Inflated Pricing for All Customers

Inflated Pricing for All Customers - prices to cover the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Inflated pricing for all consumersMerchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.[12][13] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States).[14] The result is that merchants may charge all customers (including those who do not use credit cards) higher
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: prices to cover the fees on credit card transactions.[13] In the United States in 2008 credit card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.[13]...
View Full Document

This note was uploaded on 02/29/2012 for the course ECON 4223 taught by Professor Johnp.willen during the Spring '12 term at UCLA.

Ask a homework question - tutors are online