As a small business owner who does not accept credit cards, I’d never given much thought about the hidden fees associated with accepting credit and debit cards.
After listening to some merchants in the following CNN story, it sounds like the large financial institutions are really reaping the benefits of cards to a much greater extent than the small businesses.
Of course there is no easy answer and what may work for one business may not work for another. I thought that by using my card the fee charged to the business would be less. Apparently it is less, but can still be a drain on the businesses cash flow and over all expense profile.
As a consumer I like using a debit card because I can avoid carrying cash or looking for a check book. I do understand there is an expense needed to build and maintain the network that supports the card network, but it appears the merchants are caught in the middle. If they decline to accept cards, they’ll be at a competitive disadvantage. So they may be stuck. I’ll try to use cash more frequently especially for the small ticket items.