I think at the consumer level, fees are too high. I’m not as convinced at the merchant level, even though I sell a relatively small-ticket item, as you can see.

I believe that MC, Visa, DC and Amex DO compete, and that if there was ever any doubt in that area, PayPal should have removed. I can be persuaded otherwise, of course.

I also think the merchants who don’t like the fees should serious consider setting up their own network, or start working very hard with someone like GE Capital, or maybe Wal-Mart, to establish a merchant card network.

I also think everyone underestimates the comparative PITA and exposure involved in handling cash and checks.

Speaking of shameless plugs, I’m working with UnfairCreditCardFees.com, sponsored by the Merchants Payments Coalition on the issue of interchange fees. I.e. they’re absurdly, artifically high and appear to be that way because of collusion. It’s been mentioned in the hearings but hasn’t been front and center — probably because the fee is directly charged to merchants, and only to consumers indirectly.

One thing we’d like: more transparency. Another thing: allowing for a cash discount or credit surcharge.