I heard on NPR today that there is rebellion against the credit card fees in the retail sector. They said that most retailers survive on a 2% margin on sales which tends to be under attack by the credit cards' voracious appetite to get more per sale.
They talked about a 7-11 petition for customers to ask the credit card companies to roll-back fees. The reporter said that Visa was taking $.10 a transaction plus a 1% interchange rate for simple credit cards and debit cards. Gift and foreign cards had higher rates. The 7-11 Convenience store was complaining about the high rate which was hard to predict, arbitrary and on a typical small purchase of $2.50, is about 5%.
I've often wondered why Walmart, in their relentless pursuit of lower prices for customers, have not gone after credit card expense. Is it because they also are in the credit card business so they are making money on it? (By the way, this is total speculation, I have no idea whether Walmart offers credit cards). Is it because Walmart has a special deal with the card companies are are paying a much lower rate than everybody else? (again, total speculation, I have no insight and haven't yet researched it).
Costco doesn't allow Visa or Mastercard credit cards in their stores. You either pay with Amex or a debit card. Is that part of a strategy to attack those fees?
Anybody know?
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