Easing the Burden of Interchange Fees
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.
