Monday, April 23, 2007

Wednesday, April 18, 2007

"Hidden Interchange Fees Now Total More Than $36 Billion" (MPC)

Friday, April 13, 2007

"Credit Card Fees Surged 22 Percent" (via NACS)

According to a recent NACS news release, "Credit card fees surged 22 percent, rising $1.2 billion to reach $6.6 billion in 2006 and for the first time ever top overall industry profits. Credit card fees now are the industry's second largest expense, accounting for 8.3 percent of industry gross margin dollars, second only to total labor expenses (33.5 percent)."

[Source: via NACS]

Friday, April 06, 2007

Wednesday, April 04, 2007

Monday, April 02, 2007

"First Data Agrees to be Sold to KKR for $29 Bln " (via Reuters)

NEW YORK (Reuters) - Credit-card and payment processor First Data Corp. has agreed to be acquired by private equity firm Kohlberg Kravis Roberts & Co. for about $29 billion cash, but plans to actively seek other bids...

[Source: via Reuters]

"Card Issuers, Retailers at Odds" (via LA Times)

In the April 2nd front page (business) Los Angeles Times feature, a vice president at Visa USA® noted that her local deli does not accept Visa. The article also mentioned that "credit card executives say merchants can always choose to stop accepting their cards." This same argument could have transpired by the robber barons of more than a century ago - which led to inacting the Sherman Antitrust Act. Just as Visa and MasterCard® control an 80% market share of the electronic payment card market, those who controlled the railroads expressed the same callous remarks to farmers when they too explained that they don't have to use the rails to get their goods to market. The same card association executive should have wondered what would happen if her local deli was also operating an internet food delivery business too. Think Zaber's in New York City, they also operate a deli, but without credit cards they would have to close down their ecommerce business. For us, our ecommerce business is 100% reliant on credit and debit card transactions. We are forced to accept their fees and unbridled anticompetitive price-fixing by agreement.

[Source: commentary in response to the April 2, 2006 LA Times article]