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The American Empire in a Changing World



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Tuesday, January 10, 2012

Matt Taibbi: Credit Card Firms: "They Don't Just Steal From Cardholders"

read more from rolling stone....


"It's a complex tale, but the gist of it is that the credit-card companies invoked arcane provisions of operating contracts with the merchant, and unilaterally "fined" the restaurant for enormous sums of money without proving any of the charges. Some of that money was actually debited from the merchants' account before they managed to close it.  
When a restaurant opens for business, it signs service contracts with middleman firms that allow them to accept charges from Visa and MasterCards. These middleman firms process the charges on behalf of the issuing cards, and also debit the accounts of merchants for things like debit fees."


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