SmallBusinessNewz

A hidden credit card cost that affects both merchants and consumers is coming under the Senate's scrutiny; "interchange fees," as they're known, may become subject to negotiation.

The National Retail Federation is happy about this development, and in a press release, explained, "Visa and MasterCard banks charge merchants every time a credit card or signature debit card is used to pay for a transaction.  Visa and MasterCard effectively force merchants to pass the fees on to consumers by requiring them to be included in the advertised price of items and making cash discounts difficult."

And that's sneaky enough.  "But interchange is largely unknown to most consumers because Visa and MasterCard keep merchants from disclosing it on receipts and don't disclose the fee on monthly statements."

So, if certain antitrust legislation is passed, Visa and MasterCard will have to discuss the fees with merchants, and when agreements can't be reached, a three-judge panel will be available.

This move will hopefully result in better margins for businesses and lower prices for consumers.  The bill isn't guaranteed to become law, of course, and these matters tend to move slowly, but the Credit Card Fair Fee Act of 2008 will be worth watching.