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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Law360: Fed Stirs Pot With Call for Lower Cap on Debit Swipe Fees
"Banks have been charging more than five times their costs for debit card transactions and the Fed is finally saying that's too much," Doug Kantor, general counsel at the National Association of Convenience Stores and executive committee member of the Merchants Payments Coalition, said in a statement.
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PYMNTS: Fed Proposes Slashing Debit Interchange Fees by 30%, to Review Caps Every Two Years
In the wake of the hearing, and in comments provided via email to PYMNTS, various stakeholders began to weigh in on Wednesday. In one example, the Merchants Payment Coalition said that the proposed reduction in fees does not go “far enough,” though they represent “a step in the right direction.” There’s a bit of debate as to what happens with the fees that would be saved from the caps and other changes to the debit system. The MPC noted in its release that routing rules that let merchants choose their networks saved an estimated $9 billion a year, and cited studies showing about 70% of the savings has been shared with consumers.
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Credit Union Times: Feds Propose Reducing Debit Card Interchange Fee
Merchant Payments Coalition Executive Committee Member and National Association of Convenience Stores General Counsel Doug Kantor said in a statement, “Banks have been charging more than five times their costs for debit card transactions and the Fed is finally saying that’s too much. 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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