What are the exchange fees?

exchange fees are a specific type of fee used during handling credit card payment. It is a fee charged by the customer's bank to the retailer bank. This fee consists of most of the fees paid retailers in return for card services. There are claims that fees are higher than otherwise they could be due to anti -competitive procedures in the card industry. Consumers are generally well aware of the fact that companies that companies earn some money by charging interest, claiming late payment sanctions and in some cases charge annual fee to card holders. What is also unknown is that in most cases it produces much less money for companies than exchange fees. What is not so broadly understood, that most of these deductions is accepted by the card holder of the card, not its own retailer bank, although the retailer's bank provides cardboard services. In most cases, the card holder takes somewhere in the region 1.75 to 1.8percentage of the purchase price. A company that is used is used, what is usually a smaller proportion of deduction. The retailer's own bank is usually left with the smallest share of deduction.

strictly, the exchange fee is not deposited directly on the retailer itself. Instead, it is applied to the card holder of the card as a deduction of money that pays the bank of the retailer. In fact, the retailer is still ending with a lower amount of money from the purchase and the exchange fee contributes heavily to deductions. The fees in turn means that retailers charge higher prices to customers than they could do if the deductions were lower.

There has been many controversy on exchange fees, especially complaints that they generally increased, although the technological costs associated with card processing have been decreased. This has caused the accusation that the companies involved unfairly agreed to maintain the fees high. This suspicion wouldLO also driven by some companies exclude the ways to calculate fees, while what is known shows that the fees structures are extremely complicated. Participants generally claim that fees are an essential part of the card business and encourage more companies to issue cards, which gives consumers a larger selection.