If you have ever wondered how it is exactly that credit card companies can afford to pay out such generous rewards from their reward credit cards like 1% – 5% cash back or airline miles or any other number of other things then the popular convenience store 7-11 is more than ready to tell you what they think the reason is.
While credit card companies have a number of different ways to make money (i.e. annual fees, late payment penalties, and of course interest charges for those who carry a balance on their card) one of the biggest cash cows for a credit card company is the transaction fees that the card issuers charge stores in order to let customers have the convenience of using their credit card to pay for that store’s goods.
In a recent WSJ news article, written by Jessica Holzer, it is mentioned that many different 7-11 store owners presented Congress with 130 boxes containing nearly 1.7 million signatures in favor of lowering the fees that credit card issuers charge convenience stores like 7-11 every time a credit card holder swipes their credit card to make a purchase.
While 7-11 will vehemently argue that the credit card processing fees are much too high for them to bear and in turn would hurt consumers by causing 7-11 and other stores to have to increase prices on their goods in order to absorb the higher fees it took no time for Visa/MasterCard along with other banks/credit card operators to fire back with some pointed remarks of their own: “This petition is not what it appears to be. 7-Eleven used deceptive language to trick their customers into signing something they thought would save them money,”
The consortium of credit card companies essentially makes the case that if they are forced to lower their credit card processing fees then they will have to in turn lower the amount of rewards and other benefits that they are able to dole out to their card holders (On a side note, now you can see why sometimes issues like these can cause some credit card companies to change the terms of their credit cards as they are forced to potentially have to charge less in card processing fees).
Regardless of what a credit card’s fee structure is or how it may change it is always a good thing to be an informed credit card shopper. To find the best deal on a credit card then use our free “Chaser” search engine tool for credit cards today!
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