Swipe Fees: The Secret Tax

THE SECRET TAX 1 $100 WHEN YOU USE YOUR DEBIT OR CREDIT CARD, THERE ARE A SERIES OF FEES FOR AUTOMATED TRANSACTION PROCESSES. THESE "SECRET TAXES" COST YOU, AND THE MERCHANT, MORE THAN YOU'D THINK. CONSUMER SPENDS $100 AT A LOCAL STORE 2 $-0.50 GATEWAY TAKES A FEE 5209 1390 4567 899 3 $1.70 $-92 MERCHANT PAYS AVERAGE OPERATIONAI COSTS. ISSUER TAKES A FEE. * RENT * PAYROLL * TAXES * PRODUCT * ADMINISTRATION * AND MORE • $-0.50 ACQUIRER TAKES A FEE. $45 NOTE NO SHEEP WERE HARMED IN THE MERCHANT RECEIVES THEIR NET PROFIT. MAKING OF THIS INFOGRAPHIC. WHERE DOES THE MONEY GO? 360 $45 | 270% 270 180 BILLION 90 2001 2003 2005 2007 2009 YEAR CREDIT CARD COMPANIES MADE AN EXTRA THAT'S A 270% INCREASE SINCE 2001. $45 BILLION FROM SWIPE FEES IN 2009. THAT'S ALMOST AS MUCH AS THE 2012 MICHIGAN STATE BUDGET! $45 $46 rong 1390 4567 B89 %24 MI BILLION BILLION WHO LOSES? $5 $2.5 I COST OF DOING BUSINESS I PROFITS PROFITS FEES I FEES A 2.5% FEE DOESN'T LOOK LIKE MUCH UNTIL YOU COMPARE IT TO THE AVERAGE MERCHANT'S PROFIT MARGIN. SOME MERCHANTS WOULD MAKE 50% MORE PROFIT. WHAT DOES IT COST YOU? THESE INVISIBLE FEES COST THE AVERAGE AMERICAN %24 $35.58/MONTH THAT'S $427/YEAR $393.55/YEAR $427/YEAR THAT'S MORE THAN THE AVERAGE AMERICAN SPENDS ON CHRISTMAS PRESENTS FOR THEIR FAMILY. WHAT YOU CAN DO. CONSUMERS MERCHANTS PAY WITH CASH LOWER YOUR FEES Local merchants make up to 50% more net Services like www.FeeFighters.com can help profit from cash transactions. As an added you save up to 40% on your transactions. Just bonus, more of the money will stay in your tell them about your business, look at their local community rather than fly away to a comparison chart, and choose the lowest rates. corporate bank account. AVOID USING REWARDS CARDS OFFER DISCOUNTS .............. ..... ...... These perks may be tant ing, but the costs Thanks to recent legislation, you can now are transferred back to your local merchant. legally offer discounts to customers who pay by cash or use cards with lower fees. You can also Ultimately this results in higher prices and more money leaving your community. decline the most expensive cards. RESOURCES http://www.gao.gov/new.items/d1045.pdf http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id%3D1016 http://money.cnn.com/magazines/fortune/fortune500/2009/performers/industries/profits/ http://www.freep.com/article/20110527/NEWS06/105270412/Gov-Rick-Snyder-sign-budget-controversy-continues MERCHANTOS merchantos.com PERCENTAGE