Credit-card companies modify interchange fees

Chicago Tribune

CHICAGO — Consumers making purchases with plastic could inadvertently be driving up prices for goods and services as the cost of accepting that form of payment gets more expensive.

MasterCard and Visa on Friday modified some interchange fees, which are assessed when consumers use a credit or debit card to pay for purchases.

Interchange fees don't come out of consumer's pockets. The bank for the business that accepts payment made via credit or debit pays the bank that issued the consumer's card.

MasterCard officials said they are bumping up their rates in part to stay competitive. Visa USA said only certain interchange fee will increase, while others may decline.

But retailers are worried that higher interchange fees could lead to smaller profit margins and higher prices.