Ever wonder who is paying for all those miles you earn on your credit cards? The surprising answer, is merchants like you!
Bank card issuers charge a higher interchange rate for all the loyalty cards. According to TSYS' website - "Interchange, the fees paid to card networks and issuing banks, has risen over time, fueled in part by a need to finance the proliferation of generous rewards programs".
All of this means you, as a merchant, are helping to fund your customers' vacations and other rewards benefits.
With rising labor costs and inflation, our merchants are looking for ways to save costs in their businesses - and many are moving to credit card programs, such as NCA (Non-Cash Adjustment) - which means no more credit card fees for your business!
Our customers that have moved to this program are delighted! They said they like to think of it as a convenience fee for not paying with cash - and a reward for those customers who do like to pay with cash. Someone even pointed out how expensive paying with cash can be - if a person uses and ATM machine to get cash and withdraws $60 - typical ATM fees are $3.00 - that is a 5% fee they have to pay!
And of course - we Alaskans love our mileage rewards cards - so paying 80 cents for the convenience of using a loyalty credit card to buy a beer and a slice of pizza seems like a small price to pay for our tropical vacations!
If you have any questions on this credit card program, or other credit card options, call us at 907-243-2683.
And start dreaming about what you are going to do with all that extra money in your bank account each month!