Merchants Say Fed Should Not Delay Move to Increase Competition Over Online Debit Transactions
MPC said the Federal Reserve should turn down a request from banks to delay implementation of its long-sought clarification that merchants’ right to choose which payment networks process debit card transactions applies the same online as it does in stores.
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Credit Unions Today: 'Nothing Romantic' About Swipe Fees on Valentine's Day, Says Merchant Group
The MPC cited data from the national Retail Federation that show consumers are expected to spend an average $193 on Valentine’s Day items such as candy, flowers, jewelry, greeting cards, clothing and evenings out this year for a total of $25.9 billion. Based on the average 2.22% rate for Visa and Mastercard, that would include $4.28 in swipe fees – as much as a Valentine’s greeting card or a piece of chocolate from a mid-priced gift box – and would add up to $575 million nationwide if all purchases were made with credit cards, according to the MPC.
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Digital Transactions: Georgia Takes Aim at Interchange Levied on Sales Tax
In general, these swipe fees are one of the highest operating costs for merchants, after labor, and are typically built into pricing, which drives up the cost of goods and services for the average family by about $1,000 a year, according to the Merchants Payments Coalition.
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American Banker: Bank Groups Ask Fed for More Time to Comply With New Debit Network Rule
MPC pushed back against the banking groups' request, arguing that card issuers have had ample time to prepare. In a response letter, the group noted that the rule change has been in the works for two years, and that banks and credit unions should have been started preparing for this change after Dodd-Frank. "They've already had their delay and shouldn't be allowed to continue dragging their feet," MPC executive committee member and National Association of Convenience Stores General Counsel Doug Kantor said in a written statement. "This is just a stalling tactic to let them continue operating under a virtual monopoly rather than having to compete like other businesses. The time for competition over online debit transactions has come, and implementation should take effect as scheduled."
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Financial Regulation News: MPC Advocates Credit Card Competition Act Enactment
The Merchants Payments Coalition (MPC) has encouraged lawmakers to pass the Credit Card Competition Act, noting the legislation is needed to prohibit China from infiltrating the domestic payments processing market.
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CNBC: How Small Businesses Are Fighting Inflated Credit Card Swipe Fees
Swipe fees drove up prices for the average American by at least $900 in 2021, according to estimates from the Merchants Payments Coalition, which represents a variety of small businesses including restaurants and convenience stores.
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Furniture Today: Forget Spy Balloons; Retail Group Says China a Credit Card Security Threat
The Merchants Payment Coalition says passage of the Credit Card Competition Act would add a layer of safeguarding, keeping China from “infiltrating” the U.S. payments processing market.
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American Prospect: Small Businesses Rise to Fight Wall Street
Though founded over a decade ago, MPC’s efforts have undergone a resurgence since the pandemic, with a stronger grassroots presence. “There’s a lot of energy right now behind this issue and it’s only going to keep building as fees continue to go up,” said Doug Kantor, general counsel for the National Association of Convenience Stores and a founder of the Merchants Payments Coalition.
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Merchants Tell Congress Credit Card Competition Act Would Block National Security Threat from China UnionPay
The Merchants Payments Coalition told a House committee holding a hearing on economic threats from China that passage of the Credit Card Competition Act is needed to keep China from “infiltrating” the U.S. payments processing market.
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Wilmington News-Journal: This is Why Delaware Needs Relief from Rising Credit Card 'Swipe' Fees
For most merchants, these fees are their highest operating cost after labor and drive up prices by $900 a year for the average Delaware family, according to the Merchants Payments Coalition.
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