Stop credit card fees?

Have you seen this yet? You go to 7-11 and they have these signs over the terminals that say stop excessive credit card fees, with a petition for you to sign to send to your congressmen. Now thinking at first glance this might be the evil credit card companies trying to take advantage of local businesses. Oh but there are problems with this.

See there are two ways credit card companies make money. There is the interest rate they charge the card holder, and by charging merchants a fee per transaction. In some cases, like bank check cards, this is the only way those companies make money is off the transactions.

So what would happen if these businesses get their way? Well We all know that these credit card companies would not sit idly by and lose so much income with out trying to get it from some where else. Hmmm who do you think that would be? You guessed it the consumers. So in an effort to make more profits these business want to pass their charges on to you the consumer.

Do yourselves a favor and do not sign this petition.

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