| PayPal Tries to "Duck" Debit -Fee Cap as Federal Regulation Loons...er Looms | |
| (from Bloomberg on 1-19-2011) | |
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 PayPal Inc., the fastest-growing unit at online marketplaceEBay Inc., said the Federal Reserve shouldn’t subject the company to a cap on debit-card transaction fees, a move that could threaten most of its U.S. revenue. The Fed is seeking public comment about whether limits passed by Congress should apply to “non-traditional” payment systems such as PayPal that are vying for part of the $4 trillion U.S. market dominated by Visa Inc. and MasterCard Inc. PayPal’s business would be damaged if it’s regulated like payment-card networks, according to Patricia Hewitt, a director at consulting firm Mercator Advisory Group. >>read more>>
“We will be making the case that PayPal is not a payment- card network,” said Sara Gorman, an Atlanta-based spokeswoman for PayPal, in a telephone interview. “We don’t charge interchange fees. We’re confident that we won’t be regulated.” Look like a duck + Walk like a duck + Quack like a duck = duck? |
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