Interchange Fees
topic on 2 shows · 3 statements across 2 episodes
3 statements about Interchange Fees, every show
Rampell: Credit card network moats are reinforced by high consumer rewards
“Well, the interesting thing there is that it's kind of a double moat that protects them, because not only do they have a network effect, but they also have this bizarre incentive where if a 2.5% fee is being charged to the merchant, well, the consumer is being…”
Rampell: Capping Australian interchange fees transferred wealth to merchants, not consumers
“And actually, you know, in Australia, where interchange went down dramatically, it's like 50 basis points. Rewards went away. You didn't get your miles anymore. And then it was a giant transfer of wealth from the banks to the merchants, but none of that went b…”