Yeah, I know what you mean. I felt the same way when this story first broke in April, but take a close look at your chargebacks, are you anywhere near those percentage levels?
From research I did a while ago, the card associations are really targetting the card processors that use their merchant account to accept transactions on behalf of other vendors. They want a method to shut down the bad ones. I wouldn't worry just yet, the good ones are still around, the bad ones have closed their doors, but it bears watching just the same.
If I remember correctly, the player with the most issues was AMEX. One of the issues was the no compete agreement Visa and MC had. Also, I seem to recall one of them having the smart card technology and not using it because the other one wasn't capable yet. The report I heard tried to make them sound as worthy of an anti-trust case as Microsoft's.
>>Isn't Sears tied to the Discover card? That thickens the plot a bit.<<
Come to think of it, Walmart, a.k.a. Sam's Wholesale is also tied to Discover/Novus. Amex had some kind of case going. I understand the government is looking into an antitrust suit like the Microsoft suit against VS/MC. Saw that on the tv set. It is getting interesting.
Sears is no longer involved with the Discover Card. When Sears sold Dean Witter (or spun them off - I can't remember),Dean Witter took Discover Card with them. Morgan Stanley now owns Dean Witter and hence Discover Card.