Comments on: Congress needs to take a hard look at credit practices http://www.bloggernews.net/14215 High-quality English language analysis and editorial writing on the news. Tue, 02 Dec 2008 23:27:11 +0000 http://wordpress.org/?v=2.3.3 By: Colton http://www.bloggernews.net/14215#comment-1302 Colton Mon, 29 Jan 2007 20:19:38 +0000 http://www.bloggernews.net/14215#comment-1302 Ed, I work with the Merchants Payment Coalition and wanted to clarify that $26.3 billion was the cost of interchange fees to consumers for 2004 and $30 billion for 2005. It is interesting that interchange costs have jumped 700% in the past 10 years even though the cost of credit card transactions has dropped dramatically. In addition, only 13% of the interchange fee goes to covering the cost of the transaction, the rest to credit card marketing, funding rewards, and greater profit. Consumers have the right to know how much credit card interchange fees cost them. Thanks for your interest in this important issue. Ed, I work with the Merchants Payment Coalition and wanted to clarify that $26.3 billion was the cost of interchange fees to consumers for 2004 and $30 billion for 2005. It is interesting that interchange costs have jumped 700% in the past 10 years even though the cost of credit card transactions has dropped dramatically. In addition, only 13% of the interchange fee goes to covering the cost of the transaction, the rest to credit card marketing, funding rewards, and greater profit. Consumers have the right to know how much credit card interchange fees cost them.

Thanks for your interest in this important issue.

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