|Happy All Saints Eve|
Congress passed a law to “protect consumers” by banning credit card companies and banks from charging merchants a fee for each transaction.
Banks complied, and merchants pocketed the difference, saving the consumer nothing.
Next, Bank of America did the honest thing and announced a flat $5 per month fee for cardholders to make up for the revenue congress took from them.
Result: Consumer is $5 per month poorer and store owners are marginally richer. Thank you Dick Durban and Congress!
Now comes Chase, Citigroup and others saying they will not charge cardholders a fee, giving consumers a clear choice. Unlike government action, the free marketplace gives consumers more choices, as merchants compete for our dollars.
Thanks to the free market, a customer can now choose to do business with a bank that explicitly charges her the fee, or she can go with the bank that hides if from her.
Daily News Corner