Wednesday, January 24, 2007

Shouldn't Technology Lower Interchange Costs? (

We have long advocated that technology increases efficiencies and helps lower costs. That is unless you have a service that is controlled by unbridled collusion and (allegedly) illegal price-fixing by agreement.

Another example is our newest service launched today. Just one year ago, we were charging up to $5.00 to scan a single photograph. Then, with the application of new Kodak imaging high-speed scanners and Kodak Capture software, we designed a new flat-rate scanning service for just $49.95 to scan up to 1,000 photos, instantly! That was fast and garnered great media buzz and excitement at the recent Consumer Electronics Show educational panel which we addressed.

We mentioned that like most services today, everything must be effortless, instant and inexpensive. That raises the question of why our independent photo specialty retail and national online boutique photo service can employ technology and entrepreneurial smarts to create an entirely new market and share extraordinary saving with our customers, while the credit card association's continue to raise their fees?

For us, 1,000 photo scans for $49.95 was old news. Now, we just launched for unlimited photo scanning where you "fill-the-box" and get prepaid round-trip delivery too for just $99.95. More info, click here.

If we can continually create new cost savings and efficiently help consumers, why can't Visa and MasterCard?

[Source: commentary,]