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The companies say they need the increases to cover the costs of fraud.
Since European credit-card companies are responsible for paying most of the costs of fraud, they have a significant incentive to reduce it.
The economic friction imposed by card transactions (plus the associated costs of fraud and fraud-prevention) mean that the sheer scale of the internet cannot yet be harnessed.
The banks and the card networks have defended themselves for years, saying that the fees, in part, help to cover the costs of fraud.
Because of the intangible costs of fraud, the expense of investigating such conduct, and the need to deter others who might be similarly tempted ordinarily double assessment, in lieu of damages, and a significant civil penalty should be imposed.
The Fed proposed that it re-evaluate the fee cap every two years and asked for more time to consider whether it should be increased to reflect the costs of fraud protection.
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The second has the appeal of reducing the costs of fraud-on-the-market litigations and doing so in a way that hinders cases with relatively weaker evidence of price impact more than ones with stronger such evidence.
The estimated cost of fraud from organised gangs has reached nearly £9bn a year.
The compromise announced Monday also would direct the Fed to consider the cost of fraud.
The cost of fraud committed on UK cards used abroad dropped by 45% over the same period, while fraud in the UK fell by 9%.
And a recent report from the accounting firm Grant Thornton estimated that, by 2025, the cost of fraud in the industry worldwide will have reached $1.5 trillion.
More suggestions(19)
estimates of fraud
causes of fraud
costs of evasion
costs of manipulation
costs of dishonesty
charges of fraud
consequences of fraud
costs of abuse
costs of counterfeiting
costs of cheating
costs of health
costs of privatization
costs of entry
costs of production
costs of construction
costs of borrowing
costs of freelancing
costs of course
costs of electricity
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