The U.S. Senate once again seems poised to attempt to impose a cap on credit card interchange fees by re-introducing the Credit Card Competition Act (CCCA). Legislatures in numerous other states have also put forth rate cap legislation. Supporters of these caps as well as other mandates in this realm have an overly simple view of our nation’s complex payment system, and many perceive--incorrectly--credit cards as being mere middlemen that deliver nothing of value. If that is true, they reason, then taking steps to reduce their revenue will save customers money.
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