For some time now, merchant groups and card payment processors have been disagreeing about the amount the latter charges the former for all purchases made with debit or credit cards, and the argument might be coming to a head.
Whenever consumers use their credit or debit cards to make purchases, the businesses they visit pay fees to payment processing companies to accept those transactions, and merchants say those for credit cards remain stubbornly high, according to a report from Sioux Falls, South Dakota, television station KELO. Meanwhile, the federal government now limits the fees merchants pay for processing debit cards to a flat rate regardless of the size of a purchase, but credit processing fees remain a percentage of the total purchase price.
"It hurts us because the fees credit card companies are charging to us as retailers continue to get higher," small business owner Heather Boysen told the station.
No matter what type of payment method they use, consumers should always take the time to check their credit reports. By doing so, they can find errant or unfair entries that are hurting their credit rating.