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Credit card bill fees deserve passage
Published Tuesday, October 20, 2009
When it comes to credit card swipe fees, Americans are getting Third World treatment.
U.S. consumers and businesses pay markedly higher charges than those in other developed nations when it comes to purchasing with plastic, according to a report by the Merchants Payment Coalition. ...
Every time a consumer uses credit, roughly 2 percent to 3 percent of the charge goes to banks or other payment networks, which set the fees at rates that often vary from country to country. American swipe fees are double those in the United Kingdom and New Zealand, and four times those in Australia, the merchants contend.
The beauty part for the credit card issuer is that it scores twice — once in a transaction fee it gets from the merchant and again with an interest charge to the customer. In 2008, those charges produced an estimated $48 billion for American banks, an average of $427 per household, the merchant coalition claims.
The swipe fees per transaction are small but have almost tripled in amount over the last decade. ...
Lawmakers, including Sen. Richard Durbin, D-Ill., have introduced legislation that would impose more restrictions on such fees.
That’s a good start, but it’s not enough. The bills are stuck in committee. They deserve a better treatment, as do the merchants and consumers burdened by these too-high charges.
The Star-Ledger
Newark, N.J.
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Comments
Posted by inaword (anonymous) on October 21, 2009 at 2:24 a.m. (Suggest removal)
And yet still banks are failing left and right. Somethings is wrong with this picture.
Posted by PikeCountyGirl (anonymous) on October 22, 2009 at 11:10 a.m. (Suggest removal)
Most consumers don't realize the high cost of credit card use. For example a less than $1.00 purchase typically cost the business around $.30. The credit card companies charge the business a flat rate charge for each transation plus a percentage of the purchase in fees. It is not unheard of for a $200.00 charge to cost the business $20.00 in fees. The rates and fees vary by credit card company and type of card with American Express being the most expensive. The money being brought into these large banking institutions are walking right out the door with the CEOs. The national news this morning had a story on the crack down on salaries by the government on the institutions which were bailed out by the government. They plan to reduce the unbeliveably high saliries by 90% with a 50% reduction in others.
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