What using your credit card costs retailers

By
Real Estate Agent with Stouffer Realty Inc.


30012009

Freakonomics  recently made a post in reference to The True Cost of Credit.  To use this site you need to type in the first 6 digits of your credit card number.  These 6 digits are referred to as the Issuer Identification Number and are the same on every card of the exact same type.

The following information will be available on the next page:

How your card stacks up against other cards with regards to merchant cost to accept

How much it costs a retailer to sell:

  1. A pack of gum
  2. Sub Sandwich
  3. Pizza
  4. Tank of gas
  5. Online book purchase
  6. Groceries
  7. Electricity
  8. Flight
  9. Flat Screen TV

These are then broken down into a dollar amount as well as a percentage of purchase.

 

For example if I use my VISA Rewards to buy a $1.50 pack of gum the convenience store is charged 38 cents or 25% of purchase price.  It also tells you that the average convenience store was charge $52,000 in fees last year.  WOW

 

I like stores that actually pass the savings along by not accepting CCs.

My Favorites are MARCS and ALDI

Yet another amazing find by Freakonomics.

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