Merchants feel let down by credit card swipe fees

Wednesday, June 22nd, 2011

Every time you decide to pay by a credit card for the purchase you make at a retail store, it is not just you, but also the retailer who needs to pay a small fee to the bank whose card you use. While retailers are aware of the magnitude of this problem, customers are the ones who stand to lose since they are not aware of it. The swipe fees that businesses have to pay ends up as extra charges of the customers sometimes. However, when the charges are high, the retailers also have to face the brunt and pay a part of it.

The transaction fees for every transaction made using the credit card is 44 cents, irrespective of the overall value of the bill. Banks that issue credit cards make millions of dollars each month as a result of the revenue collected from these fees. And in contrast, businesses lose out on a part of the profit because of the high swipe fees they have to pay to the bank.

With an increasing number of customers preferring to pay by credit cards each day, the problem does not seem to cease anytime soon. The only respite is to lower the swipe fees that banks charge retailers. While retailers are fighting tooth and nail to get the fees lowered, banks on the other hand are leaving no stone unturned to ensure this does not take place as it will cost them a huge amount in terms of revenue.

Latest Credit Card Fees News

Tuesday, October 25th, 2016
For people with limited credit, bad credit, or no credit history at all, secured credit cards are a huge help. They let folks who might otherwise have trouble getting a credit ...
Thursday, August 13th, 2015
MasterCard is going to move fraud protection to the next level. The company will start a test of their new program which approves online purchases with a facial scan.
Monday, January 12th, 2015
Have you ever thought about what metamorphoses your credit account undergoes when you miss a payment? Here are several things that can happen to your credit card account in case ...
Tuesday, July 15th, 2014
Today most consumers understand how to avoid their credit cards having a negative effect on their credit scores. They know that making every minimum payment every month on time, ...
Thursday, May 29th, 2014
There were times when credit card companies could increase your interest rate or change your payment due date without warning. Of course such changes led to late payments or ...
Best Credit Offer
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 All Rights Reserved.

* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.