To The Editor:
Debbie Cuddy makes an interesting point about those extra charges we frequently see on our bills when we make credit card payments. I believe the reason business owners have resorted to this practice is due to the following.
Have you ever considered who pays for your credit card cash back rewards? Big hint: Usually it is not your credit card issuer. It is the business owner who processed your transaction.
When you pay with a credit card, the transaction is processed by a company that the business owner hired for that purpose. The credit card processing company submits a monthly statement, which includes their processing fee for handling the transactions. However, this is not the only charge on this statement. Credit card issuers charge interchange fees which typically range from 1% to 3 %. Some credit card issuers even have additional charges that are included. Thus, the business owner can easily be paying in excess of a 5% fee for each credit card transaction.
I always try to pay cash at our local businesses. It is a good way to show support for our local businesses. I do not believe that they should be paying for my credit card points or cash back rewards.
Sincerely,
Peter J. Martin, Ph.D.
Monroe, NY