FlyerTalk Forums - View Single Post - Surging credit surcharges in the US (2019 - 2023)?
Old Sep 22, 2019, 10:32 am
  #5  
mia
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Originally Posted by EasternTraveler
..... accept it as a cost of doing business......
This is what they have done for decades due to the prohibitions on surcharges. Every cost of business is passed through to customers, which means everyone is paying card transaction fees.

For large merchants, allowing surcharges is not about collecting them, it's a structural change which allows them to negotiate lower fees because they have the option to pass through variable fees from high priced networks. Instead of announcing that they will "no longer accept" a particular type of card, the merchant can announce that there "will be an X% surcharge to pay with" those cards. It will transform negotiations between merchants and networks, and while there will be some public grandstanding much of it will be invisible.
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