zenstockman

Credit Card Interchange Fee Datapoint of the Day

Wal-Mart had $401.2 billion in revenue in their most recent fiscal year.

“That is way too much! They must be gouging the consumer.”

That is an incredibly uninformed statement. To target interchange fees or revenues without mention of the cost of providing those services is ridiculous. By accepting electronic form of payments, retailers benefit more than they are harmed. If that weren’t the case, they wouldn’t take them. An example of this is checks. The costs associated with bad checks and the technology to insure that checks are good, overwhelm the lost profits from not taking checks.

If you think interchange fees aren’t built into store prices, you are naïve. I would argue that those whom are still paying in cash are over-paying.