Merchants and Consumers Welcome Judiciary Committee Passage of Bipartisan Legislation to Crack Down on the Hidden and Excessive Credit Card Fees
Credit Card Fair Fee Act Would Mean Free Market Transparency, End Card Price Fixing
Washington, D.C. - July 17, 2008 - The retail community welcomed the House Judiciary Committee's passage of the "Credit Card Fair Fee Act" of 2008 (H.R. 5546) with the support of virtually equal numbers of Republicans and Democrats.
"The days when Visa and MasterCard are able to impose exorbitant fees on consumers are numbered. Now that Congress and the public are learning how credit card fees are driving up the price of gas, food and other necessities, the big credit card companies are in for a very rough ride," said Richard Oneslager, Chairman, National Association of Convenience Stores (NACS), a member of the Merchants Payments Coalition (MPC).
Interchange fees amount to approximately $2 of every $100 spent using credit cards. Credit card interchange fees cost Americans $42 billion last year and inflate the cost of virtually all retail goods, but especially skyrocketing food and gasoline prices. Currently, credit card interchange rates are set in secret, hidden from view, and exclude merchants from the negotiating process.
"From the cost of groceries to the cost of gasoline, working families are feeling the pain in their wallets," said John Motley, Senior Vice President, Government and Public Affairs, the Food Marketing Institute (FMI), an MPC member. "The abuse of American consumers and businesses by credit card companies and big banks with a hidden fee that drives up the cost of every retail item needs to end."
The Credit Card Fair Fee Act will allow merchants for the first time to be included in the negotiating process with Visa and MasterCard, separately with their banks, to come up with a voluntary agreement on interchange rates and terms.
"On behalf of our retail members and their customers, NACS applauds Chairman John Conyers and the Republicans and Democrats of the House Judiciary Committee who stood together today to pass H.R. 5546, the Credit Card Fair Fee Act," said Oneslager. "This strong show of bipartisanship vindicates the efforts of thousands of NACS members that have taken the issue of outrageous credit card fees and practices to Congress. We look forward to similar bi-partisan support by the full House and Senate."
The Merchants Payments Coalition (MPC), UnfairCreditCardFees.com, is a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit card fees and fighting for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition's member associations collectively represent about 2.7 million stores with approximately 50 million employees. For further information, please visit http://www.unfaircreditcardfees.com.