WASHINGTON–The National Association of Retailers has sent a letter to Congress urging reconsideration of any repeal of rules around debit card fees.
In a letter signed by numerous, national retailers and sent to the Subcommittee on Financial Institutions and Consumer Credit, the retailers said “we urge you to reconsider legislation to repeal financial reforms that are critical to U.S. businesses and our customers. The debit card fee and rule reforms prescribed in Section 1075 of the Wall Street Reform and Consumer Protection Act have provided significant relief to Main Street businesses from anti-free market practices employed by global credit and debit card brands…As cornerstones in the business community, we are staunch supporters of free enterprise, and generally do not support any market intervention unless markets are not functioning efficiently. Credit and debit card acceptance is a prime example of a non-functioning marketplace.”
The retailers said that the prevalence of electronic payments has made it all but impossible for a business not to accept credit and debit cards, which has “enabled global card brands to leverage a business model whereby they can change the rules of card acceptance at any moment. In many instances, these rule changes constitute an enormous free market intrusion and overstep by limiting the flexibility of card acceptors to make decisions about how to best run their businesses and serve their customers.”
'Competitive Gap'
The retailers’ letter went on to say that the “competitive gap between international and U.S. payment card acceptors is growing every day that the U.S. market fails to move toward a more transparent, equitable, and free market for card acceptance. There are several reforms still needed in the credit card marketplace to improve payment acceptance as the United States continues to adopt new and innovative ways to pay in the mobile and e-commerce spaces. Debit card reforms have been a major step in the right direction, and any removal of those reforms would be a monumental step in the wrong direction for U.S. businesses and consumers.”
The companies signing the letter urged the committee to not take action on HR 5465, which would repeal certain debit card fees and reforms.