Americans thrive on credit. It’s estimated that each American credit card holder has three bank cards, two debit cards, and four retailer cards at any given time. That’s a lot of plastic! And Americans are relying on their credit cards more heavily than ever before.
If you’re a cardholder in America, you might have wondered how your situation compares to the national average. How much debt does the average card holder carry? How much do they pay off each month? What is an average credit card interest rate?
With some facts and figures from Citigroup Inc and the Federal Reserve, you can see just how your debt compares. You might be a typical American cardholder if…
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Running a small business comes with a host of unique challenges. Should it really be that difficult to accept credit card payments from customers? Sadly, for many business owners, the fight over rising interchange fees – the fees that credit card processors charge for each credit card transaction a business makes – is getting tougher. What was a $16 billion industry just seven years ago has turned into a $48 billion racket in 2008. Small business owners are watching their profits dwindle as more and more of their money is spent on interchange fees.
How bad is the problem? Soon, you might find it impossible to fill up your gas tank if you pay with a credit card. Gas station operators are losing money because they must pay an interchange fee on every gallon of gas their customers charge. As the fees increase, profits go down the drain. And with the rising cost of gas, some store owners just can’t afford to pay the interchange fees. In some cases, the fees cost more each month than gas purchases bring in.
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Many small business owners might feel the need to shy away from credit cards, to avoid the temptation to overspend or because they prefer to pay for everything in cash. What business owners may not be aware of, however, are the often-overlooked “extras” that come with business credit card rewards programs.
Think about the typical credit card rewards program- it may offer one point per dollar spend on the card, and be rewarded in the form of cash back or points redeemable for merchandise or travel. While these can be beneficial when used correctly, credit cards can offer a whole range of additional benefits to the business owner.
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