In The News

Bloomberg Law: Banks Warn Free Accounts at Risk in Fed’s Debit Swipe Fee Plan

“Reducing the fees that are deducted from debit transactions provides cost savings to merchants that ultimately accrue to the benefit of consumers, because merchants operate in an intensely competitive market environment with tight profit margins,” the Merchant Payments Coalition said in a comment letter.

The Business Journals: Regulators take aim at airline credit-card reward programs

Doug Kantor, executive committee member for the Merchant Payments Coalition and general counsel at the National Association of Convenience Stores, said in a statement the legislation would ensure competition in the marketplace and keep companies honest.

Payments Dive: Fed bombarded by debit card fee commentary

Similarly, in a 22-page letter last week, the Merchants Payments Coalition suggested ways in which the Fed should revise its proposal. “The MPC believes that several modifications are needed to the Proposed Rule in order to make it fully consistent with the governing statute,” the May 10 letter said.

Digital Transactions: Merchants And Banks Prepare for Battle Over the Fed’s Proposed Debit Adjustments

“The [debit interchange] rate ought to be capped at 6 cents per transaction, as the average cost of a debit transaction for banks is 3.9 cents,” says Doug Kantor, an MPC executive committee member and general counsel for the National Association of Convenience Stores. “[Large] banks earn a 35% margin on debit transactions, which is higher than the profit margin on their business as a whole. The Fed proposal would lock in a 270% return, which is way too high.”

Convenience Store News: Industry Groups React to Proposed Debit Swipe Fee Changes

Merchants Tell Fed Debit Card Swipe Fees Should Be Competitive

MPC told the Federal Reserve that a proposed reduction in high “swipe” fees large banks charge merchants to process debit card transactions is welcome but still provides banks with huge profit margins that no competitive business in the nation could charge.

Mass Market Retailers: MPC seeks changes to ‘swipe’ fees proposal

The Merchants Payments Coalition, a group lobbying for “a more competitive and transparent” payment-card system,” is asking the Federal Reserve to further modify its proposed cap on the “swipe” fees merchants pay banks to process the transactions. In a letter to the Fed’s Board of Governors, the MPC said alterations proposed by the Fed last fall, while welcome, don’t go far enough in limiting the “huge profit margins” reaped by large banks for processing credit-card and debit-card payments.

Washington Times: Bill aimed at reducing credit-card ‘swipe fees’ puts Chinese company in crosshairs

“If UnionPay is writing the standards, they may be able to work things so they have access to data, or they can do things none of us want them to do. We don’t even have transparency in EMVCo. What is China pushing for?” said Doug Kantor, general counsel at the National Association of Convenience Stores (and MPC Executive Committee member). Swipe fees reached a record $172 billion last year, costing families an average of $1,000, according to data from the Merchants Payment Coalition, which supports the legislation.

Decatur Tribune: Merchants Agree With Durbin That Banks and Airlines Are Undermining Credit Card Rewards

The Merchants Payments Coalition today agreed with Senator Richard Durbin that airline industry practices are the biggest threat to credit card rewards and that more competition would help consumers earn better benefits and savings. “Senator Durbin is right: banks and airlines are taking away peoples’ rewards by devaluing them and making them hard to use,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “If they had more competitors pushing them to do the right thing, consumers would be treated better. Just 10 banks have more than 80 percent of the Visa and Mastercard credit card market and they all charge the same centrally fixed prices. Competition keeps businesses honest in what they offer their customers, and the lack of competition is the core of the problem that Senator Durbin pointed out.”

Merchants Agree With Durbin That Banks and Airlines Are Undermining Credit Card Rewards

MPC agreed with Senator Richard Durbin that airline industry practices are the biggest threat to credit card rewards and that more competition would help consumers earn better benefits and savings.