Cost of Credit Impact on Merchant’s Bottom Line

Do you know how credit card processing fees have impacted the bottom line at all of your favorite stores? Items as small as a pack of gum when purchased with a credit card, may face processing fees as high as 50% of their value. Ultimately, such costs are factored into the price of all products and services at a store that accepts credit cards for payment, which means even if you don’t use credit cards, you are paying increased prices as a result.

Do you want to know much credit cards are adding to the costs of your favorite items? An interesting website, The True Cost of Credit, gives breakdowns of the costs associated with different credit cards and how the fees add up. You can even enter in the first six numbers of your debit or credit card into a calculator on their site and find out how much is added when you buy a new computer or have lunch at a classy restaurant.

Still, despite the added costs, most consumers would be extremely reluctant to part with the convenience and luxury afforded by having access to credit cards and debit cards.