Visa Doesn’t Like Merchants

Corey,

The rates I now pay to VISA, MC, AmExp are now 100-200% higher then years ago. You made a profit years ago, so what happen?

The proposed legislation is there because of excessive rates and unmoral business practices. VISA needs to pull their head out of the sand and take a real good look at what they are doing.

I can assure you that if another financial instrument comes along, I will drop VISA, MC, and AmExp like a hot potato. I and many other merchants are continuously looking for a way to get rid of you guys. Until that happens, I will write my congressman/women and ask that they force you to conduct your business in a moral manner.

I read an article (actually the last FAQ) on Roadtrucker.com, http://www.roadtrucker.com/faq.htm, that opened my eyes to the unscrupulous and unethical loan-sharking practices of the credit card industry. Visa, Master Card and the like are the new mafia and most of us are kept in the dark about the true impact of these criminals.

Corey;

You do make some excellent points, but I think you're missing something. In the case of your company, you will make your profit because you are good at what you do and you offer a good value to your customers. If you don't, they'll go elsewhere and you'll be out of business.

This just isn't the case with the credit card companies. As merchants, we have to accept them, not because Visa and MC are a great value, but because if we don't, our customers will go elsewhere. Cardholders us them, not because they are a good value (how can they be at 29%) but because, other than cash, which they never seem to have enough of, there's no real choice - especially when you consider speed and convenience.

The interest rates charged to cardholders is literally illegal in almost every state. That's why all card companies are registered in Delaware and one or two others. The terms they issue in their contracts would be, and probably have been, laughed at and/or ruled illegal. They are, for all intents and purposes, a monopoly, but since there's a few of them, they aren't considered as such.

They have, in the past, through what could certainly be considered great marketing and good business sense, gotten themselves to the level where nobody in their right mind would use them if there were an alternative. And that's why they need to be regulated.

Company profits should not be controlled by government. That is not the governments place. If a company is making a lot of profit, it is reasonable to assume they are providing good products or services. If one feels a company is making too much profit and that is something one would like to change then one should not support that company. I realize the world takes visa at this point but many changes in our history have been done with great work and were not easy. Stop the insanity and stop trying to control compay profits with legislation. How would you feel if you had grown a business that was making "too much money" and was under the gun to be controlled by the government? I for one hope to build a company that others envy and thus likely feel the company makes "too much money" and I certainly don't want to work towards that end just to have the rewards of my efforts capped by congress.

I wonder what the backlash would be if consumers realized just how much it is costing them. After all, we as merchants simply pass on those costs to our customers.

Maybe merchants should band together to work to educate the public on how this all affects them. Maybe then there could be enough pressure on the politicians to do something. Ooops - I forgot this is America.

Well, I can dream can't I?