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MASTERCARD & VISA PRICE FIXING HAS RETAILERS
DEMANDING ACTION
May 20, 2008 - Rep. John Conyers (D-Mich.), chairman of the House Judiciary Committee, is
the co-sponsor of the bill to cap transaction fees between merchants and the nation's two
largest credit-card companies, Visa and MasterCard. The transactions are estimated to
generate nearly $42 billion in annual revenue to the two card firms.
Proponents of the bill charged Visa and MasterCard with price-fixing for electronic payments.
They claimed the two collude to set the price and offer it up to merchants as a take-it-or-leave-it
proposition. They projected that the fees add about $2 to every $100 consumers spend in
stores, or 2% of the price tag.
"It is clear that the price for a cashless society is too high if you let the credit-card industry fix
the rate," said Thomas Robinson, vice president of regulations for the National Association of
Convenience Stores. He also owns a chain of convenience stores and gas stations in
California.
"We need legislation to at least make this playing field level," he added.
Click on the red link above to continue the story.
Source: MarketWatch
DEMANDING ACTION
May 20, 2008 - Rep. John Conyers (D-Mich.), chairman of the House Judiciary Committee, is
the co-sponsor of the bill to cap transaction fees between merchants and the nation's two
largest credit-card companies, Visa and MasterCard. The transactions are estimated to
generate nearly $42 billion in annual revenue to the two card firms.
Proponents of the bill charged Visa and MasterCard with price-fixing for electronic payments.
They claimed the two collude to set the price and offer it up to merchants as a take-it-or-leave-it
proposition. They projected that the fees add about $2 to every $100 consumers spend in
stores, or 2% of the price tag.
"It is clear that the price for a cashless society is too high if you let the credit-card industry fix
the rate," said Thomas Robinson, vice president of regulations for the National Association of
Convenience Stores. He also owns a chain of convenience stores and gas stations in
California.
"We need legislation to at least make this playing field level," he added.
Click on the red link above to continue the story.
Source: MarketWatch
