Sunday, June 12, 2005

Why you should be concerned about interchange fees

Why merchants should be concerned:

Every business that accepts credit cards should have a seat at the table to help design and modernize the future interchange system. The most recent credit card associations' rate increase on April 1st dared merchants. 30 Minute Photos Etc. responded and we hope you will too. Now with nearly one hundred separate fees, including a new set of fee increases for affinity cards (frequent flyer and reward cards), cardholders are not the only ones being taken on a ride. These monstrous interchange charges are a hiden tax on consumers as well.

Interchange fees are just a way that credit-card companies squeeze merchants to enhance their revenue stream. There is absolutely no need for these fees to be so high, and without anything to control them, the banks and the credit card companies continue to find ways to escalate the fees.

(written by Mitch Goldstone and Carl Berman -