My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Warning: Higher Credit-Card 'Swipe' Fees Ahead

Guest Writer
Owner of Make a Living Writing
min read
Opinions expressed by Entrepreneur contributors are their own.
credit-card-swipe.jpgJust what small businesses need right now: higher fees for accepting credit cards. Apparently, a settlement with the European Union to cap fees at a lower rate may see banks making up their losses by hiking rates here in the States, a retail trade group is forecasting.

The organization of major retailers, the Retail Industry Leaders Association, notes U.S. fees have tripled since 2001 to $48 billion, putting a damper on hiring. Last month alone, American swipe or "interchange" fees rose 30 percent. Now, charge-card issuers such as Visa and MasterCard need to make up their losses abroad somewhere...and the RILA fears that means in your merchant banking bill.

The RILA has been trying to get Congress off its duff on this issue to pass a federal reform bill, and is hoping the European settlement might spur them to action. If you're sick of fees so high your store loses money on small credit- or debit-card purchases, now's the time to call your representative to urge them into action.

"The announcement [of Visa Europe's settlement with the EU] leaves American businesses, small and large, asking why the same cannot be done here," the group said in a news release.

It'd be nice to have some parity on swipe fees. The Visa-EU deal capped interchange fees at .2 percent for four years. Meanwhile, here in the U.S., Visa's interchange rate for debit cards was .95 percent in April.

The group notes other countries including Canada, New Zealand and Australia have also already taken action to bring swipe fees back to sanity. Time for us to join the crowd.

RILA's government-affairs vice president John Emling says, "The U.S. is fast becoming the only industrialized nation in the world that allows our own banks to stifle business growth by indiscriminately setting rates far above the cost associated with the service provided."

More from Entrepreneur

Kathleen, Founder and CEO of Grayce & Co, a media and marketing consultancy, can help you develop a brand strategy, build marketing campaigns and learn how to balance work and life.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.
Start My Plan

Latest on Entrepreneur