Interchange fees, charged when the transaction stretches between banks and other service providers like Visa or MasterCard, is a fee levied to complete a transaction. At present, there is no regulatory authority setting the fees and it is being alleged that certain banks along with MasterCard and Visa are colluding to set these rates at unreasonable levels.
Reportedly, the interchange fees being charged in the US is one of the highest in the world, in spite of the fact that the electronic payments system here are one of the most efficient.
High interchange fees directly impact bottom-lines of merchants and retailers and according to them, the practise is against US Antitrust laws.
Click here to read what action merchants are taking to address this situation.
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