In The News

Digital Transactions: The MPC Fires Back at Claims Merchants Won’t Pass Along CCCA Savings to Consumers

Claims by banks that merchants won’t pass along savings from the Credit Card Competition Act to consumers are grossly misleading and do not reflect the economic realities merchants face, argues the Merchants Payments Coalition, a lobbying group representing sellers on payments-acceptance matters.

Payments Journal: Fed Receives Overwhelming Response to Proposed Interchange Fee Changes

On the merchant side, the National Retail Federation questioned if the changes would still leave the cap too high. They encouraged the Fed to consider routinely updating the interchange cap in years to come. In the same vein, the Merchants Payments Coalition supported the rate reduction and proposed lower rates.

Payments Journal: Fed Receives Overwhelming Response to Proposed Interchange Fee Changes

Finance Magnates: Debit Card Fees and the Power Struggle Between Merchants and Banks

The Merchants Payments Coalition estimates that exempting more banks from regulations would translate to an additional $4-5 billion annually in swipe fees. This comes at a particularly inopportune time, as merchants are already grappling with rising inflation. For many, these additional fees could erode already thin profit margins.

Digital Transactions: A Bill That Would Cut the Number of Banks Covered by Durbin Advances Out of Committee

The closeness of the vote suggests many committee members have concerns about the impact of increasing debit card fees on merchants. “The vote shows that members of the committee are realizing that voting to increase inflation is not good policy or good politics,” says Doug Kantor, an MPC executive committee member and general counsel for the National Association of Convenience Stores. Kantor adds that the committee had discussed changes to the proposed asset cap for debit card issuers, and suspects that changes will be required before the bill can advance to a vote by the House. “It’s unlikely that the bill will come to a vote unless changes are made,” Kantor says. “[Being] pro-inflation is not a good thing.”

Merchants Say Allowing More Banks to Price-Fix Debit Card Swipe Fees Would Cost Consumers Billions

MPC called on the House Financial Services Committee to reject a legislative proposal that would allow scores of large banks to price-fix their debit card swipe fees, saying the move could cost consumers as much as $5 billion.

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.”