Americans beware: Credit card surcharges are on the rise
The post Americans beware: Credit card surcharges are on the rise appeared on BitcoinEthereumNews.com. America, a country renowned for its booming economy and consumer-driven market, is no stranger to the convenience of credit card transactions. As we’ve all navigated the uncertainties of recent years, the move towards card payments has surged, echoing a notable shift in purchasing behavior. The Swell in Swipe Fees Since the onset of the pandemic, there’s been a discernible ripple of discontent among American business proprietors concerning the escalating cost of credit card acceptance. As consumers, the convenience of swiping that piece of plastic or making a contactless payment has become second nature. However, the cost of this convenience is now rearing its head, and the onus is falling on both merchants and, unfortunately, the end consumer. Statistics from the Federal Reserve paint a clear picture: credit card purchase volumes soared by a whopping 51% from 2015 to 2021. Simultaneously, the transactional value escalated by an impressive 60%. With these numbers in mind, it’s hardly surprising to learn that in just the last year, US merchants shelled out a staggering $160.70 billion in processing fees for card payments worth $10.6 trillion, as outlined in the Nilson Report. The lion’s share of these costs – approximately 79% – stemmed from credit card transactions. Passing the Buck to the Consumer However, with inflation bearing down and trimming profit margins, businesses in America have found themselves between a rock and a hard place. Their solution? Transferring a chunk of these escalating expenses onto their customers. The once-hidden surcharges are now becoming blatantly apparent, with added fees for those who choose the “convenience” of credit card payments. If you’ve been thinking this is a sporadic trend, think again. TSG, a payment consultancy, estimates that an alarming 5-10% of the 8 million small businesses in America that accept card payments have introduced credit card usage…
The post Americans beware: Credit card surcharges are on the rise appeared on BitcoinEthereumNews.com.
America, a country renowned for its booming economy and consumer-driven market, is no stranger to the convenience of credit card transactions. As we’ve all navigated the uncertainties of recent years, the move towards card payments has surged, echoing a notable shift in purchasing behavior. The Swell in Swipe Fees Since the onset of the pandemic, there’s been a discernible ripple of discontent among American business proprietors concerning the escalating cost of credit card acceptance. As consumers, the convenience of swiping that piece of plastic or making a contactless payment has become second nature. However, the cost of this convenience is now rearing its head, and the onus is falling on both merchants and, unfortunately, the end consumer. Statistics from the Federal Reserve paint a clear picture: credit card purchase volumes soared by a whopping 51% from 2015 to 2021. Simultaneously, the transactional value escalated by an impressive 60%. With these numbers in mind, it’s hardly surprising to learn that in just the last year, US merchants shelled out a staggering $160.70 billion in processing fees for card payments worth $10.6 trillion, as outlined in the Nilson Report. The lion’s share of these costs – approximately 79% – stemmed from credit card transactions. Passing the Buck to the Consumer However, with inflation bearing down and trimming profit margins, businesses in America have found themselves between a rock and a hard place. Their solution? Transferring a chunk of these escalating expenses onto their customers. The once-hidden surcharges are now becoming blatantly apparent, with added fees for those who choose the “convenience” of credit card payments. If you’ve been thinking this is a sporadic trend, think again. TSG, a payment consultancy, estimates that an alarming 5-10% of the 8 million small businesses in America that accept card payments have introduced credit card usage…
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