The government is yet trying its hand at setting pricing for MasterCard and VISA interchange fees. 'Trick or Treat'?
If you're not familiar with those fees, don't worry most con
sumers don't know about them because up until now they may not have mattered to you. Interchange fees are the fees the merchant pays to process a debit or credit card transaction. So, 'trick or treat'?
You decide … A new bill being proposed in the Senate would limit these fees. The optimist is me believes that it may have been crafted with the goodwill of the consumer in mind. I'm sure that the lawmakers felt that consumers needed a 'treat' this Halloween, and reducing the limit of interchange fees MasterCard and VISA can charge a merchant to process your transaction would be better than a 'trick' like toilet-papering your house.
Right? Nope. It's downright scare-trickery. The loss of income earned on these transactions will limit how your credit union can offer debit and credit card products to you in the future.
With a mask on, one might not care whether the credit union's income is reduced or not; however, the question that should be asked is: what does this mean to the consumer when the costume comes off? More money in the pocket? Nope, again.
Even scarier … this interchange fee is what allows the credit union to offer 'free' processing options for debit and credit cards at the merchant's point of sale. That's right. If interchange fees go away, then the life simplified, hassle-free use of your debit or credit card will change. The only group who wins with this legislation is the merchants. They pay less to process each transaction and you can be sure you will not be 'treated' to reduced prices either at the pump or with the clothes or food you buy.
If you've had enough of spooky legislation getting involved in free enterprise (which, by the way, makes 'free enterprise' an oxymoron these days) then please access this link and let your Senator know you object to this new bill.
Come on fellow ghosts and goblins, it's time to find out what really is behind the curtain. Tell me what you think. Is it just me, or does this stuff get scarier by the minute?
New day for me. It's now Tuesday and time to talk tough with Troy.
First of all, those who voted for “bigger government” are getting what they wanted.
These are socialist tactics. Punish the business because the consumer cannot be accountable for their actions. How dare you charge a customer $35 for spending money they don’t have! How dare you charge the merchant to process an electronic transaction! (Thick with sarcasm by the way.)
The more we let this congress and administration into the marketplace, the more socialist we become. The more I get involved in politics, the more scared I become for my children.
Thank you for providing the link above. By using the link, it was very easy to pass along my concern to Senators Graham, DeMint and Congressman Henry Brown, particularly with the content of the message already written!
I saw a great video on youtube about healthcare reform. Here is the link … http://www.youtube.com/watch_popup?v=G44NCvNDLfc
It’s worth the short 3:49 seconds to listen to the commentary. After watching it you may want to be the “headless horseman of sleepy hollow” for Halloween.