Had a heart to heart with a restaurant owner about interchange fees

I was helping my buddy's pizza place in Denver set up his card terminal and he flat out told me he hates how the full cost isn't shown upfront. He said he'd rather pay a flat 50 cents per swipe than get surprised by a 3% fee on a $200 tab because someone used a rewards card. That conversation hit different because it made me realize we in this industry defend tiered pricing but never explain how it actually hurts small shops. Has anyone else gotten pushback from a merchant who just wants one simple predictable number?

3 comments

3 Comments

vera_green6923h ago

Read somewhere that Visa alone pulls in billions from swipe fees.

pat_harris18h ago

@vera_green69 You bet they do, and it's a racket every time I use my card.

jana50915h ago

Hang on, isn't all that convenience and fraud protection worth a couple pennies here and there? Without those fees, we'd probably be paying cash for everything or dealing with way higher merchant costs.