Credit Card companies can earn more if they didn’t require small business to pay credit card fees for every charge transaction from their customers. The problem is that most fees eat whatever profits small retailers have on some products. And the effort having to pay at certain cutoff days on the month just doesn’t add any value to the enterprise.

Focus Brands VP for IT Todd Michaud just made an interesting proposition to get rid of this practice with a disruptive new business model for credit card business in an article posted at the retail cum techie commerce site Storefront Backtalk.

Michaud suggests that sponsors ads can turn every credit card transaction into a marketing opportunity and pay ad fees. Card companies can sell ad space on their charge receipts and card signing pads. In short, advertising fees on a flat rate per month can take over merchant fees. Curious, if that will ever sail, but it look quite feasible. What do you think?