Friday, June 23, 2006

Merchant Interchange Fees May Skyrocket (

[repost from Dec 20, 2005]

In what retailers are calling a scheme by Citigroup Inc.'s credit card business, merchants are poised to pay even more from the nearly 100 separate interchange fees. Citigroup is now introducing five American Express-branded charge cards which may come with higher interchange fees. With AmEx's alliance with Citigroup, we anticipate that CitiCards will aggressive market the "value" of converting to an AmEx Card. The benefit to Citigroup is they get higher fees from merchants. What consumers don't know is that these higher fees are a hidden tax on them.