Modern Retail: How New Legislation is Trying to Target Credit Card Swipe Fees
Last year, swipe fees went up 25% and cost U.S. retailers a collective $137.8 billion, according to the Merchants Payments Coalition, a lobbying group that supports the act. More than 1,700 retailers, including many gas stations and grocers, signed onto a letter in September supporting the act, saying the credit card market “has been dominated by only two players for far too long.” Visa and MasterCard control at least 80% of the credit card market, according to the coalition, and set the swipe fees charged by the banks.
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Payments Dive: Durbin Maps Path for Card Bill
Interest groups representing retailers and merchants, including the Merchants Payments Coalition, are engaged in a fierce battle over the legislation with counterparts, including the Electronic Payments Coalition, representing the card companies and banks.
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Insider Intelligence: Companion Credit Card Bill Improves Odds of Swipe Fee Crackdown
The Merchants Payments Coalition lobbied for the bill earlier this year, saying it could help lower costs for both merchants and consumers already burdened by high inflation.
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CNN: Walmart and Target Push to Lower Credit Card Fees
“Swipe fees for credit cards are higher in the United States than anywhere else in the industrialized world — more than seven times as high as Europe,” (the Merchants Payments Coalition and hundreds of businesses) wrote in a letter to lawmakers last week. “They are an inflation multiplier.”
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NACS Daily: Bills in the House, Senate Seek to Inject Competition Into the Credit Card Market
“The Credit Card Competition Act will help Main Street businesses and consumers deal with credit card swipe fees that have exploded to more than $900 per American family each year,” (Doug) Kantor said, who is a MPC Executive Committee member. “Representatives Welch and Gooden should be commended for their willingness to stand up against powerful Wall Street megabanks that all agree to charge the same centrally fixed prices to the detriment of American consumers and small businesses."
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Payments Dive: House Lawmakers Add Credit Card Competition Bill
The Merchants Payments Coalition (MPC) noted credit and debit card swipe fees reached a record $137.8 billion last year. For most merchants, those fees are the highest operating cost after labor. They’re also passed on to consumers, the MPC contended, driving up consumer prices by about $900 a year for the average family in 2021. “U.S. swipe fees are the highest in the industrialized world and the card industry wants to keep them hidden so American families don’t know how much they’re paying,” said MPC Executive Committee member Doug Kantor in a news release. “This legislation would make card networks compete and give them incentives to improve service and security while keeping costs in check.”
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Merchants Welcome House Introduction of Credit Card Competition Act
The Merchants Payments Coalition welcomed House introduction of the Credit Card Competition Act by Representatives Peter Welch, D-Vt., and Lance Gooden, R-Texas.
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Barron's: Visa and Mastercard Get Nearly All Credit Card Swipe Fees. A New Bill Wants to Break Their Hold
“The Credit Card Competition Act would bring much-needed relief to retailers and American consumers by simply requiring that Visa and Mastercard compete with other networks for both merchant and bank business,” the Merchants Payments Coalition, which represents merchant trade groups, said in the letter.
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NACS Daily: Nearly 1,700 Merchants Call on Congress to Support Swipe Fee Legislation
The letters—signed by 1,668 companies and 231 trade associations—were sent to all members of the House and Senate by the Merchants Payments Coalition. Both asked lawmakers to co-sponsor or support S. 4674, the Credit Card Competition Act, which was introduced in July by Sen. Durbin (D-Ill.) and Sen. Marshall (R-Kan.). Signers include retailers, grocers, convenience stores, gas stations, restaurants, hotels and a wide variety of other merchants of all sizes, along with associations representing the same sectors.
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Wall Street Journal: Walmart, Target Urge Lawmakers to Pass Bill Taking Aim at Visa, Mastercard Fees
Hundreds of small retailers were among nearly 1,700 merchants signing an MPC letter to Congress: “Swipe fees for credit cards are higher in the United States than anywhere else in the industrialized world—more than seven times as high as Europe,” said the merchant group, which includes a diverse assortment of small businesses like gas stations, restaurants and grocers along with giant chain retailers. “In 2021 alone, U.S. merchants and consumers paid nearly $138 billion in card fees.”
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