The True Cost of Credit | Your Credit Card Costs (552176)

Your Card: 5521 76xx xxxx xxxx

Mastercard Rewards Credit Card issued by Leumicard Ltd.

Rewards cards cost businesses more than non-rewards cards because the credit card issuers pass the cost of the rewards onto the businesses by charging them higher Interchange rates. Rewards interchange rates are typically around 0.30% higher than the rate for a regular card. However, many smaller businesses actually get charged more than 0.30% additional for such transactions because it triggers a downgrade, which allows their credit card processor to charge them as much as an additional 1.50%.

When you use this Credit Card, the merchant pays a fee to process the transaction.
Different fees apply in different scenarios. Here are some examples...

A pack of gum at a convenience store: $1.50

Credit Card Fees: $0.28 (18.7%)

Percent: 1.901% Per-Item: $0.25

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The average convenience store paid $52,064 last year in credit card processing fees (details) - 2.25 times the average earnings of such a store.

Breakdown of Fees
Leumicard Ltd.:	$0.03
Mastercard:	$0.00
Processing Company:	$0.25

Jill's Sandwich Shop: $7.00

Credit Card Fees: $0.36 (5.1%)

Percent: 1.557% Per-Item: $0.24

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A typical sandwich shop like a Jimmy Johns pays about $10,000 each year in credit card processing fees (details) - enough to pay a sandwichmaker for 4 months!

Breakdown of Fees
Leumicard Ltd.:	$0.15
Mastercard:	$0.01
Processing Company:	$0.20

SuperCheese Pizza Delivery: $25.00

Credit Card Fees: $0.95 (3.8%)

Percent: 2.324% Per-Item: $0.35

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The average local pizzeria (not a big chain) pays $11,213 each year in credit card processing fees (details) - enough for a new delivery vehicle.

Breakdown of Fees
Leumicard Ltd.:	$0.68
Mastercard:	$0.02
Processing Company:	$0.25

Tank of Gasoline at a fueling station: $30.00

Credit Card Fees: $0.71 (2.4%)

Percent: 1.928% Per-Item: $0.10

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The average gas station paid $52,064 last year in credit card processing fees (details) - 2.25 times the average earnings of such a store.

Breakdown of Fees
Leumicard Ltd.:	$0.57
Mastercard:	$0.03
Processing Company:	$0.10

Books at Bookseller.com: $50.00

Credit Card Fees: $1.37 (2.7%)

Percent: 2.347% Per-Item: $0.15

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Online retailer bluenile.com paid $6,120,000 in credit card processing fees (details) in 2007.

Breakdown of Fees
Leumicard Ltd.:	$1.25
Mastercard:	$0.05
Processing Company:	$0.05

Groceries at your local Jewel/Osco: $100.00

Credit Card Fees: $1.56 (1.6%)

Percent: 1.415% Per-Item: $0.05

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If everyone used your Credit Card, an average grocery store (with $14M in revenue) might pay $218,400 in fees each year!

Breakdown of Fees
Leumicard Ltd.:	$1.32
Mastercard:	$0.10
Processing Company:	$0.05

Electricity Bill over the phone: $150.00

Credit Card Fees: $1.02 (0.7%)

Percent: 0.143% Per-Item: $0.66

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If everyone used your Credit Card, Exelon might pay $128,155,900 in fees each year!

Breakdown of Fees
Leumicard Ltd.:	$0.65
Mastercard:	$0.14
Processing Company:	$0.01

Flight to California on BlueSky.com: $300.00

Credit Card Fees: $8.15 (2.7%)

Percent: 2.585% Per-Item: $0.11

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In 2007 Southwest Airlines paid $216,000,000 in credit card processing fees (details) - enough to buy 54 MILLION gallons of jet fuel.

Breakdown of Fees
Leumicard Ltd.:	$7.00
Mastercard:	$0.28
Processing Company:	$0.01

Flatscreen TV at Electronics Depot: $800.00

Credit Card Fees: $20.79 (2.6%)

Percent: 2.490% Per-Item: $0.11

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If everyone used your Credit Card, Best Buy might pay $1,040,097,713 in fees each year!

Breakdown of Fees
Leumicard Ltd.:	$13.94
Mastercard:	$0.76
Processing Company:	$0.01

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