Around 85% of people think they are being nickel-and-dimed when they are asked to pay an extra fee to process a credit card payment, according to WalletHub’s 2024 Credit Card Processing Fees Survey, released today. Below, you can find some highlights from the survey, as well as a Q&A with WalletHub Analyst Cassandra Happe discussing the survey findings and the recent card network settlement.
Key Stats
- Fee Fatigue: 85% of people think they are being nickel-and-dimed when they are asked to pay an extra fee to process a credit card payment.
- Very Common Problem: 79% of Americans have been charged a fee for paying with a credit card.
- Credit Card Boycott: Half of Americans say they will not use their credit card if they have to pay a fee.
- Transparency Concerns: 48% of people feel that merchants are not transparent when charging fees for credit card transactions.
For the full survey, please visit:
https://wallethub.com/blog/
Q&A With WalletHub Analyst Cassandra Happe
How do Americans feel about being charged extra to use credit cards?
“Americans do not like being charged extra fees to use credit cards, with 85% of people saying they feel nickel-and-dimed when it happens, according to WalletHub’s new survey. It’s currently legal to add surcharges for credit card transactions in most states, so most people still need to carry an alternate payment method, like cash or a debit card, to ensure they don't waste money on processing fees. Half of Americans will still use a credit card even when charged an extra fee, though, due in part to the convenience of credit cards and rewards that can offset fees.”
How common is it for merchants to add a surcharge for credit card payments?
“It’s relatively common for merchants to add a surcharge for credit card payments, as 79% of Americans say they have been charged this type of fee, according to WalletHub’s latest survey. Merchants are charged a fee by the credit card networks every time they perform a credit card transaction, so many places try to pass that cost back to consumers by charging more. For example, you’ll typically see gas stations charging more for payments made with credit compared to cash or debit cards.”
How transparent are merchants about charging fees for credit card transactions?
“Roughly 48% of people feel that merchants are not transparent when charging fees for credit card transactions, according to WalletHub’s most recent survey. It is concerning that people don’t think businesses are transparent, because merchants who charge more for using credit cards are required by law to clearly communicate that to consumers before they make a purchase. This could indicate either that merchants are not following the law, or that they are complying in a way that is not clear to the average person.”
How will the recent settlement agreed to by Visa and Mastercard affect consumers?
“If approved, the Visa and Mastercard settlement, which aims to reduce the processing fees they charge merchants, is expected to have a limited impact on consumers. The current settlement proposes a modest reduction of 0.04 percentage points for a minimum of three years. Merchants are unlikely to pass on their savings to consumers, however, and the settlement allows them to apply varying surcharges for different types of credit cards, with rewards cards facing higher penalties. Only a small segment of consumers who use cards that merchants prefer may benefit from the reduced fees.”
No comments:
Post a Comment