Back to “cash is king”

Letter to the editor

I believe in supporting local businesses in my community, whether it’s the small mom-and-pop gas station on the corner or a large national chain. To me, “support local” isn’t just about who owns the business--it’s about supporting the people who live and work here, our neighbors, friends, and families.

Lately, though, I’ve noticed more and more businesses adding a 3.5% surcharge for using a debit/credit card. That makes me wonder: why?

A debit/credit card is a direct payment from a customer’s bank account. Yet many of these same businesses will gladly accept an old-fashioned paper check, and some will not accept a paper check) without adding a surcharge. Processing a check still takes employee time, carries the risk of insufficient funds, and can involve bank processing costs.

So why is a debit/credit card, which is faster and often more convenient for both the customer and the business, being treated differently?

I understand that businesses have expenses, and I know accepting electronic payments isn’t free. Processing companies charge fees, and I realize those costs can add up, especially for small businesses. At the same time, when customers are trying to support local businesses, seeing an extra charge added to their bill can be discouraging – I visited 3 business, and by the end of the day I had over $4.50 in “extra” cost.

What I’m trying to understand is this: Is the surcharge really necessary? Is the fee something businesses are charged by their bank, credit union, or payment processor? Or is it simply a business decision to pass along the cost of accepting debit and credit cards?

I’m not criticizing anyone--I genuinely want to understand. If you’re a business owner, banker, credit union representative, or someone who works in payment processing, I’d appreciate your perspective. Help me understand why debit card transactions are increasingly carrying a surcharge while paper checks often are not.

I think many consumers would appreciate learning how this works behind the scenes.

Back to “cash is king,” unless it’s a penny.