Posts Tagged ‘anti-trust’

An Historical Primer to the Largest Anti-Trust Settlement in History and the Changes That Will Affect Credit Card Companies

Friday, October 19th, 2012

In 2011, VISA and MasterCard accounted for more than 80% of United States credit and debit purchases. Despite the frequency with which customers use credit cards as a method of payment, certain policies implemented by credit card companies have made vendors reluctant to accept this form of payment. Traditionally, credit card companies have prohibited vendors from surcharging customers who use their cards. This places the burden on vendors to absorb interchange or “swipe fees.” Interchange fees, which are between 1% and 3% of the overall purchase, are incurred every time a vendor processes a credit card transaction, which amounts annually to roughly $40 billion to VISA to MasterCard.