Monday, January 15, 2007

"EU Move to Ban Card Fees Would Hurt Consumers, Visa Europe Says" (BBJ)

According to Hungary’s leading English-language business weekly, Budapest Business Journal, Visa Europe's CEO commented to journalists in Brussels that they must resolve legal questions this year about the fees known as interchange.

The article refers to Competition Commissioner Neelie Kroes vowing last year to fine card companies unless they changed their business practices. In our opinion, pawning off their legal liabilities onto the public through IPO's and other games, like covertly posting interchange rates on its website, and limiting interchange fees at the gas pumps are all window dressing. The real issue remains that the two leading card associations stand accused (by us and many others) of anti competitive and illegal price-fixing by agreement violations.

[Source: via Budapest Business Journal]