Leading Retailers to Senators: Lower Credit Card Fees
- By [ Austen Jensen ]
- Washington, DC
- 05/07/2024
“The serious lack of competition in the credit card market means that even though the cost of accepting and processing electronic payments has gone down, Wall Street banks and card networks continue to raise credit card fees unchecked. That’s led to higher costs for businesses, and higher prices for consumers. According to the Nilson Report, merchants paid a record $160.70 billion in swipe fees in 2022. For some companies, swipe fees are the second largest business expense behind labor costs. And interchange fees are the highest junk or hidden fee paid by far.
“The credit card market is clearly broken. To fix it, Congress must pass the Credit Card Competition Act (CCCA). This bipartisan legislation will insert needed competition into the payments ecosystem which is the only way to put pressure on Wall Street Banks and card networks to lower interchange fees.
“Senators have an opportunity this week to take action and rein in these fees. Retailers thank Sens. Marshall and Durbin for their leadership and staunch dedication to fixing our dysfunctional payments system. We urge Senate leadership to take up their amendment and move it with the legislation to reauthorize the Federal Aviation Administration (FAA).”
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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.
RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.
Tags
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Payments
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Supporting Free Markets and Fostering Innovation
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Competition
