June 10, 2012

Since we use plastic on every visit to McDonald's it shouldn't be a surprise that the percent of 
business going to credit cards has gotten so high. While accepting credit cards is a modern necessity McDonald's Operators should remember the origins of the credit card fees they pay.

Most McDonald's watchers doubted Jack Greenberg would finish 2002 as the company's Chairman and CEO, apparently including Greenberg. During that year he and others in the treasury department began negotiations with First Data Corporation to handle McDonald's credit card program. At the time First Data was a publicly held company.

Most McDonald's franchisees who shopped around were able to beat the fees charged by First Data but were forced into the corporate approved program with zero options.

Jack Greenberg "retired" from McDonald's in December of 2002 and in 2003 he was named to the board of directors of First Data Corp.

During the time Greenberg served on the board First Data owned the Western Union company. In 2006 Western Union was spun off as a separate public company and Greenberg left the First Data board to be installed as chairman of the new Western Union (WU).

And that's the history of your credit card fees

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