With the release of credit card bill, credit card holders can now expect at least some semblance of fairness from their credit companies. Merchants and other businesses do not have such luxury, however.
For merchants and other businesses, accepting credit card payments from customers can be a financial pain. Every time a customer uses his or her credit card to pay for a purchase, the credit company issuing the credit card will charge the merchant a percentage of the purchase. The fee, known...
It is no secret that the credit card industry is currently having a hard time keeping their finances afloat. The economic crash and the resulting rapid increase in credit card delinquencies and write offs caught the credit companies highly exposed and, as a result many found themselves in the brink of a financial collapse. A timely bailout from the U.S. government has kept most of the major credit card companies afloat. However, the credit card crisis still remains and, as unemployment...
Continue readingIn recent years, credit card companies have seen the small business sector as one of the fastest growing credit users and the most profitable as well.
It was American Express who first released a credit card specifically made for small businesses, about twenty years ago. In the past decade, other credit card companies began to move in on the small business sector as a fast growing source of new credit accounts, moving away from the already saturated consumers sector.
Because of the...
When the credit card bill was released, merchants were less than pleased that they had been left out.
While addressing many unfair credit industry practices such as unfairly high interest rates and fees and obfuscated business practices, the credit car bill left out merchant's pet credit industry peeve: interchange fees.
Merchants pay an interchange fee every time their customers buy from them using credit cards. These fees average at about 1.75 percent of a credit cardholder's purchase...
Debates about how good or bad the recently passed credit card law is has been going around even before the legislation got out of congress. There have been some valid points voiced out but, in the end, the credit card law is simply a compromise so that the credit card industry and the consumers survive the on going economic crisis and, perhaps build a better relationship between credit card companies and consumers.
The credit card industry found itself on the verge of collapse when, at the...