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Fees Incorporated with Credit and Debit Cards Lead to Confused Small Business Owners
Published on Jul 5, 2011
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Credit and debit cards have become the desired way to pay for many consumers across the country. However, this form of payment can leave small business owners with headaches when dissecting their financial statements. These pains often come from the fees that are generated by each transaction completed with a credit or debit card.
Fees are different with every credit card merchant, which can lead to hundreds of combinations of charges. This makes it near impossible, for even the most meticulous of small business owners, to interpret all of the charges.
“I don’t have time to spend looking over every single line of the credit card statement,” Mike Craighill, a Montana-based restaurant owner, told CNNMoney.com.
Another obstacle for merchants is the interchange fee, or the “swipe fee,” which is what merchants pay to debit card companies for each transaction. Many small business owners and advocacy groups have protested these high rates over the last several months.
A June 29th press release from the Fed reports that a final ruling on debit card interchange fees has lowered the fee to 21 cents per transaction and five basis points multiplied by the value of the transaction. According to the Fed, the new ruling would save business owners about three cents per transaction and goes into effect on October 1.