Watch this Andrew Martin reported New York Times produced video about Visa and MasterCard merchant interchange fees. Profile and article includes Mitch Goldstone, president & CEO, ScanMyPhotos.com
Click here to read article
While pleased to see that Visa and MasterCard are reacting to merchant revolts against the two giant card associations, it was especially consoling to notice that the Visa debit card limit was announced just hours after our planned rally against them. Nice timing, Visa!
The problem is that restructuring only a few interchange fees provokes even more questions. There are millions of retailers coerced to pay these supra competitive fees, yet the only relief now are for service stations, and for only gasoline purchases. What about our ScanMyPhotos.com and the millions of other retailers? We all want relief and if Visa and MasterCard can limit fees at the pumps, why not everywhere? The answer to this rhetorical question is that they are giant cartels that have a monology and can do whatever they want…. until now.
The interchange fee limits at the pumps do not address the issues of other skyrocketing inflationary costs on other products and services.
Click here for more information.
[NEWS UPDATE: Olympic Torch Snuffed Out In Paris]
Unfortunately, it wasn’t until after the drunken jubilation subsided that investors are beginning to understand what is at stake. We posted the Visa Inc. SEC filing and risk factors on Dec 22. Why was the media as negligent as investment advisers and underwriters in better not explaining the facts behind the largest IPO in our nation’s history? Was it greed, or the rush to get the deal done at all costs. Now that the party is over and that window of opportunity to complete the IPO is sealed, sobriety comes in a few weeks, when the billions in Federal Reserve loans are called.
Click here to read the Herb Greenberg WSJ article.
As WayTooHigh.com – The Credit Card Interchange Report prepares to post our 1,000 news and commentary update since 2005 – back when we launched what was the first of fifty separate antitrust complaints against Visa, MasterCard and major banks – there are nearly 1,000 prior posting that paint a tapestry of reasons why the banks’ scheme to unload part of their holdings in Visa might not happen.
Today, a reporter suggested we should be happy that Visa Inc. is setting aside a $3 billion reserve for our litigation. No, not really.
The credit card giant is playing an unfriendly game in its pursuit of detachment from their legal liability for illegal price-fixing by agreement. If you step back and read several of our preceding comments, you will notice that when first announced, many hinted that Visa Inc. could anticipate raising $5 billion, then it was $10 billion. Now, it is nearly $19 billion.
Was this caused by unearthly market conditions, inflation or because they were simply padding the amount of money they hope to raise to cover their legal liabilities?The worry is that they could simply use investor proceeds to fund settlement of our litigation and then continue raising merchant interchange rates to more than cover the lost revenues. To us, that is as unfair as are their interchange fees.A review of the earlier credit card litigation identifies that for merchants and consumers, the fair market economy is still broken and there still is no real electronic payment competition. Visa and MasterCard’s cartel-like pricing structure still precludes a real resolution to interchange fees. From the preceding resolution, Visa and MasterCard simply raised other rates to adjust for their penalties, thus more than paying for their fines.