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Credit Card Applications » News » Other » Merchants Asking For Customer`s Help To Lower Transaction Fees

Merchants Asking For Customer`s Help To Lower Transaction Fees

April 08, 2010
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Petition papers are showing up in convenience stores across the country as merchants try to solicit the support of customers to help them in their quest to lobby for lower credit card transaction fees.

Every time a credit card is used by customers for purchases, shop owners are charged a transaction fee by banks and credit card issuers. Disgruntled retailers are demanding that these fees be reduced, which would generally range from 1% to 2% per transaction.

The National Association of Convenience Stores (NACS), which represents grocery and convenience shop owners across the US, launched the signature campaign in Dec 15, 2009 and will end in Jan. 15, 2010.

Retailer Kangaroo Express, a member of NACS, said that credit card companies charge them 2% per credit card transaction. With a monthly transaction volume of 1.5 million, the fees add up substantially, hurting their profits. In turn, some of the costs are passed on to consumers, resulting to more expensive goods. The company wants to negotiate for lower swipe fees so that they could offer cheaper products to customers.

Credit card transaction fees now represent Kangaroo Express's third largest expenditure after labor and rent. The company is targeting to collect as much as 1.8 million signatures in their signature campaign.

The Senate and Congress have acted on the issue by submitting pertinent legislation that is currently being deliberated by lawmakers.

Congressional bills H.R. 2695 and S. 1212, both named Credit Card Fair Free Act were created to allow merchants and credit card issuers to negotiate for transaction fees.

Sanford Food Mart in Tramway, has so far collected 200 signatures. Om Desai, the store's manager explains that the fees are considered as overhead costs. He wants consumers to be educated about swipe fees and understand their implication on the costs of goods. He adds that the fees keep getting higher each year and they are struggling to keep the price of their merchandise down as a result. Desai is also planning to talk to Congressman David Price, who represents his district, to discuss with him the issues of local retailers regarding swipe fees.

Many stores are setting a purchase floor of $5 to customers so that they would not be too impacted by the credit card charges. Desai explains that most customers are sympathetic to their plight and willingly comply by their floor policy, but there is a handful that resents this practice.

He makes it a point to ask all customers who come in their stores for their signature to show support to their cause.

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  • Larry
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  • CreditLandCom
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  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
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  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
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    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
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