Monday, April 02, 2007

"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]