Letter of the Day (Dec. 20): Credit card swipe fees

  • Updated: December 19, 2013 - 6:15 PM

The 2 percent rate is reasonable for what credit cards do.


Photo: Elaine Thompson • Associated Press,

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The $7.25 billion settlement over the alleged collusion on credit-card charges by Visa and MasterCard really amounts to saying 2 percent was too high but 1.99 percent would have been OK (“Swipe fee battle isn’t over yet,” Dec. 17). The settlement value only proves a wasted effort awarding lawyers $570M, while leaving retailers unsatisfied. Visa and MasterCard stocks are selling at a premium.

Actually, the 2 percent rate is quite reasonable for all the benefits credit cards offer. The card companies advertise to compete for customers, guarantee payments to retailers, and provide convenience and organized record keeping for consumers.

Courts should spend time focusing on the real problem of offering financially unsound credit, which leads to high late fees and interest charges that guarantee financial ruin.


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