INSIDER'S ACCOUNT: "[N]etworks with market power can keep increasing their rates for merchants," Discover President and COO Roger Hochschild testified at the Amex trial. "In essence [it's] taking the merchant's money, and using it against them."

'Vicious Circle' in Credit Card Fees Hurts Merchants: Discover Exec

Discover President Roger Hochschild, testifying at a government antitrust trial of American Express in federal court in Brooklyn, N.Y., said his company tried to offer low interchange rates in the late 1990s and then gave up because bigger, higher-cost rivals had too much market power.

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