The Wall Street Journal reports that more and more merchants are challenging the transaction fees charged by banks through Visa and MasterCard, “alleging that banks -- acting collectively through Visa and MasterCard -- are illegally fixing prices. Some recently have won large, undisclosed settlements with Visa and MasterCard that slash the charges, known as interchange fees. Wal-Mart Stores Inc., the nation's largest retailer, won concessions valued at more than $1 billion, while others, including Best Buy Co., Toys ‘R’ Us Inc., Home Depot Inc. and CVS Corp. are negotiating or have already won fee cuts, lawyers close to these cases said.”
The banks make more than $20 billion a year in transaction fees, according to the WSJ. If new legal challenges to these fees are successful, the paper suggests, it “could prove more costly than the $3 billion settlement merchants won in a court fight last year over debit card fees.”
The banks make more than $20 billion a year in transaction fees, according to the WSJ. If new legal challenges to these fees are successful, the paper suggests, it “could prove more costly than the $3 billion settlement merchants won in a court fight last year over debit card fees.”
- KC's View:
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It is our opinion that all these banks are thieves, charging usurious rates and establishing self-serving policies at every corner that hurt businesses and consumers.
If storing the money in a mattress were a legitimate option, we’d think about it.
