The People vs. Credit Card Company X…

• When you buy something with a credit card, the retailer generally owes the credit-card company 1.5-2% (or more depending on the card) of the purchase price. Many retailers pass that cost onto their customers in the form of a 1.5%-2% price increase.
• But since there’s only one purchase price, customers paying in cash are actually paying more than they have to since the price includes a fee the retailers aren’t paying on that transaction.
• The U.S. Senate is trying to pass new legislation that would change that, allowing retailers to charge less for using cash. But retailer/credit card company contracts could get in the way.

Facts & Figures

• To abide by their contracts and offer price discounts, retailers would have to post two prices on each product, and the credit card price would have to be larger.
• The legislation would allow discounts for cash, checks, and debit cards.

Best Quote

“Cash customers pay a penalty because we take credit cards.” – Jeff Miller, President of Miller Oil Co.