Interchange Fees Step Into the Spotlight
October 19th 2009 21:12
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From: The Wall Street Journal
BY ROBIN SIDEL
After buckling to pressure on overdraft fees, the banking industry is trying to fend off an attack on an even bigger cash cow.
U.S. banks raked in $45.3 billion last year from credit- and debit-card fees charged to merchants. About 75% of that comes from interchange fees set by Visa Inc. and MasterCard Inc.
Overall merchant fees, including other revenue collected by banks and processing middlemen, are up 78% from $25.5 billion in 2003, according to the Nilson Report, a Carpinteria, Calif., newsletter that tracks the payments industry.
In comparison, U.S. banks took in $39.5 billion in revenue last year
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