GRAND JUNCTION, Colo. (KKCO) - A new study out finds credit card companies are raising interest rates across the board. But this hike isn't just affecting consumers, business owners are also being hit.
For many businesses, checks and cash have fallen to the wayside. "Thirty five years ago we'd get two or three credit cards a day now we do almost 80 percent credit cards," says Dos Hombres Owner Scott Howard. The Dos Hombres restaurant in the Redlands accepts most major credit cards. Howard says it's something he has to do but it does cost him. "Every time you swipe a card there is a fee," he says.
All credit card companies charge businesses a fee to let them use their services. Last month alone Howard paid over $3,000 in charges, an amount he says is up from last July. Howard says, "The fees started going up and up and my bills started going up and up."
Aside from the swipe charge, a credit card company adds a fee for cards that earn miles, rewards points or other benefits. Howard says, "There must be 30 different kinds of credit cards that get up charged." Howard says not taking credit cards is not an option it’s just something every business has to deal with.
"We are trying to run a very small margin and every little percent counts even if it's just a credit card charge," says Monty Haltiner at Crossroads Wine and Spirits.
He says they haven't found a way to avoid paying for credit services but they have found a way around them. It's something loyal customers bring in for every purchase. Haltiner says, "They bring in cash cause they know that we actually make a little more money if we bring in cash."
While cash may be the antiquated form of payment it might be cheaper than paying with plastic because of those passed on expenses. Howard says, "Cause in the end the customer pays for it."