Small businesses “coping” with increasing credit card fees
Scott Colwell, the owner of the Certainly Cinnamon, says that it is not just the consumers, but even retailers who are bearing the brunt of the ever increasing fees on credit cards. Speaking during an interview on Thursday, he said that he pays a staggering $1000 a month towards credit cards fees.
In addition to Certainly Cinnamon, Colwell is also the owner of Quality Inn’s Wooden Door Bistro that is located close to Halifax Stanfield International Airport. His restaurant also caters to parties and weddings, but he does not accept payments for these orders through credit cards. Justifying this, Colwell says he prefers not to accept credit card payments for large orders because of the high fees they attract. When saved, this amount can be channelized towards other business improvement opportunities.
One of the biggest disadvantages is that small business credit cards are not covered under the rules and regulations of the newly implemented CARD Act. Hence, there is no limit on the interchange fee that the banks levy for purchases made using these cards. This not only affects small business owners who use the card, but also the merchants who accept these cards for transactions. The fees levied for the transaction varies from one lender to the other and sometimes can be very high.
Most retailers are now refraining from accepting small business credit cards for billing purchases. This leaves business owners with no option, but to pay either through checks or cash.
Latest Credit Card Fees News
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 […]
Do you own a credit card with a variable APR? If so, in case you attentively read your monthly statements, you probably noticed slight changes in interest rates last time. But in case you noticed no difference yet but have already managed to get upset after reading the previous sentence, take it easy! The changes play into your hands since the rates have dropped!
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.
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.