“ABA SAYS JUSTICE DEPARTMENT AND FTC LETTERS MAKE STRONG CASE AGAINST INTERCHANGE LEGISLATION.”
The American Bankers Association does it again. What a surprise that they issue a press release regarding a recent comment regarding the Credit Card Fair Fee Act. What is purely stunning is that the bank trade association could even suggest that the consumer friendly legislation is “plainly anti-competitive and would violate fundamental antitrust principles.” Have they no shame?
Visa and MasterCard with its 80% mammoth market power and well documented anti-competitive practices [See prior ~1200 posts below] is the reason millions of merchants are involved with our class-action litigation.
Shortly, when you do an online dictionary search under the term “antitrust,” Visa and MasterCard will be used as the model for why the named worldwide defendants conspired to illegally fix prices and force merchants to pay supra-competitive Interchange fees. Their actions are the reason we have the protections of the Sherman Antitrust Act.
While the Banks’ trade association’s president, Edward Yingling, said “this legislation will hurt competition and harm consumers, plain and simple,” he is wrong. Competition is non-existent and millions of retailers and consumers worldwide are harmed every day due to the card associations unbridled greed.
Did MasterCard and Visa just give American Express about $4.0 billion dollars to settle the prior antitrust suit [read more] because they are nice guys, or because they violated the law? I look forward to an apology and recognition from the ABA that they were wrong.
Arguments and press releases like theirs is silly. Ex: “The fact is the card payment system brings considerable benefits to all parties to a transaction,” said Yingling. This might have been the same argument the railroads used in the 1800s when they forced farmers to either transport their goods via trains or let it rot. That is also the reason the Sherman Antitrust Act was enacted. Merchants like us [ScanMyPhotos.com] are forced to accept Visa and MasterCard or we will be out of business, just as the farmers were when they were forced to use the railroad network, as merchants are today forced to use the electronic payment network. Differing networks, same violations.
If the ABA was representing consumers and retailers, rather than financial institutions, they would understand the facts, rather than parrot the replies from high-powered legal teams.