New York Times: Visa and Mastercard Agree to Cap Their Swipe Fees in Settlement
But not all merchants, particularly smaller ones, are as optimistic about the proposed changes. Temporary fee reductions fall short of what’s needed and underscore why Congress needs to pass legislation to promote a more competitive marketplace, said the Merchants Payments Coalition, a trade group representing retailers, supermarkets, convenience stores, gas stations and online merchants. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition,” said Christopher Jones, a member of the coalition’s executive committee and senior vice president of government relations at the National Grocers Association. “Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again.”
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CSP Daily News: Visa, Mastercard Agree to $30 Billion Settlement Over Credit and Debit Card Swipe Fees
The settlement “would provide very small relief and does not end the need for Congress to pass legislation,” the Merchants Payments Coalition (MPC) said in a statement following the announced agreement. “This settlement is a bad deal for merchants,” MPC Executive Committee member and National Grocers Association Senior Vice President of Government Relations and Counsel Christopher Jones said. “A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation. The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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Mass Market Retailers: Merchants group criticizes proposed ‘swipe’ fee settlement
“A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation,” Christopher Jones, an MPC executive committee member and senior vice president of government relations at the National Grocers Association, said in a statement. Added Jones, “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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Fox Business: Swipe fees cost consumers an estimated $578 million on Valentine’s Day
"Valentine’s Day is one of the busiest days of the year for restaurants, but that special meal out is going to cost a little more for the restaurant and the customer this year, thanks to higher swipe fees," Brennan Duckett, a Merchant Payments Coalition Executive Committee member, said. "Whether it’s eating out, buying flowers, or choosing an engagement ring, soaring swipe fees drive up the price of everything U.S. consumers buy and impact what couples can afford."
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NACS Daily: Visa, Mastercard Swipe Fees Hit Record $100 Billion in 2023
According to the MPC, total swipe fees, including from debit cards, topped $172 billion, compared to $160 billion in 2022. Of that figure, more than $132 billion in swipe fees were from debit and credit cards bearing the Visa or Mastercard logos. “Once again, Main Street merchants and consumers were hit with a new record for swipe fees in 2023,” said Christine Pollack, vice president of government relations for FMI—The Food Industry Association. “Last year, Visa and Mastercard fixed the banks’ prices to the tune of more than $100 billion in credit card swipe fees. That is an awful toll for Main Street businesses and their customers to bear.”
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Convenience Store News: Visa & Mastercard Swipe Fees Hit $100B in 2023
American merchants were charged $7.5 billion more for credit cards with Visa and Mastercard logos in 2023 than they were in 2022, with fees totaling $100.77 billion by year's end. This was the first time in history that Visa and Mastercard credit card swipe fees surpassed the $100 billion mark, according to the Merchants Payments Coalition.
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WJAR-TV: Proponents of 'swipe fee' bill argue it won't kill credit card rewards
NBC10 recently asked Doug Kantor, a member of the Merchants Payments Coalition, how credit card companies would make up for the loss in revenue if the Credit Card Competition Act passes. “So they ‘make this up’ is an interesting fallacy that they like to put out there,” Kantor said. “It's as if their current level of profits were written on a stone tablet and they have a God-given right to it, no matter what happens.” He continued, “If you look at it, the banking industry in the United States that issues these credit cards and makes the swipe fees, has the largest profit margin of any industry in the United States - it's 30%.” NBC10 also asked Kantor about claims rewards would disappear. “Economic experts have looked at this. They've studied what's happened around the world, and they found that even if these fees are dramatically cut overnight, rewards don't get reduced one bit,” Kantor argued.
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Payments Dive: Biden, Republicans clash over card fees
“These fees, which are price-fixed by Visa and Mastercard in a way that insulates the fees from normal marketplace competition, impose enormous costs upon American merchants and inflate retail prices paid by American consumers,” said the letter from the Merchants Payments Coalition; Americans for Financial Reform; and the National Association of Convenience Stores, among others.
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Gifts and Decorative Accessories: Scathing Email to Capitol Hill Calls out JPMorgan and Banking Industry for ‘Complete Fabrications’
On the heels of JPMorgan Chase’s move to add a competing processing network to Visa and Mastercard credit cards it issues in France, the Merchants Payments Coalition responded, saying it shows that the the banking industry’s objections to the Credit Card Competition Act “are complete fabrications.” “JPMorgan and its giant banking friends in the U.S. say that offering a network alternative in America will make the sky fall, end rewards, hurt security, and cause the sun to implode and turn into a black hole,” MPC said. “Is it really true … that they actually know everything they are saying here is a fabrication, and they have no problem adding network competitors overseas?”
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Convenience Store News: Industry Speaks Out Against Attempt to Stall Changes to Debit Card Swipe Fees
Now, more than 60 national and state organizations representing consumers and merchants are speaking out against any attempts to put the proposed changes on hold, according to the Merchants Payment Coalition. The Merchants Payments Coalition represents retailers, supermarkets, convenience stores, gasoline stations, online merchants and others fighting for a more competitive and transparent card system that is fair to consumers and merchants. "Every day of further delay in the Fed's consideration of its proposed rule means another day in which large card-issuing banks are deducting significantly more money out of debit transactions than is reasonable, proportional, or allowable under the law Congress passed," the groups said. "That is why financial industry trade associations are seeking to delay the Fed as long as possible from taking action to update its 2011 regulation — delay preserves what for them is an enormously lucrative status quo."
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