Credit Card Advertisement in the Washington Post today

[HeardOnTheHill]

Having never been a big fan of the credit card industry, an ad in the Washington Post caught my eye today. The ad, sponsored by the Merchants Payment Coalition, asks, "Ever wonder who pays for all that credit card junk mail?" The answer? According to the ad, "You do. It comes from your credit card interchange fees." And in case you're like most Americans and are asking yourself, "What is this interchange fee?", the ad answers that question as well. It states:

"Even when you consider all the other fees credit card issuers charge, interchange is probably the worst—and that’s saying something. For example:

• MasterCard and Visa don’t want you to know about credit card interchange fees — these fees are set in secret and each of them makes it practically impossible to tell you what interchange fees cost.
  
  
• Last year, Americans paid over $36 billion in interchange fees, about twice what credit card issuers collected in late charges.
  
  
• Interchange fees are reflected in the price of nearly everything you buy—in fact, as much as $2 of every $100 you spend goes to card issuers—no wonder interchange has risen a staggering 117% since 2001.
  
  
• According to a recent study, only 13% of interchange fees actually go to paying for processing card transactions—the rest goes to things like advertising and all that junk mail you get.

The ad goes on to say that "the House Judiciary Antitrust Task Force has scheduled a hearing concerning credit card interchange fees." I checked and the hearing is set for Thursday at 2pm EST and is being headed by Congressman Conyers. You can watch the hearing live via webcam here. I for one am hoping that Rep. Conyers can shed some light on an issue that has been overlooked for too long and persuade the credit card companies to provide increased disclosure regarding fees and their uses. As the ad states, "You have a right to know what your credit cards are costing you. And when the credit card companies are forced to explain their fees, policies, and practices in public—you win."

[Yael]

1. MC/Visa start at 4.4 and

Amex at 6. Why we are still cash and carry. No sense inflating our rates for the convenience.

[HeardOnTheHill]

2. The website has lots of good information

Yael, it sounds like you've had it with card companies as well, but if anyone else is interested, the Merchants Payment Coalition's website is www.unfaircreditcardfess.com.

It has lots of information about interchange (as well as other predatory lending practices) and a section that allows you to contact your representatives.

[HeardOnTheHill]

3. Sorry!

The proper spelling would be www.unfaircreditcardfees.com.