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Monday, July 12, 2010

WTF - Swipe Fees?!!?

I've been scanning through Reddit lately...and this posting, as well as the discussion is quite interesting..

http://www.reddit.com/r/WTF/comments/coiic/1_way_of_helping_out_ma_pa_stores/

Today I went into a 'Ma & Pa' type of gas station today to buy a pack of smokes. The cashier thanked me for using cash to purchase the product. I said you're welcomed & asked why are you happy that I used cash instead of a debit or credit card.

He informed me that small chains, such as his (gas stations, local stores, etc) are basically getting raped by by 'Card Companies' w/ fees. These companies take 40cents of the profit made from the product sold using debit/credit cards while the more well known companies such as Walmart, Target, Sheetz, etc only have to pay 1% for those types of transactions.

An example he gave me: Say you go into a 'Ma & Pa' type of store & but a $10 pack of beer. He only see's 50cents from that sale. If you use you debit/credit card, the company they deal w/ takes the 40cents, leaving the store w/ a 10cent profit.

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