Thursday, January 11, 2007

Lowering the Interchange Fee Cap at the Pumps? (

Was it an arbitrary number MasterCard® used to identify the interchange fee cap at the pumps last fall? Motorists were limited to paying fees on only the first $50 per fill-up at the pumps. But, as gas prices have plunged to a 19-month low, will the card association recalibrate its pricing matrix and lower the cap at the pumps?

And, since this action presents more proof that they recognized interchange fees cost a fractional amount of what is forced on retailers, placing a limit on gas station fees raises additional questions. Such as, why are interchange fees at Cartier and high-end boutiques not also limited too? It seems that whether it is a tank of gas or fine jewelry, the same windfall profiteering and price fixing assertions can be made.

Will we now see an interchange fee cap of $25 per fill-up, or less?

[Source: commentary -]