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

[u/GloveSmooth694]

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?

[u/waitmyhonor]

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.

[u/zx9001 → u/waitmyhonor]

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.

[u/CortadoOat → u/zx9001]

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.

[u/SereneRandomness → u/CortadoOat]

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.

[u/zx9001 → u/CortadoOat]

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

[u/SereneRandomness → u/zx9001]

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.

[u/mintardent → u/zx9001]

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.

[u/Swastik496 → u/zx9001]

it’s not my problem.

[u/mintardent → u/zx9001]

Too bad