Financial World: Visa and Mastercard Settle Long-Running Dispute with Merchants
The Merchants Payments Coalition, representing a broad array of retailers, supermarkets, convenience stores, gas stations, and online merchants, has voiced concerns that the temporary fee reductions are insufficient. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition,” said Christopher Jones, a member of the coalition’s executive committee and senior vice president of government relations at the National Grocers Association. He argued that the settlement offers only token, temporary relief, allowing card companies to raise rates again in the future.
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Digital Transactions: The MPC Fires Back at Claims Merchants Won’t Pass Along CCCA Savings to Consumers
Claims by banks that merchants won’t pass along savings from the Credit Card Competition Act to consumers are grossly misleading and do not reflect the economic realities merchants face, argues the Merchants Payments Coalition, a lobbying group representing sellers on payments-acceptance matters.
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Payments Journal: Fed Receives Overwhelming Response to Proposed Interchange Fee Changes
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Payments Journal: Fed Receives Overwhelming Response to Proposed Interchange Fee Changes
On the merchant side, the National Retail Federation questioned if the changes would still leave the cap too high. They encouraged the Fed to consider routinely updating the interchange cap in years to come. In the same vein, the Merchants Payments Coalition supported the rate reduction and proposed lower rates.
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Finance Magnates: Debit Card Fees and the Power Struggle Between Merchants and Banks
The Merchants Payments Coalition estimates that exempting more banks from regulations would translate to an additional $4-5 billion annually in swipe fees. This comes at a particularly inopportune time, as merchants are already grappling with rising inflation. For many, these additional fees could erode already thin profit margins.
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Digital Transactions: A Bill That Would Cut the Number of Banks Covered by Durbin Advances Out of Committee
The closeness of the vote suggests many committee members have concerns about the impact of increasing debit card fees on merchants. “The vote shows that members of the committee are realizing that voting to increase inflation is not good policy or good politics,” says Doug Kantor, an MPC executive committee member and general counsel for the National Association of Convenience Stores. Kantor adds that the committee had discussed changes to the proposed asset cap for debit card issuers, and suspects that changes will be required before the bill can advance to a vote by the House. “It’s unlikely that the bill will come to a vote unless changes are made,” Kantor says. “[Being] pro-inflation is not a good thing.”
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Merchants Say Allowing More Banks to Price-Fix Debit Card Swipe Fees Would Cost Consumers Billions
MPC called on the House Financial Services Committee to reject a legislative proposal that would allow scores of large banks to price-fix their debit card swipe fees, saying the move could cost consumers as much as $5 billion.
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Bloomberg Law: Banks Warn Free Accounts at Risk in Fed’s Debit Swipe Fee Plan
“Reducing the fees that are deducted from debit transactions provides cost savings to merchants that ultimately accrue to the benefit of consumers, because merchants operate in an intensely competitive market environment with tight profit margins,” the Merchant Payments Coalition said in a comment letter.
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The Business Journals: Regulators take aim at airline credit-card reward programs
Doug Kantor, executive committee member for the Merchant Payments Coalition and general counsel at the National Association of Convenience Stores, said in a statement the legislation would ensure competition in the marketplace and keep companies honest.
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