WASHINGTON–With the current session of Congress nearly over, the Merchants Payments Coalition is keeping up its pressure in support of the Credit Card Competition Act, issuing statements and backing advertising that alleges rising card “swipe fees” could “potentially cost consumers over $20 billion in higher prices for everything from dreidels to Christmas trees this holiday season.”
“Everyone knows about Scrooge and the Grinch, but the hidden villains of the holiday season are Visa, Mastercard and the megabanks that issue credit cards under their brands,” MPC Executive Committee member and National Association for Convenience Stores General Counsel Doug Kantor said in a statement. “Swipe fees drive up the cost of everything Americans buy and can mean fewer toys under the tree for families trying to make ends meet amid the highest inflation we’ve seen in decades. That’s not fair and it’s time for Congress to do something about it.”
The MPC said consumers are expected to spend an average $833 during the November-December holiday season for a total of at least $942.6 billion, according to the National Retail Federation’s annual forecast.
At the Cost of Popular Toys
“Based on the average 2.22% rate for Visa and Mastercard, that would include about $18.50 in swipe fees for the average family and would add up to $20.9 billion nationwide if all purchases were made with credit cards,” the merchants organization said, adding the $18.50 figure is enough to buy a Barbie Doll or Lego set, the two most-wanted holiday toys cited in NRF’s survey.
As CUToday.info reported earlier, a TV commercial by MPC and NACS said consumers could buy a new winter coat, pair of headphones or a soccer ball with the savings if swipe fees were subject to competition rather than centrally set by Visa and Mastercard.
One Last Bill
Merchants and credit unions, which adamantly oppose the Credit Card Competition Act – sponsored by Sens. Richard Durbin (D-IL) and Roger Marshall (R-KS) and Reps. Peter Welch (D-VT) and Lance Gooden R-TX) are both watching the omnibus spending bill, the last major piece of legislation before Congress, to see the language is included.