Hidden Credit & Debit Card Fees Cost Consumers Big Time

April 22, 2010

Every time you use your charge card or your debit card, the business pays a fee.  That may not be a big surprise, but just how much that business pays is more concerning.  In the United States, businesses pay a transaction fee of approximately 2 percent every time you use your card.  In other words, if  you spend $100, the store gets $98 and the credit card company gets two dollars.  That compares to other countries, like Australia, which only allow credit card companies to charge a 1/2 percent transaction fee.

Whom do you suppose the businesses pass those extra costs onto?  Hmm.  Could it be the consumer?  A recent Government Accountability Office report to Congress reveals, in fact, it costs consumers more than $48 billion a year in added costs.

In this time of recession and shrinking pocket books for middle class America, perhaps it’s time to take a look at the level of those hidden fees.  President of the American Antitrust Institute Albert A. Foer is calling on Congress to include new regulations on these fees as it works to pass financial reform legislationClick here to read his editorial in the New York Times.