Bank Card Use Rises at Exchanges

The use at military exchanges of credit and debit cards issued by commercial banks rose about 2 percent last year, according to the Army and Air Force Exchange Service (AAFES). While all purchases at exchanges ultimately benefit on-base morale, welfare and recreation (MWR) activities, AAFES states that the rising popularity of bank cards is cutting into its revenue — and as such, adversely affecting quality-of-life programs. Banks charge fees for each card swipe at the point of purchase, AAFES  says. Based on an average fee is 1.85 percent, AAFES estimates that the service has paid more than $384 million to commercial banks since 2001 as a result. While AAFES has no plans of discontinuing acceptance of bank cards, the service encourages military shoppers to use the MILITARY STARSM Card, available online at www.aafes.com. When shoppers use that card, exchanges do not have to pay fees to commercial banks.