Credit card fees cutting into small businesses

WILMINGTON, NC (WWAY) — Consumers rejoiced when the government enforced stricter credit card regulations, but now credit card companies are swiping the profits from small businesses. Credit card companies can no longer increase interest rates for responsible consumers, but they have increased fees for small businesses.

At 17th Street Deli in Downtown Wilmington credit card companies increased the fee on each transaction by half a percent. Just to swipe the card costs at least 12 cents for a credit card and 25 cents for a debit card.

“It’s a penny business,” owner Chris Constantini said. “We only make a 10-percent profit, and when Visa and Master Card and stuff like that comes in and they’re taking five percent of your profit, it can put you out of business very quickly.”

To help save some of the money from the fees, the deli only accepts cards for orders over $15 and gives discounts for cash customers.