NACS Interactive Cartoon Depicts Cost of Interchange

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NACS Interactive Cartoon Depicts Cost of Credit Fees



The National Association of Convenience Stores has released an interactive cartoon designed to educate consumers about the problem of credit and debit card swipe fees with the hope of involving them in a solution. Called interchange fees by the banks that set the rates, swipe fees are a percentage of each transaction that Visa and MasterCard and their member banks collect from retailers every time a credit or debit card is used. Fees average about 2 percent in the United States.



The cartoon provides information about these hidden credit card fees, informing consumers that $2 out of every $100 spent for products at convenience stores goes toward interchange fees. Users can then see the effect that swipes fees have on specific purchases, whether for fuel, milk, bread, snacks or the daily newspaper. When consumers select a product, the cartoon displays how much profit the retailer makes on the purchase and how much money goes to credit card companies in the form of interchange fees.



With the purchase of a 50-cent newspaper, for example, the retailer would lose 11 cents, while the interchange fee would be 13 cents, according to the cartoon. The interactive program helps illustrate the low, or even negative, margins that convenience retailers have on small purchases made with credit cards.



“The battle over credit and debit card swipe fees that has been raging on Capitol Hill for the past five years will be heating up again soon,” said Lyle Beckwith, NACS senior vice president of government relations. “The credit card industry makes $125 million a day on swipe fees, so it is obvious why they want to protect their ‘secret tax’ on consumers and retailers. This cartoon is an interactive tool that can help bring together retailers and consumers to tell Congress why swipe fee reform is so essential to Main Street retailers, as well as American consumers.”



In 2008, Americans paid more than $48 billion in credit card swipe fees, according to NACS.



The interactive cartoon is viewable here.