The goal of this credit card interchange blog is to draw attention to this issue that affects nearly all merchants and consumers.
Part of this informational effort includes pending litigation to reform a system that is unfair, discriminatory and is a hidden tax on consumers. The credit card imposed interchange fees are added into the cost of doing business. Those without access to credit cards - typically consumers with lower economic means - end up paying more. While they pay in cash, the price for products and services are the same for cash or charge card. Merchants pass on these fees equally to credit card and cash customers.
The interchange rates therefore discriminate against economically disadvantaged, especially people within inner-cities where cash is predominantly used. These interchange fees are a hidden tax on the poor; an example is a large convenience store chain which pays upwards of $30 million a year in credit card interchange fees, yet nearly 40% of their customers pay cash.
