Using Credit Cards is Costing More
Shoppers are increasingly being charged fees for using credit cards, the Wall Street Journal reported. While only 5% of the 8 million card-accepting businesses in the US charge fees to consumers who use a credit card, the percentage is rising. Five years ago the percentage was just 2%
The fees are being charged to offset costs charged to businesses by the card companies, which in turn pay for cash-back and travel rewards. The recent uptick can be attributed to Covid-19 as businesses search for ways to recoup lost revenue in the early months of the pandemic. Rewarding customers for using debit cards or cash, or passing along the fees by the credit card issues to consumers, is the course many businesses will increasingly take to hold onto what in many cases are already slim margins.