In Broken Market, 'Swipe' Fees Must Be Regulated

America's small business owners have long endured a broken credit-card and debit-card processing market and its attendant ills. Visa (V), MasterCard (MA), and issuing banks have long charged merchants interchange—or "swipe") fees every time a consumer makes a payment with a credit or debit card. The fees are excessive for merchants of all sizes, but tier pricing disproportionately affect small companies because their transaction volume is lower than that of their large competitors.

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