Friday, September 07, 2007

"The Economic Law of GREED" (Commentary:

With gas prices again surging to record highs - a barrel today is costing more than $77.00 - it seems that even ExxonMobil, Shell and others are somehow able to lower the cost at the pumps.

But, look at the huge merchant interchange fee windfalls and exaggerated profiteering as motorists, truckers and others fill-up at the pumps and are forced to use plastic to charge. While the interchange fees maintain their steep rates, gas prices have actually declined. So, how is it that with gas prices at record highs, the price at the pump (in So. Calif) is about $2.75 for regular?

When a barrel was hovering at about $70.00, the pump price was about $3.25 and more. The Question is: what is artificially keeping gas prices down, and why aren't the credit card associations and member banks also helping to lower their fees too? The Answer, in our opinion: A classic case of illegal price-fixing.

What happened to MasterCard's® plan to cap interchange fees at the pumps to $50.00, and why has Visa® been silent on this issue, and if they agree to putting an interchange fee cap at the pumps, why not on all transactions too?

Interesting Question: Why Only Cap Interchange Fees At The Pumps? (