WASHINGTON–At the same time credit unions represented by both NAFCU and various state leagues were hiking the Hill to lobby against the proposed interchange bill, more than 200 merchant trade associations and close to 1,700 companies were arguing the opposite point of view this week.
At the beginning of the week, NAFCU President and CEO Dan Berger asked attendees at the trade group’s Congressional Caucus if anyone believed it was a coincidence the merchants were in town at the same time as credit unions.
In a statement, the Merchants Payments Coalition said the legislation sponsored by Sens. Richard Durbin (D-IL) and Roger Marshall (R-KS) would “finally bring badly needed competition to the credit card market.”
As CUToday.info has reported, credit unions strongly disagree.
“This legislation introduced by Senator Durbin and Senator Marshall will bring much-needed competition into the United States credit card market, which has been dominated by only two players for far too long,” the merchants said in a letter to Congress “As members of the retail community and champions of the free market, we typically do not support government intervention except in cases where a market is not functioning. That is the case with the credit card marketplace in the United States.”
‘One of the Most Important Things Congress Can Do’
In a separate letter, the merchants added, “Passing this bill is one of the most important things Congress can do to provide relief for small businesses and consumers struggling amid near-record inflation in every state and congressional district. While this legislation would benefit all merchants, it is small retailers who are calling for swipe fee reform more than any segment of our industry. Small retailers have the narrowest profit margins and fewest resources and are hit hardest by continuing unjustified increases in swipe fees.”
The letters were signed by 1,668 companies and 231 trade associations and were sent to all members of the House and Senate by the Merchants Payments Coalition and signers that included 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.
The letters argued that “swipe” fees are averaging over 2% of the transaction that banks and card networks like Visa and Mastercard charge merchants to process credit card transactions, and that credit and debit card swipe fees have more than doubled over the past decade, soaring 25% last year alone to a record $137.8 billion.
‘Highest Operating Cost’
“They are most merchants’ highest operating cost after labor and drove up consumer prices by about $900 a year for the average family last year,” the Merchants Payments Coalition said.
The merchants have argued that they could use savings in swipe fees to reduce costs to consumers. Credit unions have responded by saying, among other things, that the merchants will not pass along those costs and instead will build their own profits.
The Very Best in CU Reporting. For You. For Free. Or Your Money Back.
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.