Banks win, merchants lose when consumers use debit and credit cards (guest …
News from

Walt Hellman  

By Walt Hellman, Argus Community Writer

I still remember the first time I learned that credit cards were taking over.  My wife and I were young, living in Corvallis in the late ’70s and doing our first car rental. I remember being utterly astounded — and angry — when the desk clerk said they didn’t take cash, but only credit cards. Didn’t take cash? How could that be?

Now many people carry virtually no cash. Checks are more and more a rarity. Debit and credit cards are used for a tremendous portion of transactions, even small ones under $ 5.

The use of plastic money and credit is tremendously convenient for the consumer and assures the merchant that the sale is paid for. There are no bounced checks and the bookkeeping is done automatically. I don’t know anyone who would want to go back to the old system.  

But when you talk to local merchants about the fees they have to pay to cover your bank card usage, a different side of the story emerges.

Most consumers have no idea of the large costs of the new system, which are largely borne by the merchants and which probably raise prices 2 to 4 percent on most everything we buy. A Federal Reserve study found that in 2009 roughly $ 18 billion in fees were collected…………… continues on

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Related News:

Extra credit card fees may not be as widespread as anticipated
News from Deseret News:

In this Dec. 12 photo, Lana Nguyen, right, holds up a shirt while helping friend Chris Ghiathi, left, shop in an H&M store in Atlanta. Thanks to a recent settlement, using credit cards could cost consumers an extra 4 percent, but one consumer group says it’s

…………… continues on Deseret News
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