Credit card firms make money on all

It is disappointing to see the credit card companies spread propaganda that credit card holders who pay their balances in full monthly are somehow "subsidizing" those who choose to carry a balance and incur fees ("New credit card restrictions put an end to subsidies funded by the less fortunate," May 24).

Merchants who accept credit cards must pay an interchange fee of 1 percent to 5 percent plus a transaction fee of 50 cents or more. These costs are passed onto the consumer as part of the purchase price. As a result, someone like me who charges over $25,000 per year, pays $600 to $1,000 per year that goes to the banks and credit card companies.

I'm sure this is far in excess of what it cost to handle these transactions. The credit card companies may be greedy but they're not stupid.

I'm sure they would cancel my card in an instant if they were losing money on me. Instead they are using news of the legislation concerning credit card fees to spread the myth that they will have to charge annual fees so that those card holders who pay their balances in full will now have to pay "their fair share."

Marc R. Saucier
Littleton
boston