Bank-issued credit and debit diminishes military shoppers’ return on investment Published May 27, 2008 By Exchanage News Service DALLAS -- The use and expense of bank-issued cards continued to climb at BXs and PXs last year as processing fees at Army & Air Force Exchange Service (AAFES) facilities for debit and credit transactions jumped approximately 2 percent, ultimately sapping more than $75 million from exchange operations and, in turn, military quality of life programs. While all purchases, regardless of the form of payment used, can help strengthen the exchange benefit, shoppers who use the exchanges' exclusive Military StarSM Card maximize their individual impact on critical Morale, Welfare and Recreation efforts. "Exchange shoppers who pay smartly keep more money in the military community because banks charge an average of 1.85 percent of the transaction total when accepting their credit or debit cards," said AAFES' Chief Operating Officer Mike Howard. "Traditionally, two-thirds of earnings generated from sales at the exchange are paid to Morale, Welfare and Recreation, while the other third is invested in improvements that enhance the shopping experience. With 100 percent of AAFES earnings going back to exchange patrons, decreased fees can quickly add up to additional arts and crafts supplies, reduced greens fees or even a new aquatic center." Since 2001, AAFES shoppers have paid more than $384 million in fees to card-issuing banks, resulting in lost revenues for the military community. Unlike bank cards, profits generated from Military StarSM Card purchases are shared with military communities through contributions to MWR services. These funds reduce the tax burden of all U.S. citizens and are used to fund Youth Services, Armed Forces Recreation Centers, aquatic centers, post functions and golf courses that are enjoyed by military families across the globe. "Using the Military StarSM Card is one of the easiest ways for troops to directly impact their Exchange and MWR benefits," said Howard. "Reducing unnecessary expenses such as bank fees not only go a long way in strengthening the overall exchange benefit, but also the dividend operations annually generate for the military community." The Military StarSM Card is accepted at all AAFES, Navy, Marine Corps and Coast Guard Exchange activities, as well as the Exchange Catalog and the Exchange Online store at www.aafes.com. Authorized exchange shoppers can learn more about the Military StarSM Card by visiting www.aafes.com and clicking on the Military StarSM Card icon.