DTI bans surcharges on credit card sales

Posted on October 27th, 2006 in Unsorted by Abby

My oh my! I stumbled on this article DTI bans surcharges on credit card sales.

Okay fine, “credit card buyers are being discriminated against the cash buyers” Merchant are not benefiting from the surcharges. It’s the bank who are benefiting from it! Bank charges high fees on credit card transactions. Most merchants can’t accomodate the 5-6% fees charges by the bank. Now, if DTI wants to follow price tag. Do you know what will happen? Merchant will definitely increase prices to include the credit card charges! It’s like you are now encouraging Filipino shoppers to use credit card. Anyway, the price is the same.

“Different Fees by merchants” - well bank charges fees differently based on risk rating of the merchants. I think department of trade and industry should also be fair to merchants. I wonder if prior to imposing the ban the DTI had a meeting or talk with PRA (Philippine Retailer Association)

2 Responses to 'DTI bans surcharges on credit card sales'

Subscribe to comments with RSS or TrackBack to 'DTI bans surcharges on credit card sales'.

  1. kid said,

    on November 1st, 2006 at 2:31 pm

    but that doesn’t stop merchants from giving discounts for cash purchases. there are shops that do that. the price on the tags is the card price. if you opt to pay in cash they give a discount which isn’t against the law i presume.

  2. Abby said,

    on November 3rd, 2006 at 10:46 pm

    hi kid,

    you’re right. point taken. merchant can opt to give discount for cash buyers.

    so i guess, it goes the same merchant will add the surcharge to the price tag. and will just note that if you pay in cash there will be 5% discount. hehehe

    abby

Post a comment