The bank funded association called Electronic Payments Coalition issued the following press release which is largely debunked from many of the prior WayTooHigh.com postings. It is as silly as Senator McCain’s commercial attempting to link Senator Obama with Brittney Spears and Paris Hilton.
Personally, I cannot think of anything more anti-competitive than interchange fees, along with Visa and MasterCard’s business model; leading to a nearly $50 billion annual hidden tax on Americans.
What was so remarkable about the below news release was the public comments by Visa and MasterCard. Collectively, Josh Floum, general counsel for Visa Inc. and MasterCard both boldly described their industry as being “fiercely competitive.” With a staggering 80% market power and unbridled control over the world’s electronic payment network, the reality is they are fierce, but only to protect their cartel at all costs to benefit their member banks, rather than consumers. Average shoppers are forced, along with merchants, to pay this nearly $50 billion annual hidden tax that is no longer based on cost, but rather pure greed. Mr. Floum even said that if the Credit Card Fair Fee Act is passed it will “suppress competition and innovation and result in unintended and harmful consequences for consumers.”
I have not read this type of scare tactic since the Washington, DC, public relations firm, Creative Response Concepts concocted the “Swift Boat” campaign, so I would not be surprised if that firm are also regular readers of WayTooHigh.com.
From the below press release, the card association’s claim that their fees on gasoline are only a penny or so a gallon, then why does ARCO discount as much as they do or Mr. Small gas station immediately cut prices by 10 cents a gallon when they have a cash option? And, why are thousands of independent service station owners being forced to close down, as interchange fees have doubled along with gas prices?
The Electronic Payments Coalition press release is reprinted in its entirety, below.