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
Recently Discover shared results of their new online survey. The survey was conducted from February 12 to 17 by research company Dynata on behalf of Discover Financial Services.
There are four major credit card networks: Visa, Mastercard, Discover and American Express. These 4 networks differ basically in two things: how and where the person owning the card can use it and the benefits the network offers.
More and more people are figuring out that the best way to avoid credit card fees and unnecessary bank charges is to use a prepaid card—otherwise known as a general-purpose reloadable prepaid card. These cards are increasingly popular among all demographics, including Millennials, small business owners, and people who are self-employed.
Good news for entrepreneurs and small business owners: there’s a new rewards credit card that gives unlimited cash back and has no annual fee.
Most elite travel rewards credit cards charge steep annual fees. But a new luxury credit card from HSBC is offering cardholders free membership, in addition to a number of other valuable perks. The HSBC Premier World Elite Mastercard credit card comes with travel perks including rewards on airfare and hotel spending, as well as rewards on train fare and ride-sharing costs with Uber and Lyft.