No Trust in Big Banks, Reports The Off Market Association

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There is a good reason why many businesses are turning to smaller banks and alternative lending sources; quite simply Americans no longer trust the big banks due to a multitude of reasons. There have been several surveys over the past few months pointing out these facts, highlighted by a recent statement coming from the Merchants Payments Coalition (MPC), an organization of merchants who are concerned with the increases in credit card swipe fees.

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There is a good reason why many businesses are turning to smaller banks and alternative lending sources; quite simply Americans no longer trust the big banks due to a number of reasons including unfair fee practices. There have been several surveys over the past few months pointing out the same fact, highlighted by a recent statement coming from the Merchants Payments Coalition (MPC), an organization of merchants who are concerned with the increases in credit card swipe fees.

“What is surprising,” said Lyle Beckwith, Sr. Vice President for Government Relations at the National Association of Convenience Stores, a MPC member, “is the amount of money the big banks spend on public relations and advertising without improving their image.”

“Despite banks running multi-million dollar advertising campaigns, big bank images on Main Street are not improving. Big banks are getting stronger but are not lending to small businesses, they are making huge profits but were bailed out by the government, and they are viewed as charging higher fees to both consumers and businesses - which only increases their profits,” added Terry Robinson, president of the Off Market Association and Sunovis Financial.

Swipe fees for credit cards have tripled in the past 8 years and are now responsible for over $50 billion a year in bank revenues. It comes as no surprise that when the MPC polled Americans back in 2010 that the majority of them felt that credit card swipe fees were unfair to both merchants and consumers. What is even more inexplicable is that American merchants pay 8 times the amount that European merchants pay in swipe fees for the same service from the banks.

Recent surveys are finding the same mistrust:

In December 2012, GoBank conducted a State of the Bank survey, which showed that the majority of Americans do not trust banks. Highlights of the survey include the 87 percent of those polled who felt the banks were not transparent and 68 percent who felt that banks were not on their side. In addition, many were surprised by the bank fees and feel that they are unfair.

Gallup also conducted a banking survey in June 2012 that backs up the Gobank results. In that survey a record 21 percent said that they have great confidence in American banks, while 35 percent claimed they had very little or no confidence in American banks. Americans confidence in their banks is at the lowest level since Gallup began tracking such confidence in 1979.

Swipe fees are rising faster than both health care costs and college expenses and are the second largest expense for merchants, who pass these fees along to consumers in the form of higher prices. So, higher swipe fees make merchants less competitive and they increase prices for consumers. With swipe fees for credit cards being 8 times higher than in Europe, and the highest of any country in the industrialized world, it is no surprise that Americans no longer trust their banks.

About The Off Market Association
The world is changing and has changed. Old ways of doing business don’t always apply. The Off Market Association (OMA) brings a new, exciting and visionary way to do business to all our members.

OMA uses a cutting edge technology and platforms, a deal desk, and extensive contacts across the US for commercial real estate transactions, bank note sales, small business advising and SBA loan services. The OMA is affiliated with Sunovis Financial and Genesis Capital to provide investors with access to capital and quick financing.

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Kathy Heshelow
Sunovis Financial | OMA
415-967-0709
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