Business Week reports that despite the fact that retailers have spent years of effort and millions of dollars to convince the US Congress to legislate against what they believe are extravagant and outrageous interchange fees on credit card transactions, they seem to be getting relatively little traction.
In part, it is because the Congress and the Obama administration have been preoccupied with other issues, such as health care and other finance-oriented legislation that seem to have become greater priorities. In addition, the card companies have been doing their own lobbying, arguing that any legislation would restrict their ability to offer credit card services during a time when credit already is tight.
In part, it is because the Congress and the Obama administration have been preoccupied with other issues, such as health care and other finance-oriented legislation that seem to have become greater priorities. In addition, the card companies have been doing their own lobbying, arguing that any legislation would restrict their ability to offer credit card services during a time when credit already is tight.
- KC's View:
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I’m not buying the credit card companies’ argument at all. They are gouging consumers and using retailers to do it.
What I don;t understand is why Congress and the Obama administration don’t move this up the priority list. Seems like a fairly easy and logical win - for consumers, at least, who also happen to be voters - at a time when they could use one.
But I suppose that politics make everything difficult. (How’s that for a pithy and revelatory observation...?)
