How can a new company compete against visa and MasterCard?

Assuming that we can limit consideration of any such competition to the operation of a competing network for consumer to merchant payments, the simple and most honest answer could only be: "With great difficulty". read more

Despite these seemingly impenetrable fortresses of capability, balance sheet and volume, however, there are established and a few relatively new companies that are already offering serious competition to Visa and MasterCard and there are threats on the horizon in the form of start up companies with good ideas, strong backing or both. read more

When a credit card holder pays his or her bill, the financial institution receives the payment—not the credit card company. Visa, MasterCard and other credit card companies, such as American Express Co. and Discover Financial Services , make money by charging merchants and businesses a fee for accepting their card as a method of payment. read more

According to the Electronic Payments Coalition, a group of banks, credit unions and payment card networks, any credit card surcharges will be limited to the amount of money the merchant pays to the credit card company. So if a retailer is charged $.35/swipe by Visa, the most it can pass on to you is $.35. read more