which allowed retailors the ability to check a customers credit limit 24 hours per day.

By the mid 1970s, the credit card industry started exploring international waters, but had some difficulty because of the name association; “America” in BankAmericard, for instance. This lead to the renaming of BankAmericard to Visa and Master Charge followed suit by changing its name to Master Card.

By 1979, electronic processing was improving. Electronic dial up terminals and magnetic strips on the back of credit cards allowed retailers to swipe the customer’s credit card through the dial up terminal, which accessed issuing bank card holder information. This process gave authorizations and processed settlement agreements in a mater of 1-2 minutes. An added benefit was paper reduction.

The early 1980s, gave birth to the first Automatic Teller Machines (ATMs), which allowed consumers access to cash, and to make deposits, 24 hours a day across our nation and in other countries as well. Account users could obtain cash in many different currencies.

Since its existence, Visa has been a leader in credit card innovation. Because of this they have emerged as the world’s leading credit card association with over 1-billion cards being issued, and carrying over 50% of all credit card transactions conducted world wide.

“Visa (International) is a “not for profit” organization comprised of over 40,000 member Banks and MasterCard is a for “Profit” company who issues credit cards and sets and maintain rules for credit card acceptance and processing. They are both run by board members who are mostly high-level executives from their member banks and industry heavy hitters.”

There are five leaders in the credit card industry: Visa International, MasterCard, American Express, Discover and Diner’s Club. There are others trying to penetrate the industry like check processing companies, Euro Card, JCB and ATM companies but credit cards still account for over 90% of all e-commerce transactions !

Credit Debt Help-How To Dig Yourself Out Of Your Hole

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You need credit debt help when you feel like you are in a financial prison. All of a sudden, you can no longer do your normal activities such as go out to eat, pick up a new wardrobe, or even go to a movie without having to worry about increasing your debt or using cash that could have been used to pay down your credit card bills. Before you can figure out how to get out of credit card debt, you have to understand the reason why you are in your current situation. Most financial planners and consultants tell you that there are major causes why individuals fall behind in paying their bills. Emergency situations do occur in our lives. If you are currently in debt and an event such as finding out you have cancer, your spouse demanding a divorce, or getting sued complicated the situation. The problem isnt how you spend your money, it is more on where can you get additional funds to finance your monthly bills. A drop in income brought about by losing your job or lower business profits without a corresponding decrease in your fixed expenses. If you avoid changing your lifestyle because you believe that another job or a pickup in the market is just around the corner. In the meantime, you either spend your savings, investments or start building credit card debts. Overspending may be due to living beyond your means or simply lax financial oversight. You dont realize how high your expenses are relative to your household income. The only way out of this credit card debt situation is to go from a high standard lifestyle to modest standard of living. Credit debt help may help you plan for your next move. Maybe you bought unnecessary items while shopping or took too many vacations. Whatever happened, until you figure out how to spend less than what you earn, you are trapped. You cannot escape your ultimate fate you and credit card debt are going to be partners as long as the banks are willing to support you and you continue to be their slave by your own free will. Credit debt help is available to you if you like to extricate yourself from the grips of this problem. The first step is to pay off your high interest credit card debt then stop the blame game and accept responsibility for your own financial life and take control over your credit card debt. Seek for the assistance of experts if you feel that you cannot follow the do it yourself procedures available. If you carry excessive unsecured debt, your main three options are: 1. A loan. 2. Credit counseling service or 3. Debt elimination. If you can qualify for a debt consolidation loan and you have the disciple NOT to use your charge cards again, then this option is a good choice. Credit counseling will pay-off your debt in a reasonable time (about 5-8 years). However, if you miss a payment, you will be booted from the program. Also, your credit will be negatively affected. Keep in mind credit counseling has about a 75% drop-out ratio. Your last option is debt settlement. This is the quickest method of debt elimination. Your debt should be paid-off in about 2-4 years. Your monthly payment is also reduced. Your credit will be negatively affected so a credit repair program is recommended. Making the decision to get credit debt help is the first step of debt elimination. Good luck to you!

Go Green With Credit Card

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Barclaycard are the latest company to offer a green product to its growing ethically concerned customers who want to lower their carbon footprints. They have announced that their new eco-friendly credit card will be called Breathe. To ensure its green credentials the card is made from PETG which is the greener alternative to plastic. There will also be no paper statements, they will offer recycling for expired cards and all advertising for the Breathe card will be done online. The card offers customers discounts and low rate borrowing when green products are bought. In addition to this Barclaycard will give 50% of after tax profits (estimated at 1 million in its first year) from the card to environmental projects that are dedicated to reducing carbon emissions.

Barclaycard have also recently, along with eight other market leaders B&Q, British Gas, Marks & Spencer, Sky, Tesco, Royal & Sun Alliance and O2, launched a government backed campaign titled Were in this together which aims to help every UK household cut their carbon emissions by one tonne over the next three years.

Barclaycard isnt the only lender to be catering to the growing demand for ethical borrowing. Virgin have also launched a green credit card and claim that they have beaten Barclaycard in the green stakes because their card is bio-degradable and they also promise not to just pay lip-service to the environment but offer on-going dedication to environmental issues. The Co-operative Bank is generally regarded as being the most ethical with all their financial services offering environmental incentives.

The growing popularity of green financial products is encouraging more people to consider an ethical approach to their finances. Not only are they looking at their own environmental positions but they are also showing concern at what their banks and financial companies are doing for the environment.

HBOS, the Abbey and the Yorkshire Building Society have both announced plans to introduce green financial products and you should expect many more credit card lenders following suit.