Investor’s Business Daily reports that there seems to be no letup in the tensions between retailers and credit card companies.
“Relations between merchants and the credit card industry are heated,” the Daily writes. “Retailers are going to court over rising credit card fees. And over fears of fraud costs too, after a hacker attack potentially exposed more than 40 million cards to fraud.
“Meanwhile the card industry says it's being proactive, that its work helps stores sell more and reduce risk.”
The fact is that retailers already have won a $3.4 billion antitrust case against Visa and MasterCard, and a new suit has been launched by a group of stores against credit card companies over interchange fees, charging that they illegally colluded to raise rates.
“Relations between merchants and the credit card industry are heated,” the Daily writes. “Retailers are going to court over rising credit card fees. And over fears of fraud costs too, after a hacker attack potentially exposed more than 40 million cards to fraud.
“Meanwhile the card industry says it's being proactive, that its work helps stores sell more and reduce risk.”
The fact is that retailers already have won a $3.4 billion antitrust case against Visa and MasterCard, and a new suit has been launched by a group of stores against credit card companies over interchange fees, charging that they illegally colluded to raise rates.
- KC's View:
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We have long felt and written that the credit card companies are thieves that need to be smacked around and cut down to size.
Our biggest complaint is about the branded debit cards that have been supported by millions of dollars in advertising and that are costing far more in transaction fees than, say, PIN-based debit cards. Retailers and customers don’t seem to realize that these increased fees lead to higher prices.
So here’s what we think ought to happen. The Food Marketing Institute (FMI) and other retailing associations ought to join together and urge ALL their members to stop taking the signature-based Visa and MasterCard debit cards. Just boycott them…and link that to a broad-based marketing campaign informing consumers about how these cards are costing consumers a fortune.
Among other things, this would reinforce in the minds of consumers the notion that retailers are working for consumers…which certainly is a positive message to get out there.
