Friday, June 16, 2006

5-Cent Interchange Fees? (

According to Digital Trends, vending machines and "micropayments" are the next growth area in credit card acceptance. This business model for transacting payments under 5 dollars can be achieved with flat interchange fees of 5 percent. When someone charges a dollar for a can of soda at a vending machine, the interchange fee would be but pennies. So, why is it that retailers can be forced to pay upwards of 25-cents to transact the same one-dollar order at the sales counter?