The cost of processing transactions made with debit and credit cards can sometimes be high, and many businesses are now telling consumers that they will no longer accept this payment method.
A growing number of businesses across the country are now warning customers that they will stop accepting debit and credit card payments because the fees charged to them by payment processing networks have become too much to bear, according to a report from the Los Angeles Times. Typically, credit card interchange fees can amount to about 2 percent of a purchase, and these charges can add up to several thousand dollars for even the smallest businesses.
The latest major company to do so is financial giant John Hancock, which recently informed long-term care insurance customers that it would soon only accept payments for policies made by check or automatic withdrawal from a checking account, the report said. In a letter to customers, it specifically said fees associated with the billing method were too high.
Consumers who are looking to get out of debt may actually benefit from fewer businesses accepting credit card payments, as it will force them to use alternative payment methods.