Debit Card Interchange Fees: Friend or Foe? | MintLife Blog | #SwipeFees


Capitalism isn’t dead yet. Retailers in a competitive market would love to keep big sacks of extra profits, but they can’t—not unless they want to go out of business. “Think of a retailer that sells children’s clothing,” says Ip. “As a result of this ruling, perhaps the retailer’s profit margin goes up by 50 cents. Now, if he was the only retailer who benefited from that, he would be able to keep that 50 cents. But down the hall is another retailer who sells children’s clothing who just caught the same benefit. And they’re going to keep an eye on each other.” No market is perfectly competitive, Ip cautioned, but we’re talking about American retail here.

via Debit Card Interchange Fees: Friend or Foe? | MintLife Blog | Personal Finance News & Advice.

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