Is Every Credit Card Swiped At Your Business Created Equal?

Visa sent me an ‘upgrade’ to my gold aeroplan visa card to a black visa infinity card a few months ago. So I called them recently to ask about it.  I told them that my current card doesn’t expire till sept 09, do I have to activate this new one?

‘yes, mandated by visa’.  Then the Service Person talked about the new benefits and no extra charges.  So I asked: “Are you saying ‘no extra charges now because I have to switch, or no extra charges next year and beyond too?”You can guess the answer.

BTW: the benefits had to do with travel insurance, not something useful for day to day usage.

This is the card that will cost a business owner .5%-1+% more in Payment Processing fees to process these cards, and from the same consumer that had the other card last year.

Corporate cards and certain branded cards will cost business owners more to process.  It is against merchant account agreements between card processors and merchants for the business owners (merchant) to pass the cost along to the business owners’ customers.  I still don’t understand why you can surcharge for debit and not for credit cards- oh yeah, because people who wake up and not use it, or will they?

What a crazy world business is?  Well, it is what it is.  What can you do, if everyone is going around charging plastic and buying stuff from businesses with money that they don’t have?  You can’t have a decent business these days without debit and credit card acceptance!

The only thing you can do is get the information upfront, so you know what to expect.  The other option is get promised the moon and get frustrated and disappointed long-term.

Here’s a great article detailing this sneaky strategy by credit card processors to reap outrageous increased profits for the exact same service on the backs of small business owners and consumers across Canada.

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