USA Today touts no-signature transactions

by Erin McCune on October 10, 2006

in Payments News

USA Today features an article on the convenience – and hidden costs – of no signature small dollar credit card transactions. CardWeb.com estimates that the number of small dollar transactions has increased elevenfold since 2000.

Card companies are increasingly allowing no-signature transactions for
purchases of less than $25 at movie theaters, pharmacies, convenience
stores and fast-food restaurants. Their goal is to speed up the
checkout process and get more people to pay for everyday items with
plastic.
[Excerpt from USA Today]

Merchant Perspective

BENEFITS

  • Faster checkout
  • Higher spend on plastic vs. cash

COSTS

  • Transaction fees (1.8 – 2.4%)

Consumer Perspective

BENEFITS

  • Convenience

COSTS

  • Risk of increased debt as more and more transactions migrate to credit
  • Higher prices as merchants pass on transaction fees

Buyers whip out plastic for small stuff
By Kathy Chu
USA TODAY
10/10/2006

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