BOSTON — It isn't just credit card interest and late fees that sock it to Massachusetts consumers. There's also a "hidden fee" merchants are charged — and they're passing along that expense through higher prices for everyone.
That's according to Lyle Beckwith with the National Association of Convenience Stores, who says the so-called interchange fees have been rising, and there's no way for merchants or consumers to know up front how much the store will be charged.
"So the merchant has no idea what the rate of any card is, and they're constantly trying to factor in what their expenses will be," said Beckwith. "They don't know until they get what's left of their money back from the bank."
Beckwith says interchange fees in the U.S. are among the highest in the world, and he cites research that shows up to 70 percent of the fees are likely pure profit.
Consumer credit card issues take the stage before Congress this week, as the House Financial Services Committee holds hearings. And, merchants' groups representing Bay State businesses want to add the so-called "interchange fees" to the agenda.
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I assume the cost will be around 3 to 5 %, depending on if it's a corporate card, and pass that along to my customers. If they pay cash or business check, it's not charged. I do not take personal checks, as a few have ruined it for many.
