GAOreport_creditcardfees - November 2009 CREDIT CARDS...

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What GAO Found United States Government Accountability Office Why GAO Did This Study H ighlights Accountability Integrity Reliability November 2009 CREDIT CARDS Ri s in g Interchan g e Fee s Have Increa s ed Co s t s for Merchant s , but Option s for Reducin g Fee s Po s e Challen g e s Highlights of GAO 10 45 - - , a report to congressional addressees When a consumer uses a credit card to make a purchase, the merchant does not receive the full purchase amount because a certain portion of the sale is deducted to compensate the merchant’s bank, the bank that issued the card, and the card network that processes the transaction. The level and growth of these rates have become increasingly controversial. The 2009 Credit Card Accountability, Responsibility, and Disclosure Act directed GAO to review (1) how the fees merchants pay have changed over time and the factors affecting the competitiveness of the credit card market, (2) how credit card competition has affected consumers, (3) the benefits and costs to merchants of accepting cards and their ability to negotiate those costs, and (4) the potential impact of various options intended to lower merchant costs.
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This note was uploaded on 01/18/2012 for the course PADP 8670 taught by Professor Staff during the Fall '10 term at University of Georgia Athens.

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