Losing Money Every Time a Credit Card is Used

July 30, 2009

Read this credit card Interchange updated by Jan Norman, Orange County Register (July 30, 2009)

Excerpt:

The store owners lose money because a growing number of customers use credit cards for small purchases, he says.

The issue has been around for years. 30 Minute Photos Etc. in Irvine was a named plaintiff in a 2005 class action lawsuit against the interchange fees.

“Interchange fees are just a way that credit card companies squeeze merchants to enhance their revenue stream,” according to Mitch Goldstone, partner in 30 Minute Photos and ScanMyPhotos.com.


Merchants Fight MasterCard and Visa Card Fees

July 27, 2009

Watch this ABC WCBV-TV News segment on merchant interchange fees and the escalating battle against credit card company fees.

NewsCenter 5’s David Brown reported that they are unregulated credit cards fees charged to store owners for every credit and debit card transaction. It’s a hidden fee that is eventually passed on to the consumer.


Merchants take a swipe at card fees (via American Public Media)

July 26, 2009

Listen to this radio segment on Marketplace Morning Report.  Every time you charge your Big Gulp at 7-Eleven, a credit card company swallows part of the profit. But Slurpee slingers have had enough of the merchant fees. Stacey Vanek-Smith reports.


New York Times Submitted “Letter to the Editor”

July 23, 2009

In response to Andrew Martin’s July 16th “Card Fees Pit Retailers Against Banks” New York Times article, I submitted this response:

Dear Editor,

I appreciated your thorough article, ‘Card Fees Pit Retailers Against Banks,’ New York Times, July 16, 2009, describing the serious problem of exorbitant and ever-increasing interchange fees incurred by merchants in the United States. 

It is ironic that in a day and age when many businesses face possible extinction due to rapid advancement in technology that card payment systems like Visa and MasterCard continue to thrive and grow using magnetic strips embedded in plastic cards, which is a device closer to the bygone era of carbon copies than to advance technology. 

All merchants should applaud the populist pressure and Congressional efforts to confront this hidden tax on the economy represented by interchange fees.  It is important to note, however, that the problem is even greater for Internet-based merchants who have no choice but to accept payment cards and are captives to this system developed by the banks. 

Perhaps this is the reason that banks impose even higher interchange fees on internet merchants, who also often receive no payment guarantee.  That is why we, along with many other traditional merchants, both large and small, are leading efforts in the In re Payment Card Interchange Fee antitrust lawsuit in the Eastern District of New York to eliminate interchange fees and other abusive rules imposed on merchants. 

Hopefully, through our efforts, combined with those of other merchants, their customers and Congress, we can succeed in eliminating this abuse of market position by the banks and their card companies.

Sincerely,

Mitch Goldstone
President/CEO ScanMyPhotos.com

 Mr. Goldstone edits WayTooHigh.com, The Credit Card Interchange Report covering news and commentary on his battle against Visa and MasterCard

 Additional comments are posted on the NYT’s community forum website.


Banks Hike Up Their Fees (via CBS Evening News)

July 17, 2009

Watch CBS Videos Online
With mortgage defaults and unemployment still on the rise, big banks are still taking a beating on bad consumer loans. To offset those losses, banks are hiking up their fees. Anthony Mason reports.


Visa puts another $700 million in litigation fund

July 17, 2009

Via CNBC: Visa Inc., the world’s largest credit and debit card processor, said it has deposited $700 million into an account earmarked for litigation costs, a move that essentially acts as the repurchase of class B shares. Read more