Are Card Issuers planning for Interchange Fee Revenue Loss?

I’ve said before that MasterCard’s final appeal of the EC’s December 2007 negative decision promises to be a major crossroads for the Card Industry and may have far reaching consequences.

Ok, so it seems to take forever for these cases to be heard, but the clock is ticking and if the worst should happen, well, how are you going to make up a shortfall on interchange fee revenues?  Trust me, local country arrangements will quickly fall under the regulatory microscope and it is doubtful the legal process will be as drawn out as it has been at the European level. There could be an awful lot of Wonga at stake!

Strangely, I carried out just such a review about 10 years ago following Cruickshank’s report in the UK and the ensuing OFT investigation of MasterCard’s intra UK Interchange Fee arrangements.  Do you know I came up with about 34 new pricing options, some plain ridiculous I admit (I was thinking so far outside the box I couldn't see it) but a lot that merited further consideration.

The point is, whether you’re an organisation that is prepared to take the lead on introducing new, or revised, cardholder charges, or one that is more inclined to follow the market, you should be starting to consider how your organisation would react if, indeed, the worst does happen.  And then, would you review card product pricing only ....... or perhaps, a more holistic review of payment pricing might be the order of the day!