Gifts and Decorative Accessories: Merchant Groups Fight Against a Delay that ‘Preserves an Enormously Lucrative Status Quo’
The Merchants Payments Coalition cited that under regulations established in 2011, banks that have at least $10 billion in assets and follow rates centrally set by Visa and Mastercard can charge up to 21 cents per debit card transaction plus 1 cent for fraud prevention and 0.05 percent of the transaction amount for fraud loss recovery. Banks can charge any amount they want if they set the fees themselves, but no major banks have done so. Smaller banks are exempt and can charge as much as they like.
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CStore Decisions: How the $35 Billion Capital One/Discover Acquisition Could Affect Retailers
“(The deal) probably doesn’t make much difference at all. It may mean higher debit card fees, but it doesn’t change any of the dynamics on the credit card side with respect to merchants,” said Doug Kantor, general counsel at NACS and a member of the executive committee of the Merchants Payments Coalition. “So, it looks like it’s mostly some downside on debit, but otherwise a relatively unchanged picture.” For the merger to bring swipe fee competition, Kantor said Congress needs to pass the pending Credit Card Competition Act (CCCA), which would give merchants bargaining power with networks.
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Gifts and Decorative Accessories: ‘The Card Industry Is Triple-dipping:’ New Data Shows Record Profits for Banks from Fees, Interest Rates
“The card industry is triple-dipping, making millions of consumers pay three times for their credit cards,” MPC Executive Committee member and National Association of Convenience Stores Senior Vice President of Government Relations Lyle Beckwith said. “The largest banks make consumers pay an annual fee whether they use their card or not, then pay higher prices because of swipe fees every time they make a purchase, then pay huge interest rates on the balance."
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Marketplace Radio: The fees war between retailers and credit card companies is heating up
Merchants argue these percentages are averages of hundreds of different kinds of rates for different cards, merchants and situations, and conceal increasing numbers of high-end credit cards that charge merchants higher rates. “A lot of times what Visa and Mastercard will do,” said Doug Kantor, general counsel for the National Association of Convenience Stores (and MPC Executive Committee member), “is they’ll create new rates, leave the old ones in place, and say, ‘Well, we didn’t increase all these rates in here,’ and they sort of average out all their rates, even though they know the banks are issuing more cards at the higher rate.”
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Southern Jewelry News: Merchants say Capital One/Discover deal shows need for Credit Card Competition Act
“This shows Capital One realizes the Credit Card Competition Act is going to pass and wants to be prepared to compete for merchants’ business once that becomes possible,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “Visa and Mastercard lock banks that issue credit cards into a centrally set scheme of fees and prohibit them from allowing competitors on their cards. No merger can change that bar to competition – only legislation can. If the CCCA is passed, Main Street businesses and their customers get competition regardless of whether the merger goes through. But the merger alone doesn’t get us to that goal.”
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NerdWallet: Could the Credit Card Competition Act Impact Credit Unions?
With assets of over $100 billion, there’s only one major credit union that would be directly impacted by the Credit Card Competition Act. Navy Federal Credit Union has 13 million members — many with ties to the military, including their qualifying relatives — and branches near military installations and overseas. The credit union declined to comment on the potential impact the bill would have on its community. “It only impacts a single credit union,” says Doug Kantor, a member of the Merchants Payments Coalition executive committee and general counsel at the National Association of Convenience Stores. “All the rest are exempt from the bill.”
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Digital Transactions: Will Cap One’s Deal for Discover Create ‘True’ Network Competition? Depends on Whom You Ask
Without passage of the CCCA, Capital One’s ownership of Discover’s credit card network and the Pulse debit network does not create true network choice because Visa Inc. and Mastercard Inc. require financial institutions issuing cards on their networks to route transactions over those networks, says Doug Kantor, MPC’s Executive Committee member and National Association of Convenience Stores General Counsel. That rule would apply to Visa and Mastercard branded cards issued by Capital One.
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American Prospect: Capital One–Discover Merger Tests Bank Regulators’ Merger Approach
“Visa and Mastercard lock banks that issue credit cards into a centrally set scheme of fees and prohibit them from allowing competitors on their cards,” said Doug Kantor of the Merchants Payments Coalition, a group of smaller retailers, in a statement. “No merger can change that bar to competition—only legislation can.”
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NACS Daily: Merchants Say Capital One/Discover Deal Won’t Bring Competition
“This shows Capital One realizes the Credit Card Competition Act is going to pass and wants to be prepared to compete for merchants’ business once that becomes possible,” MPC Executive Committee member and NACS General Counsel Doug Kantor said. “Visa and Mastercard lock banks that issue credit cards into a centrally set scheme of fees and prohibit them from allowing competitors on their cards. No merger can change that bar to competition—only legislation can. If the CCCA is passed, Main Street businesses and their customers get competition regardless of whether the merger goes through. But the merger alone doesn’t get us to that goal.”
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American Banker: Will the Capital One-Discover deal stall Durbin's interchange bill?
Doug Kantor, general counsel at the National Association of Convenience Stores and member of the executive committee of the Merchants Payments Coalition, said that the deal shouldn't impact the bill's chances on Capitol Hill. "It probably doesn't mean anything for legislation, because there's no competition among networks on the merchants' side right now, and this won't change it," he said. "It doesn't really change the landscape in terms of the fact that these major networks, Visa-Mastercard, control the networks and tell the banks how much to charge. So the legislation is every bit as needed as before."
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