Comments about ‘Credit-card fees hurting businesses’

Still, often businesses accept credit card payments and refuse checks. I suppose a debit card might be the answer.

The article's headline seems to indicate a greater concern for businesses than for customers, who are mentioned secondarily in the article. This created an impression that customers exist for businesses and not the other way round. This I never find persuasive; it's a little like: spend money and help out the economy rather than save money and help your family.

In the end it's up to businesses to reject credit cards as a very few do, or to persuade customers to go with debit cards or cash for their own good, the benefits of avoiding debt. I don't think I am alone in being primarily concerned for the wellbeing of my own family, and little concerned about either Macy's or bankers.

I don't feel sorry for these retailers. As the author pointed out, the fees are passed on to the consumer. A creative retailer might try giving discounts for customers who pay with cash, checks or debit cards. That way both the retailer and the cunsumer benefit.

There are simple free market principles that will bring competition back and they don't involve laws and regulation. Instead of hiring a lobbyist, use smart marketing to fight back.

The most important statement in the article is:

Ultimately, it is consumers who pay the $48 billion to the credit-card companies in interchange fees, as retailers pass them along in the price of products.

When laws, regulations, fees, etc. apply to all members of the Capitalistic system they give no favor to any one group. As I understand it the fees apply to all.

If the merchant wishes to gain an economic advantage over the credit card company, he can offer a discount for cash or even set up his own credit card.

The volumes of credit cards available would indicate that the free market is in operation for the services provided by the credit card companies. If not, and there is price fixing, the government should step in and use that dreaded word Regulation.

In this economy, consumers are using their credit cards more and more everyday for their daily needs and purchases. As business owners, you DO need to be "Creative" and either add the cost of processing fees into your product or just add it in as a legitimate business expense. Cards are the way of the future and are not going anywhere, anytime soon. I say this, because I am a successful business owner with over 13 retail locations in Utah and wouldn't be in business if I couldn't accept credit cards. Don't fall for low rate teaser rates that reel you in and take advantage of you. Do your homework, if you have a issue with rates, service, etc then take your time choosing a company and go with one that will give you one on one customer service. As I always say, "time is money".

Regards,

Utah Business Owner

I just closed my retail business and I would say this is one of the reasons I did. It cost us $2.00 on every credit and debit card purchase that was branded with Mastercard, Visa, Discover, American Express. In fact Discover and American express charge more. Think of it this way...a $10. purchase cost me $2.00. I got to where I only took cards for purchases over $15.00. I'm seeing a lot of businesses saying they are no longer taking Discover or AMEX due to this reason. One more Greedy way Corporations kill the small businessman!

Credit card companies are killing both small businesses and customers with their processing and interchange fees. It can cost our small business $0.50-1.00 per transaction depending on the card, and about $0.50 per debit card transaction. It doesn't sound like much, but when customers start to buy lots of little items like candies, cheap things about a $1-2 dollars, etc. we actually *lose* money on each transaction, which is worse than having no profit. Due to pricing restrictions, some items only have a slight mark up, meaning maybe 10-30 cents of profit per item. And people have a fit if they're told they can't use a credit card on a small purchase. I cannot recount how many times I've argued with high school and college students about not accepting credit cards for candy or ramen purchases. I've worked for years as a cashier and manager. Is it so hard to use cash or a check? It feels a bit numbing to know that hundreds of dollars from sales can be gobbled up just by processing fees. Quickly, this can kill a small retail business.

ok- if it's such a problem then have a cash only business- kind of hard to sell to the masses that way huh?

I am sorry small businesses -- if you want my business, you are going to have to accept my credit card unless you give me a discount for paying in some other way. And the percentage of the discount will need to be greater than the percentage rebate that the credit card company provides to me. And if you end up going out of business, fine. Someone else will take your place that has a better business model.

I am a small business owner in arizona. 12 months ago we went to a cash only policy. We were able to reduce our prices by 10% on average. The first couple of months our sales were way down and we lost a lot of business. Later as the word got out about our prices we started to get more and more customers. even some old faces who never used cash started coming back to the store. I am happy to say that we have been successful as a cash only business. Good luck to all small business owners.

It would be nice if the credit card company refund our fee when the customer return item(s) to store. We are getting stuch credit card fee that charged when purchased. I have heard some merchant charge
for refund fee. This is not fair for small business.
I have already customer if they don't pay with check
or cash.