Credit Card Fee Whack-a-Mole
January 1st, 2010
U.S. Looks to Australia on Curbing Credit Card Fees: This is an example of where I think regulation does not work.
[…] as Congress debates how to rein in credit and debit card companies in the United States, Australia’s experience is being pointed to as an example of just how tricky that can be: for one thing, if regulators limit one fee or rate, banks are likely to find another way to keep revenue flowing.
Credit card companies are going to get their money, there’s just no way around it. End one fee, and two others will pop up to take its place. You can play whack-a-mole all you want, but the only way to avoid credit card fees is to not use one, or use a debit card instead.