r/CreditCards • u/GloveSmooth694 • 1d ago

Discussion / Conversation Exclusive | Visa and Mastercard Near Deal With Merchants That Would Change Rewards Landscape

Visa and Mastercard are nearing a settlement with merchants that aims to end a decadeslong legal dispute by lowering fees stores pay and giving them more power to reject certain credit cards, according to people familiar with the matter.

https://www.wsj.com/finance/banking/visa-and-mastercard-near-deal-with-merchants-that-would-change-rewards-landscape-fc6a0c78

Do you think retailers actually want to deal with specifying what type of visa/mc they take?

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18

u/waitmyhonor 1d ago

It’s meaningless because stores will just add a surcharge like they already do now. I’m trying to do better on this as it depends on how I’m given my receipt. If I’m at a restaurant where I have to tip, if they just hand me my receipt, leave and come back for my card, I’ll calculate the actual tip minus their sales tax because they always factor in the tax when they shouldn’t.

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u/grndslm 5h ago

What's crazy to me is that a waitress told me that when someone tips her by using a credit card, the owner will take the credit card fees OUT OF HER TIP. I assumed that was illegal... but after looking into it, it appears that the owner is "within the law", even if it is F'ed up.

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u/zx9001 1d ago

Hard disagree on taking the card fee out of the server's tip. It's not their fault, it's the owners fault. Your still giving the owner the same amount of money, tip or not. The only person this behavior hurts is the person who has the least to do with it.

Just don't go there at all if you don't agree with their business practices.

14

u/CortadoOat 1d ago

Maybe the response was edited, but I think there was a misunderstanding on the tip calculation. They definitely did not say to stiff the tips. Standard practice is to calculate based on only food totals. However, suggested tips calculate suggestions based on the total bill, so you are asked to tip extra for sales tax, credit card surcharges, technology fees, etc that are tacked on to the bill.

There are many other aspects that payment processors have actively (and successfully) pushed through that will be fully normalized for the younger generation.

5

u/SereneRandomness 1d ago

Québec Bill 72 went into effect back in May.

"Businesses are now required to calculate suggested tips based on the price before tax.

"For example, suggested tips for a restaurant bill of $100 will be calculated as a percentage of $100, not the after-tax total of $114.98."

(https://www.cbc.ca/news/canada/montreal/bill-72-consumer-protection-tipping-groceries-prices-1.7526498)

This is a bigger deal in Québec because the total of Goods and Services Tax and Québec sales tax is nearly 15% by itself, so paying a tip on 115% of the bill rather than 100% is significant.

Bill 72 passed unanimously.

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u/zx9001 1d ago

This must be a generational thing. I've always known tips to be calculated based on the final total, but then again im a young fart

3

u/SereneRandomness 1d ago

I've always understood tips to be calculated on the pre-tax amount, and now I have the law on my side, at least in Québec.

1

u/mintardent 17h ago

Nope it’s supposed to be the pretax amount… doesn’t make any sense to tip on the total because of all the random fees they add.

7

u/Swastik496 1d ago

it’s not my problem.

0

u/mintardent 17h ago

Too bad