Now that merchants are free to impose a surcharge on customers paying by credit card, I wonder how many more airlines will charge for paying by CC?
A few years ago I was in London and I came across an article in magazine that said British Airways charged a £4.50 ($7.11) flat fee for using a credit card when booking for a ticket. Also, Eurostar (the high-speed railway service connecting London with Paris and Brussels) added a £4 flat fee. I even took a screenshot of the article to remind me to revisit my investment in Visa. Here it goes, I thought, another investment that will bite the dust as I reasoned people will use less and less credit cards knowing they will have to pay more.
However, as procrastination is my middle name and I still have not been cured by the buy and hold virus (read somewhere that only billionaires like Gates and Buffett can now afford to wait 20-30 years for their investments to make money) I did not do anything.
And the stock has doubled in value since I bought it!?! It is the only stock of a big company that I own that has doubled ( a short post about it on my ‘investing’ – let’s call it like that – blog V is from Victory and from Visa, V is the ticker symbol for Visa).
Now the question is: Will airlines add now a Credit Card surcharge? They could and they might go away with.
Also, somehow related to the CC charges is a company Dwolla*, a United States-only e-commerce company that provides an online payment system and mobile payments network. I read about it some time ago and then nothing. It does not seem to have taken off even if the offering is very compelling.
Cost to send money: $0.00
Cost to request money: $0.00
Cost to receive $10 or less: $0.00
Cost to receive more than $10: $0.25 (or invite friends and earn transaction fee credits)
*Every year, community businesses fork over around $50 billion to accept credit and debit cards. That’s changing with Dwolla. Built on tried and true industry standards and cutting-edge technologies, Dwolla is the nation’s lowest-cost payment network for merchants. By paying with Dwolla, you can help local business owners actually double their net profit margins.