Shedding Light on Debit and Credit Card Fees

The issue of debit card fees versus credit card fees continues to confound not only merchants, but consumers, too. While merchants are charged a higher rate for signature-based card transactions -- compared with about 20 cents for a card transaction where a customer enters a PIN number -- some banks are now charging their customers a fee for using their PIN number in an attempt to encourage customers to sign for credit card transactions. Bewildered over the new charge, some consumers have incorrectly directed their anger over the fee toward the retailer rather than their bank.

The bottom line is, the debit versus credit card situation seems to be misunderstood by many a retailer and consumer, which is why an article in the September 2004 issue of Stores magazine, "Duking It Out: Merchants and Bankers Spar Over Debit Card Fees," is must-reading for independent booksellers. To read the article, go to www.stores.org/archives/2004/09/cover.asp.

For a previous BTW article on debit card fees, click here.