In The News

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.

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

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.”

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.

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.