The True Cost of Credit | Your Credit Card Costs (3713867)

Your Card: 3713 867x xxxx xxxx

American Express Credit Card

American Express cards typically cost businesses about 0.77% more than Visa, Mastercard and Discover cards. Unlike Visa and Mastercard, where the rates for each transaction are set according to a set of rules called Interchange, American Express negotiates their rates on a business-by-business basis, which results in some large retailers (Costco, Trader Joe's) getting much lower rates than their smaller competitors. Check out this blog article for more information on American Express Discount Rates.

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: $0.30 (20.2%)

Percent: 3.500% 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
Amex:	$0.05
Processing Company:	$0.25

Jill's Sandwich Shop: $7.00

Credit Card Fees: $0.45 (6.4%)

Percent: 3.500% Per-Item: $0.20

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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
Amex:	$0.25
Processing Company:	$0.20

SuperCheese Pizza Delivery: $25.00

Credit Card Fees: $1.13 (4.5%)

Percent: 3.500% Per-Item: $0.25

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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
Amex:	$0.88
Processing Company:	$0.25

Tank of Gasoline at a fueling station: $30.00

Credit Card Fees: $1.15 (3.8%)

Percent: 3.500% 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
Amex:	$1.05
Processing Company:	$0.10

Books at Bookseller.com: $50.00

Credit Card Fees: $1.80 (3.6%)

Percent: 3.500% Per-Item: $0.05

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

Breakdown of Fees
Amex:	$1.75
Processing Company:	$0.05

Groceries at your local Jewel/Osco: $100.00

Credit Card Fees: $3.55 (3.6%)

Percent: 3.500% Per-Item: $0.05

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If everyone used your Credit Card, an average grocery store (with $14M in revenue) might pay $497,000 in fees each year!

Breakdown of Fees
Amex:	$3.50
Processing Company:	$0.05

Electricity Bill over the phone: $150.00

Credit Card Fees: $5.26 (3.5%)

Percent: 3.500% Per-Item: $0.01

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If everyone used your Credit Card, Exelon might pay $663,321,067 in fees each year!

Breakdown of Fees
Amex:	$5.25
Processing Company:	$0.01

Flight to California on BlueSky.com: $300.00

Credit Card Fees: $10.51 (3.5%)

Percent: 3.500% Per-Item: $0.01

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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
Amex:	$10.50
Processing Company:	$0.01

Flatscreen TV at Electronics Depot: $800.00

Credit Card Fees: $28.01 (3.5%)

Percent: 3.500% Per-Item: $0.01

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If everyone used your Credit Card, Best Buy might pay $1,401,305,288 in fees each year!

Breakdown of Fees
Amex:	$28.00
Processing Company:	$0.01

Go Back, and Try Another Credit Card...

If you are a business owner unhappy with your credit card processing fees you may benefit from the credit card processing calculator, another free tool from TransFS.