Consumer Payment Card News

Fee Impact

A new report has discovered only 16% of consumers believe retail merchants would lower prices if payment card fees were reduced. About 22% of Americans feel there would be some small changes. The new study by Javelin Strategy also found 62% of consumers believe merchants would nothing and that prices would remain the same. This compares to a 56% figure for 2006. About 11% feel that merchants would eliminate fees for some transactions and 11% expect merchants would lower prices only for card transactions. In 2006 about 19% expected merchants would lower prices overall, but this dropped three percentage points for 2007. Javelin noted the position that consumers take with regard to merchants is notably different when dealing with small, locally owned businesses compared to large chain merchants. Consumers show a greater willingness to align themselves with locally owned businesses.

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