Pass-through Card Fees
In the news this month is a controversy about laws to permit retailers to pass credit card “swipe fees” along to consumers. Merchants pay a fee to the credit card companies (banks) every time a card is swiped or a transaction is processed electronically, usually a percentage of the purchase price, or a flat fee per swipe.
Historically, retailers have “eaten” the fee rather than charge their credit card customers higher prices to defray the costs. New credit card regulations will make it easier for merchants to pass those fees directly to their customers, but many are reluctant to alienate their credit customers by doing so.
Meanwhile, they don’t seem to mind letting their cash customers subsidize credit card users by paying the same price for goods and services that cost the merchants less to sell. What’s being overlooked in this little controversy that never ceases to outrage consumers?
TV report about Credit Card Fee passthrough
WHYY News report about Credit Card fees
How to Spin your New Policy
What’s the best way for a retailer who has decided to pass through the processing fees to his credit card customers? Hint:
Question for You
How would you rewrite the second poster to alert buyers to your new policy of building swipe fees into the purchase price of every item?
Quick in-class assignment
Submit your wording for the right-hand poster in the comments field below.