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Finding out about Interchange Fees

  • Thread starter Thread starter shunter
  • Start date Start date
S

shunter

If that's a new term to you, I highly recommend checking out http://unfaircreditcardfeees.com

I’d assumed that credit card companies made their profit from interest charges and late fees, so I wondered why a small business owner would care how much you charged on your credit card. That's until I learned about interchange fees.

With the already small profit margin on inexpensive goods, the addition of interchange fees when a credit card is used ends up costing the merchant money. As the credit card companies get more powerful, it’s blatant how they forbid merchants to impose minimum charge practices. Apparently the credit card companies are only concerned with milking small business owners for as much as possible.

Interchange fees aren’t just a merchant issue, they are a consumer issue too. I just learned about credit card ‘interchange fees,’ a hidden fee that credit card companies collect every time you use plastic and sign for a purchase. We all pay this fee without knowing it – to the tune of $30 billion in 2005.Remember back when gas was cheaper if you paid by cash? Now we have the excessive interchange fees built into the overall price that all must pay. All I’m asking for is a little disclosure. The credit card companies are hiding behind these fees. What are they afraid of?

What do you think?
 
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