January 25, 2010
-
News: Quick Chek Crys Unfair
Now that new legislation will limit how credit card companies asses' interest and fees, lenders have sought out other means to generate income. As a result, debit cards have become the target of new unfair practices and both merchants and consumers are outrages. The latest group to jump on the "unfair debit and credit card industry" bandwagon is the convenience store chain Quick Chek. Quick Chek a family owned company that operates more than 120 stores across New Jersey and southern New York. They are based out of Readington, New Jersey and employ over 2,400 individuals. The company recently supported a petition campaign that collected signatures asking lawmakers to implement new rules and regulations governing credit card companies. Quick Chek is now speaking out against unfair fees and injustices pertaining to debit card use.
According to John Schaniner, Vice President of Sales and Merchandising at Quick Check, the company offers debit and credit card processing as a convenience for their customers. They would gladly shop around for a fairer processor except all the banks charge the same unfair fees. It leaves them with only one other alternative; to not accept debit or credit card payment. Merchants say that sometimes, especially with small purchases, the banks can actually make more money from transaction fees than the merchant makes on the merchandise.
Convenience store chains claim that nearly 70 percent of their customers pay by debit or credit card. Typically, most purchases are under $10. A report released earlier this year by the National Association of Convenience Stores, reported that banks made over $48 billion from card transaction fee in 2008. According to the Federal Reserve, merchants have seen debit card use has increased the greatest; tripling between 2000 and 2006. The number is expected to be even higher for 2009. The group feels they have no alternative but to raise retail prices to help off-set the high transaction fees.