In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review May 1, 2008 / 26 Nissan 5768

Leave the ‘plastic’ alone

By Jeff Jacoby

Jeff Jacoby
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http://www.JewishWorldReview.com | There was a time not so long ago when merchants were never asked whether they took "plastic." That was because credit cards used to be made of metal. They also used to be much less common than they are now. As recently as 1970 only about 16 percent of US households used credit cards, and only about 800,000 retail establishments accepted them.

One of those establishments was Mark's Interior Furnishings of Willoughby, Ohio, a store owned by my parents that sold furniture, gifts, and greeting cards.

For several summers I worked at Mark's, helping customers, running errands, and ringing up sales, which were usually paid in cash or by check. Credit-card payments were accepted, but the procedure was tedious. First, the customer's account number had to be checked against the latest bulletin of stolen-card numbers mailed by the credit-card companies. For purchases above a certain amount, the company had to be called for authorization. If the charge was authorized, a confirmation number was provided, which had to be recorded; the card was then run through the manual imprinter (ka-CHUNK), and the charge slip filled out and presented for the customer's signature. Finally the slip's three copies had to be separated, with one carefully saved for eventual deposit in the bank.

A generation later, credit-card transactions have become all but effortless, requiring only a swipe and a signature - increasingly not even the signature. With that convenience has come ubiquity: Today, 73 percent of American households have credit and debit cards, which they use to buy more than $2.4 trillion in goods and services annually at well over 7 million US locations. Since 2003, purchases with "plastic" have outnumbered those with cash or check.

Like many things that are popular and useful, credit cards have their drawbacks. But it would be hard to think of a more unqualified example of a free-market success, one that daily proves its value anew to the millions of consumers and merchants who willingly use cards for payment. So naturally some members of Congress think they need to get in on the act and "fix" the system that has allowed the credit-card industry to thrive.

At issue are "interchange fees," the 2 percent or so of each credit-card transaction that is kept by the bank that issued the card. Interchange fees underwrite the technology and other costs involved in moving funds between and among merchants, customers, banks, and the credit-card associations - primarily Visa and MasterCard - that make such transactions possible.

As card transactions have grown more popular, interchange fees have skyrocketed. They now amount to $35 billion a year, and some retailers want the government to compel Visa and MasterCard to lower them. Legislation sponsored by US Representatives John Conyers, Democrat of Michigan, and Chris Cannon, Republican of Utah, would require the credit-card associations to enter into formal negotiations with retailers; if agreement weren't reached, it would authorize a three-judge panel to unilaterally impose interchange fees.

And why would retailers, who surely wouldn't want government bureaucrats telling them what to charge for coats or computers or Cracker Jack, want Visa and MasterCard to be told what to charge for credit-card services? Because, they claim, the card networks have so much power that they are immune to the market pressures that would be driving interchange fees down in a truly competitive market.

But Visa and MasterCard are hardly monopolies, and merchants are not without other options. No one is forced to accept Visa and MasterCard; retailers are free to take only American Express or Discover, which operate on a different model and don't charge interchange fees. Online vendors have even more choices, such as PayPal or Google Checkout. And, of course, there are the old standbys: cash and checks.

Nor is it true that Visa and MasterCard are impervious to market pressure. The fast-food industry long resisted accepting credit cards, both because they were seen as too time-consuming and because of high fees. "In response," The Wall Street Journal reported in 2004, "the card industry lowered the fees they charge quick-service restaurants and waived the signature requirement."

Credit cards have been a boon for retailers, who know that consumers buy more when they're paying with plastic. Neither they nor their customers will be better off with Big Brother dictating interchange fees. The flourishing credit-card industry manifestly ain't broke. Congress doesn't need to fix it.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

Jeff Jacoby is a Boston Globe columnist. Comment by clicking here.

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