PaymentsSource Interviews CardX CEO on Oklahoma Result, Market Trends for Surcharging

“[A]t the rate interchange fees have risen, merchants have to give surcharging some serious thought now, CardX’s Razi said. In his own business, Razi said his company’s services have attracted interest from more large merchants than in the past.

While declining to give numbers related to his client database, Razi said processing volume for merchants who adopted CardX in 2019 was $1.2 billion.

Citing a Wall Street Journal report, CardX tells its clients that interchange fees have gone up 77% since 2012, at an estimated $64 billion in Visa and Mastercard credit and debit interchange alone last year.

Without surcharging, those costs get passed along to all consumers, including those who prefer cash, Razi said.

‘That is a negative thing because people with cash and debit cards are generally from a lower socio-economic [bracket] and often underbanked consumers,’ he added. ‘They are paying more for rewards of credit card users, and that is a regressive subsidy.’”

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