why do credit card co. charge a hefty 1.5% to 2.5% transaction fees from sellers.i know of an instance when i purchased an lowcost airticket from a travel agent for Rs. 2500/- , he asked for 2 % extra transaction fee, on my reluctance to pay the transaction fee,he showed me the calculation that he had recieved Rs.5% of basic fare i.e., Rs.1200/- coming to Rs.60/- as commission & he had to pay Rs.50 i.e.2% of Rs.2500/- as transaction fee , finally left behind with just Rs.10 . I think he was justified in charging transaction fee from me when he had very low margin.
Profit margin day by day decreasing...even credit card co. should charge smaller percentage. Credit card consumers should not forget the lucrative gifts given by card cos. are paid out of this transaction fee. Which in turn is forced on traders & finally consumers bears the brunt.
