Three in Four Americans Support Credit Card Fair Fee Act
National Poll Finds Voters Want To Rein In Hidden Credit Card Fees That Inflate Prices; Legislation Would End Credit Card Secret Price Fixing
Washington, D.C. - July 11, 2008 - Better than three in four (77%) voters favor the "Credit Card Fair Fee Act," bi-partisan legislation that would empower retailers to negotiate credit card fees directly with the credit card industry as a means to cut interchange fees, according to a poll released by the Merchants Payments Coalition (MPC).
According to the survey, public sentiment that something needs to be done about the credit card industry is at an all-time high. Concerns about credit card industry fees, policies, and practices touch hot buttons across party lines: identical 51% majorities of Republicans and Democrats alike say they "strongly" support passage of the Credit Card Fair Fee Act.
Consumers are three times as likely to say credit card companies don't do business the right way compared to cable companies and six times as likely to say that when compared to phone companies. In particular, nearly two in three (65%) say credit card companies don't share their business values.
Credit card fees known as interchange have skyrocketed on food and gasoline in recent years; they cost Americans $42 billion last year. Revenue that goes to the credit card industry on motor fuels alone has risen steeply in the last year alone, closely following the accelerating price of gasoline.
Interchange fees amount to approximately $2 of every $100 spent using credit cards. These fees inflate the cost of nearly everything consumers buy at retail whether or not they use plastic, cash, check, or food stamps. In 2008, the average American family will pay upwards of $427 in hidden credit card interchange fees.
Currently, credit card interchange rates are set in secret, hidden from view and exclude merchants from the negotiating process. Raising interchange fees is how Visa and MasterCard encourage banks to issue more credit and debit cards - as long as rising rates are kept top secret, consumers have no way of knowing the extra costs they are paying through higher prices. The Credit Card Fair Fee Act would introduce market transparency and open negotiations into the process.
About the survey
Penn, Schoen, and Berland LLC conducted telephone interviews with 605 likely voters nationally June 19, 2008 on behalf of UnfairCreditCardFees.com. The margin of error for national voters is +/- 3.98 at the 95% confidence level and larger for subgroups
Click here for the full results of the poll.
About UnfairCreditCardFees.com/Merchants Payments Coalition
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.