Quantcast
Channel: WayTooHigh.com » merchant interchange fees
Viewing all articles
Browse latest Browse all 21

You Have to Hand it to MasterCard’s Spokesperson, Sharon Gamsin

0
0

Today’s Associated Press story, “Charges Fly Over Shops’ Credit-Card Fees:  Retailers, Credit Card Companies Battle Over ‘Biggest Credit Card Fee You’ve Never Heard Of,’” has a new twist.

Click here to read the article.

MasterCard’s spokesperson, Sharon Gamsin explained that “The company’s interchange rate has risen less than the rate of inflation…”  Nice point if you didn’t understand that the same technology, innovations and unparalleled growth of telecommunications services that make electronic payments more efficient.  These Moore’s Law advances that should bring down costs (every 18 months costs should be reduced in half) have led to international phone calls for just pennies a minute, a trilobite of memory for a few hundred dollars and so on. 

The point is that MasterCard and Visa’s credit card cartel and its interchange fee pricing structure should not be put in the same equation as the rate of inflation.  These are not eggs and milk; it’s an electronic payment network that relies to a grater degree on the logic of Moore’s Law.  If that were the case, then lap top computers, cell phones and other technology products would be rising, not declining.

As for the price of an international phone call, could you imagine what it would be pre-phone card and back when AT&T held its anticompetitive monopoly?

 



Viewing all articles
Browse latest Browse all 21

Latest Images

Trending Articles





Latest Images