Friday, July 1, 2011

Credit card processing fees: Why do credit card issuers take a 2% cut? - latimes.com

Credit card processing fees: Why do credit card issuers take a 2% cut? - latimes.com

Are high credit card fees pricing plastic out of the market?

Some businesses are putting the kibosh on credit cards to avoid paying processing fees that run about 2% of the transaction amount. In other words, every time you buy something for $100with plastic, it costs the merchant nearly $2 in processing fees.

Multiply that by hundreds or even thousands of daily transactions, and that can add up to some serious coin. Typically, those costs are passed along to customers in the form of higher prices.

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