Today's WSJ Editorial On Bank Card Interchange Fees
Today's Wall St. Journal editorial page featured an editorial titled "Credit Where It's Due" that explored the issues surrounding bank card interchange fees.
That said, many small retailers operate on thin profit margins and there does appears to be some merit to their complaint that credit card fees have risen above the levels one would expect in a perfectly competitive market. Interchange fees in the U.S. are among the highest in the world.The editorial concludes by recommending that merchant demands for price controls on interchange fees be ignored.These fees, according to a recent study by economists at the Federal Reserve Bank of Kansas City, have also been paradoxically trending upward in recent years when the industry's costs due to technology and economies of scale have been falling.
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