Merchants feel let down by credit card swipe fees
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
The other day Chase announced some changes to their cashback credit card lineup, introducing the Chase Freedom Flex credit card. The new Mastercard credit card boasts no annual fee, 0% intro APR on purchases for 15 months, and a variable 14.99% – 23.74% ongoing APR. Applications for the offer are supposed to be accepted starting […]
While the coronavirus is in no hurry to calm down, people continue to look for any means to reduce costs so that not be left without means of subsistence. If you are an owner of the Chase Sapphire Reserve credit card, there is some good news for you that you may have missed. As part […]
Thursday, January 30, 2020, all American Express Delta SkyMiles credit cards came out with renewed annual fees and/or benefits. Amex announced the updates back in September, but they were to come into effect only at the end of January. The changes apply to both consumer and business Delta SkyMiles credit cards. The first alteration is […]
Using credit cards, we constantly have to encounter different kinds of fees. So, during the 2019 U.S. News Consumer Credit Card Fee Study, hundreds of credit cards were examined in order to investigate annual fees, cash advance fees, foreign transaction fees, late and returned payment fees, and balance transfer fees more closely.
On October 20, 2019, 9 powerful tornadoes swept through North Texas. Although, fortunately, they brought no casualties, many homes and public buildings, including schools, stores, and business centers, were damaged or even completely destroyed. More than 90,000 local residents were left without electricity. The damage is estimated at about $2 billion. To aid individuals and […]
