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July 27, 2008

Competition and Interchange Fees

The latest weekly edition of Financial Insights' FinSights Advisor newsletter is titled "Will Competition Take A Bite Out of Interchange?" icon_PDF_small.gif . From the abstract:

"New competitors are taking on Visa and MasterCard’s interchange pricing scheme as both firms have been busy defending themselves against claims of duopoly pricing. The potential for competitive alternatives may never be better. Are card issuers and the networks (primarily Visa and MasterCard) vulnerable to competitive card-based alternatives? How will this story play out?"

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