Now you can know how much are credit card processing fees costing stores! Has anyone here seen this site - truecostofcredit? It allows you to find out how much your credit card is charging the merchant in processing fees. I'm not talking about some generic calculator that spits out an approximate number. This thing actually bases it on the first 6 digits of your credit card number to identify the bank and card and how much they charge in processing fees.
It's a pretty spiffy tool. The True Cost of Credit | What does your card cost?
Here's what it said about my Amex card.....
American Express cards typically cost businesses about 0.77% more than Visa, Mastercard and Discover cards. Unlike Visa and Mastercard, where the rates for each transaction are set according to a set of rules called Interchange, American Express negotiates their rates on a business-by-business basis, which results in some large retailers (Costco, Trader Joe's) getting much lower rates than their smaller competitors. Check out this blog article for more information on American Express Discount Rates.
Here were examples it gave for that card and the fees involved.....
(1) A pack of gum at a convenience store: $1.50
Credit Card Fees: $0.37 (24.8%)
Percent: 3.500% Per-Item: $0.32
The average convenience store paid $52,064 last year in credit card processing fees (details) - 2.25 times the average earnings of such a store. (2)Jill's Sandwich Shop: $7.00
Credit Card Fees: $0.52 (7.4%)
Percent: 3.500% Per-Item: $0.27(3) Tank of Gasoline at a fueling station: $30.00
Credit Card Fees: $1.22 (4.1%)
Percent: 3.500% Per-Item: $0.17
The average gas station paid $52,064 last year in credit card processing fees, 2.25 times the average earnings of such a store.
A typical sandwich shop like a Jimmy Johns pays about $10,000 each year in credit card processing fees (details) - enough to pay a sandwichmaker for 4 months!
It gave a few other examples too....