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Inflated Pricing for All Customers

Inflated Pricing for All Customers - prices to cover the...

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Inflated pricing for all consumersMerchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.[12][13] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States).[14] The result is that merchants may charge all customers (including those who do not use credit cards) higher
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Unformatted text preview: prices to cover the fees on credit card transactions.[13] In the United States in 2008 credit card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.[13]...
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