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
During her time at Glenbrook, Erin focused on client engagements in business payments, cross-border transactions, bill payment, and the intersection of corporate finance, banking, and ERP/accounting. She has nearly twenty years of experience leading increasingly complex payment initiatives for corporate clients and advising financial institutions and payment technologists on the development of their payment capabilities.
Erin is also the founder of Forte Financial, a consulting firm focused on corporate finance efficiency, technology, and process improvement. She is a past president of the Financial Women’s Association of San Francisco and also a two-term past president of the San Francisco Treasury Management Association. Erin is no longer with Glenbrook, but contributed greatly during her time at the firm.