Released on = March 8, 2007, 2:06 am

Press Release Author = Shushmul Maheshwari

Industry = Industrial

Press Release Summary = Interchange fees charged by the credit card companies is
raising eyebrows of traders and consumer groups. Now they're joining forces with
politicians to take on the credit card industry.

Press Release Body = MasterCard and Visa made $30.7 Billion in 2005 by charging
traders a percentage of each transaction by credit card. According to the estimates
by the National Retail Federation (NRF), these earnings will spike to $40 Billion by
2006. The retail industry is now joining hands with politicians to talk about
restrictions on the credit card companies.

The fee that varies with each transaction and is different for different trader is
taking the operating costs for many small players up. For example, as per the NRF,
gas stations pay 7-9 cents as fees on each gallon of fuel sold.

The Senior Vice President, Government Relations, NRF, Steve Pfister, reported that
US charges the highest interchange fee in the world and this would remain the top
issue of the Federation to deal with the 110th Congress.

The Sun News reported Pfister saying that the NRF has demanded enhanced transparency
on the fees charged by the credit card companies in future.

NRF is not alone in this movement. A lot more consumer groups are stressing the need
of same kind of amendatory action against credit card companies. The Merchants
Payment Coalition (MPC) is also supporting this movement and is suggesting taking a
"deeper look" into the matter. According to MPC, the interchange fees cost the
consumers around $30 Billion annually. This amount, they state, is almost double the
amount charged by the credit card industry as late fees.

According to a Research Analyst at RNCOS who has recently researched a report on
"U.S. Convenience Stores: A Market Analysis", fees of credit card cost a convenience
store (c-store) about 2.5-3% of the transaction made up of many components, like
PIN-based debit transaction. A credit transaction can cost convenience stores more
than other channels and it's a matter of matter of concern for c-stores.

The RNCOS report also discusses the issues and facts critical to business success,
like:

- Market size of the US retail store industry
- State-wise growth of convenience stores
- Growth driving factors
- Technologies that can help convenience store markets to improve their operations
- Role of these technologies in increasing the operational efficiency
- Major players, and their presence and strategies

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/CP11.htm
Current Industry News: http://www.rncos.com/blog


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com