Saturday, September 01, 2007

Why Is The Interchange Fee Scheme Inflationary? (Commentary,

Even gas prices are declining.

The Federal Reserve and the Executive Office are stepping in to help lower interest rates to protect risky real estate investments, where people effectively rented their homes and gained huge tax incentives to borrow against phony valuations.

Seemingly most fees and rates are being lowered, except the bank controlled $40 billion dollar annual fiefdom they created which is now used to extract a hidden tax from merchants and consumers. If only they agreed to our recommendation to post the exact interchange fee on every debit and credit card receipt to transparently present how their scheme works.

We regularly point out that technology and efficiencies are helping to lower rates for products and services, but as far as MasterCard®, Visa® and its member banks, they seem to have missed that lesson on Moore's Law. Even our photo scanning business is garnering nationwide attention for helping to lower the cost to preserve generations of analog pictures.