Re:Anatomy of a credit card rewards program
by sf_rob on Thursday April 04, 2024 @01:34PM
(#39933502)
Claiming that merchant fees result in higher prices is different from claiming that reducing merchant fees would directly, immediately, or measurably lower prices. Isn't a plausible explanation that companies are hesitant to lower prices for any reason?
Let's consider the opposite scenario, if Visa raises their fees do merchants keep prices where they are? I suspect not.
Re:Anatomy of a credit card rewards program
by abalone on Thursday April 04, 2024 @01:08PM
(#39933141)
Also true for Australia! When they regulated interchange, merchants did not pass the savings on to consumers.[1]
[1] https://laweconcenter.org/resources/the-effects-of-price-con...
Re:Anatomy of a credit card rewards program
by eltondegeneres on Thursday April 04, 2024 @01:45PM
(#39933638)
That think tank is funded[1] by the anti-regulation Charles Koch Institute and the article should be read with that in mind.
[1]: https://www.influencewatch.org/non-profit/international-poli...
Re:Anatomy of a credit card rewards program
by scarface_74 on Thursday April 04, 2024 @03:25PM
(#39934726)
That may be true. But do you in your heart of hearts think that companies are going to pass those savings on to consumers?
Case studies indicate otherwise.
Dodd-Frank Act postulated what you stated, that higher fees result in higher prices for consumers ... and if you lowered the fees for the merchants, merchants would lower their prices (to pass along that savings back to the consumers).
But studies have shown otherwise, and merchants did not lower fees.
https://www.cutimes.com/2015/09/03/durbin-failing-to-lower-m...