Business Plan

Dick Durbin, a U.S. Senator, the fight against unfair practices of credit with its introduction of new legislation on the management fees that companies credit cards such as Visa and MasterCard for retailers throughout the process of credit card transactions.

The bill is expected that the charges or reduce them by more equitable allows companies to negotiate with companies. At present, the exchange fee price is not negotiable, business promotion  ‘annual turnover of several billion dollars and drainage retailers and customers  ‘door.

Under the new legislation with the title of credit card Fair Fee Act of 2008, Congress is determined to seek and obtain full information on how companies credit-exchange rate fees, methods and data they use to do.

Credit companies insist that management fees are paid and the need to cover the cost of processing a credit card payment. But it is clearly a contradiction. With the rapid development of high technology for credit card transactions, for example, Radio Frequency ID Technology Services not to hit any stolen bank cards and PIN card, treatment and admission fees should be gradually reduced. Indeed, it is the opposite.

What’s more, despite the constant increase in taxes, a recent study reveals that only 13% of the amount collected is intended to cover the cost of approving the transaction, to ensure data security and protection against fraud. The largest portion of management fees that are allowed to cover the premiums abundant and businesses Program Files  ‘other expenses in connection with the benefit of campaigns.

This fact leads us to believe that the new law will affect consumers  ‘ability to gather rewarded by the card. In 2007, Visa and Master Card together a heritage of $ 30 billion in transactions for credit cards and fees  ’s very likely that at least half of them had been invested in miles , Points of gas and rewarded.

Regardless of the impact on the level of awards, the new legislation came into force Congress and a letter has already been sent to Visa and wanted the Tax recruitment methodology.