Credit, debit, and prepaid general purpose and private label cards issued in the United States generated $5.936 trillion in payments for goods and services in 2016 according to The Nilson Report and the merchant fees were $89.39 bn, see below:
Source & Copyright©2017 - The Nilson Report
The average cost, taking into account all the different fees and charges that the banks have developed since the regulators limited the level of interchange fees, is an impressive $1.49 for every $100 sales turnover on cards.
There are many ways to cut the cost of payment cards. Specialist consultancies can save large corporates $millions.
Cash is cheapest at POS
The British Retail Consortium have been waging war for years with the payment card companies, insisting that at the point of sale their research shows that cash is by far the cheapest:
Source & Copyright©2017 - British Retail Consortium from 2016 study
CTMfile take: Payment cards are an essential part of payments at POS, but the charges and fees need checking and managing. Cash is cheapest, but many customers just don’t want to use it.
At POS in the USA the Dodd-Frank Act increases savings from debit cards
In the Dodd-Frank Act, the Federal Reserve Bank was tasked with setting debit card swipe fees that are reasonable and proportional to the issuers costs.
US merchant card processing fees rising and also many merchant not ready for EMV
General purpose and private label credit, debit, and prepaid cards cost on average 1.51%
Legal settlement kicks in: US merchants can now charge for credit card transactions
Retailers in 40 US states can now charge up to four percent extra when consumers pay for goods and services with a credit card. The new service fees would potentially cover the merchant's cost of processing the cred