NACS Hails New Vermont Bill to Stop Credit Card Company Abuses

Yesterday, the Vermont Senate passed a measure that would give retailers the ability to choose how to accept various payment methods.

April 07, 2010

ALEXANDRIA, VA - Legislation passed through the Vermont Senate that will help rein in existing abusive practices by credit card companies, according to NACS.

S.138 seeks to give retailers a say in how they accept various payment methods. In addition to prohibiting the credit card companies from interfering with a retailer??s ability to set certain conditions regarding card acceptance, the bill would allow the state attorney general to enforce violations by the credit card industry.

"The consumer-friendly legislation passed through the Vermont Senate addresses unfair practices by the nation??s largest financial institutions that cost Americans $48 billion in credit and debit card 'swipe?? fees alone," said NACS Senior Vice President of Government Relations Lyle Beckwith. "We applaud the Vermont Senate for standing up to the out-of-control credit card industry and telling them, 'Enough is enough!??"

The bill was unanimously given preliminary approval by the state Senate on March 30; today??s vote moves it through the Senate. The bill will now go to the Vermont House for consideration.

"The Vermont Senate??s action could be the start of a national movement," suggested Vermont Grocer??s Association (VGA) President Jim Harrison in praising legislators for taking one the issue of swipe fee reform. The provisions of the bill would:

  • Prohibit the card companies from preventing retailers from setting minimum or maximum transaction amounts;
  • Prohibit the card companies from imposing a fine or penalty relating to the way a retailer displays prices;
  • Stop the card companies from preventing retailers from deciding that they won??t take cards at one or more locations, while still taking cards at other locations;
  • Require the Vermont Banking & Insurance Department to analyze a provision that would prohibit the card companies (Visa and MasterCard) from centrally fixing the price of interchange; and
  • Institute significant penalties for the use or possession of credit card skimming devices.

Consumers are clearly concerned about how credit and debit card swipe fees result in higher retail prices. Last year, 7-Eleven stores delivered 1.66 million customer signatures from a petition campaign urging Congress to stop unfair credit card fees. It was the most signatures ever delivered to Congress on a policy issue in American history. Earlier this year, more than 10,000 convenience stores committed to collect consumer signatures on petitions in their stores in a campaign coordinated by NACS, and Speedway SuperAmerica is conducting its own consumer petition drive for the month of April.

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