Proposal takes a swipe at credit card swipe fees
By Joe Kefauver / For The Herald
Under a new bill introduced this month, Washington state could lead a nationwide charge in addressing the ballooning “swipe fee” problem; fees that cut into small businesses’ profit margins and raise the costs of goods.
Given Washington’s status as one of the most expensive states in the country in which to live, reducing these fees would go a long way to providing cost relief for businesses and consumers.
Swipe fees are the charges that Visa, Mastercard, and the big banks impose on retailers for every credit card transaction; amounting to anywhere from 2 percent to 4 percent of the transaction total. While this amount may seem small at first glance, they add up fast. In fact, Washington retailers paid more than $384 million in swipe fees on sales taxes alone; a tax they are required by the state to collect. Overall, retailers across the country shelled out over $224 billion in swipe fees last year, making these fees their second-highest operating cost.
The damage doesn’t stop there. When swipe fees increase small businesses’ costs, these costs are often passed along to consumers in the form of higher prices. The result? A hidden $1,100 annual bill that families in Washington pay without even realizing it.
https://www.heraldnet.com/opinion/comment-proposal-takes-a-swipe-at-credit-card-swipe-fees/