4 ms·

Is anyone else wondering why Visa and MasterCard aren't being targeted for antitrust? All of this applies to what they do with credit card fees.

bostonvaulter2 6y ago
I'd love to see them be targeted for antitrust. In my opinion credit card fees are far too high...
Cthulhu_ 6y ago
Probably because there is enough competition on the credit card and payment market; do they have a monopoly? Are they driving the competition out of the market?
- SirensOfTitan 6y ago
  Another interpretation here: US regulators have been asleep for decades, and they haven’t taken much of a look at a number of companies abusing their monopoly positions.
  - Cthulhu_ 6y ago
    There's that too, and the US political system ensures that that is kept in place - companies hire lobbyists, lobbyists cozy up to politicians, money is funneled to said politicians' election funds, and politicians are either formerly business leaders, or have a cushy high paying job waiting for them after their term if they play their cards right. I think with all this (and the cases vs FB, Apple, etc), the tech sector didn't manage to pay and influence the politicians enough. Which is quite telling for the US' political systems.
- TheKarateKid 6y ago
  Enough competition? Collectively, those two control 90% of the credit/debit transaction marketshare as of Jan 2020. Almost every move and change is mirrored by the other -- they don't even try to hide the fact that they practically operate in unison. Almost all credit card companies have stipulations that merchants are not allowed to charge less for people paying cash -- forcing cash paying customers to pay the same price as those who cost the merchant a CC fee. This is basically a 3% tax we are all forced to pay on everything we buy.
BigGreenTurtle 6y ago
Because this is a political act rather than one based on principal.
- Andrex 6y ago
  Would you say the same for today's lawsuit from 38 other states and territories as well? https://coag.gov/app/uploads/2020/12/Colorado-et-al.-v.-Google-PUBLIC-REDACTED-Complaint.pdf https://coag.gov/app/uploads/2020/12/Colorado-et-al.-v.-Goog...
curryst 6y ago
In another thread, someone mentioned that the regulatory difficulties of operating a credit card company are so high that no one has started a new one in decades. So theoretically, removing some of the regulatory capture would help unseat Visa and MasterCard. Fwiw, there is also Amex and Discover. They're far smaller players though.

bostonvaulter2 6y ago

I'd love to see them be targeted for antitrust. In my opinion credit card fees are far too high...

Cthulhu_ 6y ago

Probably because there is enough competition on the credit card and payment market; do they have a monopoly? Are they driving the competition out of the market?

SirensOfTitan 6y ago
Another interpretation here: US regulators have been asleep for decades, and they haven’t taken much of a look at a number of companies abusing their monopoly positions.
- Cthulhu_ 6y ago
  There's that too, and the US political system ensures that that is kept in place - companies hire lobbyists, lobbyists cozy up to politicians, money is funneled to said politicians' election funds, and politicians are either formerly business leaders, or have a cushy high paying job waiting for them after their term if they play their cards right. I think with all this (and the cases vs FB, Apple, etc), the tech sector didn't manage to pay and influence the politicians enough. Which is quite telling for the US' political systems.
TheKarateKid 6y ago
Enough competition? Collectively, those two control 90% of the credit/debit transaction marketshare as of Jan 2020. Almost every move and change is mirrored by the other -- they don't even try to hide the fact that they practically operate in unison. Almost all credit card companies have stipulations that merchants are not allowed to charge less for people paying cash -- forcing cash paying customers to pay the same price as those who cost the merchant a CC fee. This is basically a 3% tax we are all forced to pay on everything we buy.

BigGreenTurtle 6y ago

Because this is a political act rather than one based on principal.

Andrex 6y ago
Would you say the same for today's lawsuit from 38 other states and territories as well? https://coag.gov/app/uploads/2020/12/Colorado-et-al.-v.-Google-PUBLIC-REDACTED-Complaint.pdf https://coag.gov/app/uploads/2020/12/Colorado-et-al.-v.-Goog...

curryst 6y ago

In another thread, someone mentioned that the regulatory difficulties of operating a credit card company are so high that no one has started a new one in decades. So theoretically, removing some of the regulatory capture would help unseat Visa and MasterCard. Fwiw, there is also Amex and Discover. They're far smaller players though.