Thursday, February 02, 2006

UK's Office of Fair Trade Launches New Investigation in Credit Card Charges (The Daily Telegraph)

The UK's Office of Fair Trading has launched a new investigation into MasterCard as it "has reasonable grounds for suspecting" that the way transaction fees are set may break competition rules. - The Credit Card Interchange Report, which began chronicaling interchange issues nearly one-year ago has always called the fees a hidden tax on consumers. Now, from overseas, England is following this theme.
Reuter's reports that the OFT said "the interchange fees, which retailers pass on to shoppers by raising prices, were excessive, and likened them to a tax on consumers."

MasterCard is again in the spotlight.

The OFT's decision and a companion paper are available on its website.

[source: The Daily Telegraph, Reuters]