Upstart Credit Card Firm Takes on Visa, MasterCard and the Big Banks
Merchants feeling unfairly robbed by credit card fees -- paying more than $25 billion in card fees to financial institutions each year in order to accept and process credit card payments – may soon have an ally on their side, and a lower-priced alternative.
There’s a new payment system in town, developed by America Online co-founder Steve Case, called GratisCard. GratisCard uses the Internet’s series of tubes to lower transaction fees paid by retailers.
CORNERSTONE SUPPORT, INC.
We are a true full-service compliance solution for state licensing, bonding and resident offices. Put Your Licensing & Renewals in Our Hands.
That it also increases credit access to lower income consumers and consumers with less than great credit is a side benefit.
Gratis is shoving its way into the arena formerly dominated by Visa and MasterCard. Merchants have long complained about the fees charged them to be able to accept and process credit cards. Visa and MasterCard charge, on average, about 2.2 percent per transaction for credit card purchases and 1.75 percent per debit card transaction.
Gratis’s business plan involves sliding in at about 0.5 percent per transaction – a move that could position them to dominate over Visa and MasterCard. Retailers have long disliked what they felt to be price gouging by the Big Two; it’s likely they’ll listen with an eager and willing ear to a company that plans to offer significantly cheaper interchange fees.
Be the First To Comment
(Please read our comments policy first.)
Tell us what topics you're interested in and we'll keep you posted. Enter your email address below.
Topics:
Companies:
Related Resources
News
Analysis
Publications
Research
Products and Services
