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 (WayTooHigh.com)
American Express Tarnished, the Brand Leader’s Cache Faces Saturation (WayTooHigh.com)
MBNA-AmEx Relationship Threatened (The News Journal / Bloomberg News)
May 21, 2007
ScanMyPhotos.com, 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 ScanMyPhotos.com 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 WayTooHigh.com Postings
[Source -commentary: WayTooHigh.com]