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Saturday, January 30, 2010

What did I pay for? Interchange?

Interchange collections totaled $48 billion in 2008, up from $16.6 billion when NRF started tracking the fees in 2001. The higher prices that result from the fees cost the average household an estimated $427 last year, up from $159 in 2001.

Credit card fees are hidden from the consumer and while every business has a right to make a profit, the monopolistic industry of Visa/Mastercard has to be reviewed.  Examples of credit card dominance are the following:
When reviewing credit card programs with major corporations the real costs are not even negotiated since there is no flexibility of interchange fees.  Small business, retailers, and virtually every business that lives in the "plastic credit" world has felt the burden of the credit card companies.

Legislation is currently be reviewed.  I find useful information on this topic at thecreditcardcon.

“The freedom of the city is not negotiable. We cannot negotiate with those who say, "What's mine is mine and what's yours is negotiable.""  ~ John Fitzgerald Kennedy