On Wednesday, June 29, the Federal Reserve Board of Governors will hold an open meeting to discuss and vote on final debit card swipe fee rules. The Fed has received intense pressure from the banks to raise the cap on swipe fees above the 12 cents it proposed last December. The banks have also put pressure on the Fed to delay the effective date of the rule.
On June 22, the Merchants Payments Coalition (NACS is a founding member) sent a letter to the Federal Reserve Chairman Ben Bernanke, reminding him that the Fed cannot be influenced by politics and to follow the letter of the law in the Durbin amendment. The release of the Fed€™s final rule on Wednesday is an important step forward in the fight for swipe fee reform.
Last week, Senator Mark Kirk (R-IL) introduced legislation that would allow state-run rest areas to sell fuel and food and unfairly compete against small businesses operating at exits along the nation€™s Interstate highways. NACS opposes the commercialization of Interstate rest because it would dramatically decrease sales at neighboring convenience stores. In fact, Virginia Tech released a study this year predicting a 46% decrease in Interstate-serving gas stations sales in each county, a 44% decrease in sales at Interstate-serving restaurants, and a 35% decrease in truck service sales at Interstate-serving truck service businesses from the commercialization of rest stops. NACS, along with The Partnership to Save Highway Communities, sent a letter to Capitol Hill opposing any legislation that would allow the commercialization of rest stops.
The U.S. Department on Health and Human Services (HHS) included the substance styrene in its "12th Report on Carcinogens." However, the department's findings are at odds with most of the scientific community, as well as those of the Food and Drug Administration and the European Union's chief scientific body. Styrene is a building block used to make a variety of everyday products, including many foodservice products sold in convenience stores such as coffee, cinnamon and food storage containers, as well as certain children's toys. Various stakeholders in the styrene industry have taken assorted legal action against HHS, and last week NACS attended a Styrene Stakeholders coalition meeting to ensure the industry's interests are represented as this dialogue moves forward.
The HHS study is an outlier, and in no way alters the current legal status of products containing styrene. Based on scientific tests over five decades, government safety agencies have determined that polystyrene is safe for use in foodservice and other products. The report does not establish that styrene presents a risk to persons in their daily lives. NACS does not believe that the listing of styrene should have any immediate implications for its members but will continue to watch this issue.