It’s a Card Game (

May 29, 2007

In Australia, as the Reserve Bank moves to further reduce interchange fees, the banks are shifting their card brands towards Amex, because according to The Australian, those cards are not regulated. We are seeing a growing transformation in the U.S., where banks are issuing Amex-branded cards to replace those of the two leading card associations. This means that consumers and merchants are facing extraordinarily higher fees for processing electronic payments.

Prior Related Postings

Merchant Interchange Fees May Skyrocket (

American Express Tarnished, the Brand Leader’s Cache Faces Saturation (

MBNA-AmEx Relationship Threatened (The News Journal / Bloomberg News)



"RBA Threatens Card, ATM Fee Cuts" (via The Austrialian)

May 29, 2007

"Credit Card Interchange Fees Spark Disputes Among Small Business Merchants" (Pittsburgh Tribune-Review)

May 27, 2007

"Visa’s Changes Muddy Interchange Waters (Green Sheet)

May 26, 2007

"Cards Bring Few Rewards" (St. Petersburg Times)

May 23, 2007

"Merchants, Pay Attention to Rising Credit-Card Fees" (

May 21, 2007

Shouldn’t Technology Lower Interchange Fees? (commentary:

May 21, 2007, a division of 30 Minute Photos Etc. is profiled in two more leading national magazines [Reader’s Digest, June issue. page 197; Women’s Health Magazine, June issue. page 56].

What does this have to do with the multi billion dollar antitrust merchant interchange litigation?

Quite a bit.

As technology advances, the costs are supposed to decline; this is further explained by Moore’s Law. For us, we invented an entirely new business model that is being followed throughout the photo imaging industry. Rather than charging $5.00 to scan a single picture, we charge just 5-cents for scanning 1,000 photos, or $100 to scan upwards of 1,600 4×6″ photos when you fill up our prepaid box. But, when it comes to the credit card associations, they allegedly practice anti competitive price-fixing by agreement which is illegal, but helps artifically raise their fees, rather. Think of the old manual credit card imprinters and multi-carbon-copy forms which had to be manually processed, mailed out of state and cleared – that is what the cost-based interchange fees were designed for.

Related Postings
Why Interchange Fees Concern Retailers and Consumers (commentary:
Growing List of Reasons to Lower and End Interchange Fees (
Shouldn’t Smart Cards Remedy Soaring Interchange Fees? (
Background Reference to 30 Minute Photos Etc (from Rochester D&C)
[Source -commentary:]