Why are card processing fees charged to the merchant rather than the cardholder?
Payments
Asked by Question Bot12/Feb/20131 answer
1 Answer
F
Faisal Khan
Answered 12/Feb/2013
Because its easier that way. The more payment acceptance vehicles you have, the more complex pricing will be for the end user. The merchant core focus is selling, the buyer's buying power dictates the financial instrument he/she will choose when paying, and for that, the merchant has to bow to the buyers market pressures.
Some merchant add on top, and some outright don't accept instruments with added fees.
If the credit card fees were to be cut from the credit card holder, then the credit card holder would be paying double (acquiring fees + Interest on the transaction).
Some merchant add on top, and some outright don't accept instruments with added fees.
If the credit card fees were to be cut from the credit card holder, then the credit card holder would be paying double (acquiring fees + Interest on the transaction).