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Credit Cards: Rising Interchange Fees Have Increased Costs for Merchants, but Options for Reducing Fees Pose Challenges
Credit Cards: Rising Interchange Fees Have Increas

Our Price: $30.00
By Alicia Puente Cackley (au)
Year: 2009
Pages: 69
Binding Paperback

Product Code: 143792574X

When a consumer uses a credit card to make a purchase, the merchant does not receive the full purchase amount because a certain portion of the sale is deducted to compensate the merchantís bank, the bank that issued the card, and the card network that processes the transaction. The level and growth of these rates have become increasingly controversial. This report reviews: (1) how the fees merchants pay have changed over time and the factors affecting the competitiveness of the credit card market; (2) how credit card competition has affected consumers; (3) the benefits and costs to merchants of accepting cards and their ability to negotiate those costs; and (4) the potential impact of various options intended to lower merchant costs. Illustrations.

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