Furniture Today: Merchant Group Continues Urging Credit Card Competition Act
The Merchants Payments Coalition told Congress today that only this legislative proposal that would bar China’s credit card network, China UnionPay, from the U.S. payments market. “The two dominant payment networks in the United States – Visa and Mastercard – have welcomed China UnionPay into standard-setting for U.S. payments,” MPC said in a letter to all members of the House and Senate. “This is dangerous and wrong.”
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Politico Influence: Playing the China Card
In a letter to Scott and Senate Banking Chair Sherrod Brown (D-Ohio) this morning, the Merchants Payments Coalition sought to link Visa and Mastercard with the company, noting they allowed UnionPay to join the security standards group EMVCo a decade ago. “Today, there is no law preventing Visa, Mastercard or any of the banks for which Visa and Mastercard set credit card prices and rules from working with China UnionPay,” the coalition wrote. “There is, however, one piece of legislation that would create a legal restriction prohibiting China UnionPay from being enabled on any U.S. credit card — the Credit Card Competition Act.”
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Hardware Retailing: Federal Reserve Proposes Lower Cap on Debit Card Swipe Fees
“Visa and Mastercard’s profit margins are more than 20 times what merchants make, and their megaprofits are still rising,” says MPC executive committee member and National Association of Convenience Stores general counsel Doug Kantor. “Businesses in competitive markets just don’t make those profit margins. With no competition or fairness, this is a broken market that only Congress can fix. It’s time to pass the Credit Card Competition Act so credit card companies will have to compete the same as small businesses.”
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Progressive Grocer: Grocery Industry Supports Fed's Bid to Reduce Debit Interchange Rate
“Banks have been charging more than five times their costs for debit card transactions, and the Fed is finally saying that’s too much,” said MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor. “This is a step in the right direction toward the real, competitive market that Congress wanted to see, but still leaves the fees too high. Merchants and the consumers who ultimately pay these fees have been overcharged for far too long, so we need to get this right.”
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Gifts and Decorative Accessories: Do 'Soaring Profits' for Visa and Mastercard Prove We Need Better Regulation? The Merchants Payments Coalition Says the Credit Card Market is Broken
According to the Merchants Payments Coalition, soaring profits reported by Visa and Mastercard this week are further evidence that the credit card market is broken and not competitive. The retail group released a statement criticizing the companies and their margins, as well as calling for reform.
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Chain Drug Review: Retailers Say Proposed Swipe Fee Cut Is Not Enough
A retail group said Wednesday that a proposed reduction in the “swipe” fees that merchants pay banks to process debit card transactions is welcome but doesn’t go far enough. The Merchants Payments Coalition responded to the Federal Reserve’s proposal to lower the basic amount banks are allowed to charge from a maximum of 21 cents to 14.4 cents per transaction.
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American Banker: Mastercard CEO Slams Proposals to Alter Swipe Fees
The bill's supporters say it would generate competition that will lower card fees. In an American Banker op-ed, Doug Kantor, general counsel of the National Association of Convenience Stores, said: "The answer [to high fees] is to pass legislation that fixes the broken credit card market by requiring big banks and giant card networks to compete the same way small businesses do every day."
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USA Today: Americans Relying Less on Cash, More on Credit Cards May Pay More Fees, Here's Why
The Merchants Payments Coalition estimates swipe fees cost the average family over $1,000 in higher prices in 2022, up from $900 in 2021.
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Payments Dive: Fed Proposes Reduction in Debit Fee Cap
“Banks have been charging more than five times their costs for debit card transactions and the Fed is finally saying that’s too much,” National Association of Convenience Stores General Counsel Doug Kantor said in a Merchant Payments Coalition press release. “This is a step in the right direction toward the real, competitive market that Congress wanted to see, but still leaves the fees too high. Merchants and the consumers who ultimately pay these fees have been overcharged for far too long, so we need to get this right.”
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Chestertown Spy: Grocers Compete, Why Can't Credit Card Companies?
Credit and debit card swipe fees have more than doubled over the past decade and skyrocketed $22 billion last year to a record $160.7 billion, including $1.7 billion in Maryland. They are most merchants’ highest operating cost after labor and drive up prices by more than $1,000 a year for the average family, according to the Merchants Payments Coalition.
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