OPER is on a mission. We’re trying to help rid the world of credit card fees. You see, when you use your AMEX to pay for gas, swipe for your lunch at the corner deli or pay with your MasterCard at the local barber, those businesses aren’t getting 100% of what you’re paying. According to the U.S. Small Business Administration, merchant account companies can typically charge up to 5% on anything a company earns from credit card transactions. (Source: U.S. Small Business Administration) And for what? So you can swipe a piece of plastic?
According to The Nilson Report, in 2016 $88.39 billion dollars in the US alone was spent on merchant card fees paid to Visa, Mastercard, American Express, Discover, and others. (Source: The Nilson Report) Most of these fees were paid by small businesses, cutting into their already-dwindling profits and often forcing them to raise prices to try and offset these costs.
And instead of these fees decreasing over time, large companies like Amazon, ApplePay, and Square are making it easier for consumers to use their credit cards. Small businesses regularly pay fees in the range of 2-3.5% of each credit card transaction. (Source: Huffington Post)
These fees are charged to the business and generally split between merchant service providers, like FirstData & National Bankcard, credit card issuing banks, like Citi & Chase, and credit card associations, like Visa & MasterCard. (Source: Merchant Maverick) They include terminal fees, payment gateway fees, PCI fees, annual fees, monthly fees, statement fees, network fees and IRS report fees (source: Merchant Maverick). Sound complicated and expensive? It is and that’s why this needs to change!
How do we make it free? Keep reading and find out!