Possible Changes in Bank Card Swipe Fees

Swipe fees are charges imposed on merchants each time a debit or credit card is swiped when a customer makes a purchase.  It is now averaging close to 2% per transaction, according to the National Retail Federation.  This fee is costly for the merchant, and drives up the price of merchandise for the customer.  It is now costing an average family an estimated $427 yearly.  The fees have tripled since the NRF started tracking in 2001.

A Swipe Fee Amendment is being considered in the financial services reform legislation now before Congress.  It would require "reasonable and proportional" swipe fees that take into account banks’ actual costs for processing card transactions, recognizing that paper checks drawn on the same accounts are paid at face value.  The amendment would also set minimum purchase amounts for credit cards, and make it easier for merchants to offer benefits to customers who don’t use cards for payment.

"Paying with plastic" is a convenient service that most people would not want to be without.  Costs associated with this service, however, have been disproportional to the service rendered.  Perhaps the new legislation will correct this problem.

If you have questions about your POS debit and credit card processing, CCS is here to answer them.  Call us at 425-672-4806 or email us.

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