Comments on: Credit card interchange fee datapoint of the day http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ANIL http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-6033 Thu, 27 Aug 2009 18:24:50 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-6033 HI TO EVERYBODY, ITS FOOLISH TO SEE THE DIFFERENCE OF MONEY WITH CASH AND CREDIT CARDS, BUT THE MERCHANT IS WRONG TO BEHAVE LIKE THIS, HE MUST NOT COLLECT MORE THAN THE TAX.

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By: sam http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-5013 Wed, 05 Aug 2009 16:28:30 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-5013 Martin is right that lower interchange fees might not mean lower prices for consumers. But they would improve value in other ways.

Could you elaborate on the “other ways” it would create value? There is no follow up on this claim, which seems central to your argument that interchange is an issue that needs to be addressed by government.

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By: Angiebooks http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4849 Fri, 31 Jul 2009 13:37:06 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4849 Im not a fan of interchange but I am a fan of sales. When a customer uses a credit card they tend to spend more and worry about their bill later. If we were to get rid of credit card interchange or do somthing to reduce credit card usage I think you’ll see companies start losing sales/profits.

So what to do? Add more competition. Create a another payment network. Someone out there with mucho bucks should create a another network to compete with with amex, visa, mc, discover. More competition would force these guys to bring interchange down…my two cents….

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By: JC http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4358 Fri, 17 Jul 2009 19:15:42 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4358 Once again you’ve missed the point. Interchange is a problem in search of a solution. Mega retailers want to line their pockets, not pass savings to us. And if it was true that savings would be passed to us, then Congress should limit everything that affects price–not just transactions fees.
Your logic seems to suggest that bad policy in the name of consumer good is a positive gain.
This isn’t liberal view vs. conservative or the big bad banks…this is business on business crime that will only hurt small credit unions like mine.

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By: enplaned http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4346 Fri, 17 Jul 2009 18:23:23 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4346 The simple way to reduce interchange fees is to do what Australia did a while back. Make it illegal for credit card issuers to prevent merchants from providing a discount for cash.

Credit card agreements prevent merchants from offering a discount for cash. If merchants could provide a discount for cash, the use of credit cards would diminish significantly, and interchange fees would drop similarly.

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By: ryan http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4332 Fri, 17 Jul 2009 14:46:48 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4332 the hoagie place at my college charged an extra 50 cents for every credit card purchase. it definitely changed my behavior, even though they probably profited off of credit card transactions with a surcharge lke that.

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By: Sam Penrose http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4307 Fri, 17 Jul 2009 00:25:17 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4307 How do the total costs of credit cards and cash compare. Note that cash has to be repeatedly counted, carried, stored in safes, moved in trucks, lost to thieves ….

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By: scott m http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4287 Thu, 16 Jul 2009 20:18:02 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4287 I know it isn’t necessarily true for big retailers, but the card companies often force small businesses to agree to charge the same price regardless of payment type in order for the business to be able to accept cc at all. So the market doesn’t get the chance (usually businesses just won’t accept the higher players like diners, amex).

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By: MichaelB http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4286 Thu, 16 Jul 2009 20:17:39 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4286 Most credit card agreements between the merchant and the card company prohibit such fees. They also prohibit minimum charges to use a card. I suspect that even large retailers don’t have a lot of bargaining power to adjust the standard contact. Home Depot would probably lose a lot of business if they didn’t accept Visa, so they’re somewhat stuck.

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By: Silicon Valley Chuck http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/comment-page-1/#comment-4281 Thu, 16 Jul 2009 20:02:53 +0000 http://blogs.reuters.com/felix-salmon/2009/07/16/credit-card-interchange-fee-datapoint-of-the-day/#comment-4281 In California, it’s illegal for a retailer to add a surcharge for a credit card… but it is legal to offer a cash discount. This law would have to change for your proposal to be legal in CA.

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