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Acquiring margins squeezed, profits up - what's the story?

The average interchange rate in the US has increased by 22% in ten years, yet total actual fees charged to merchants, including interchange, have only increased by 11%. Acquirers appear to have swallowed a large portion of the increased interchange by lowering their own transaction fees, presumably in response to merchant pressure. It’s tough being on the front lines. But this is only part of the story. Some acquirers have managed to work their way around the problem. 

See the full blog post here:

http://aneace.blogspot.com/2008/03/acquiring-margins-are-squeezed-yet.html

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