Alpha Consumer

Audio: Hidden Fees on Credit Cards

Posted: October 7, 2009

Over the weekend, I spoke with WTOP in Washington about the hidden credit card fees we all pay each time we buy anything with a credit card. The merchant pays 2 percent of the purchase price to the bank that issues the card. (The fee is known as the "interchange fee.") Merchants are now lobbying Congress to limit those fees, which they say cut into their own bottom lines.

Hidden Fees on Credit Cards

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What is new about this. Its the credit card fee built into every agreement they have with merchants. merchants are specifically prohibited from passing this fee on directly, because they don't want consumers to know it costs money to use a credit card / debit card. And it is not just banks, its all credit card companies and really all electronic payment processing. If the public actually paid any attention they would know about this.
I pay with cash whenever possible because of these fees. You probably don't know about the "swipe" fee. Many companies charge a flat fee in addition to the 2%. I've heard as much as 75 cents + 2% of the total.

Michael of MT @ Oct 07, 2009 12:23:55 PM

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