WASHINGTON – As the Senate debates H.R. 627, the Credit Cardholders’ Bill of Rights Act, NACS and other retail group are pushing for an amendment that would increase transparency of credit card fees and allow merchants to offer a wider array of discounts to consumers.
NACS, along with members of the Merchants Payments Coalition (MPC), sent a letter to members of the Senate asking for their support of the Consumer Discount and Fee Transparency Amendment, which is being offered by Sens. Richard Durbin (D-IL) and Kit Bond (R-MO).
The MPC wrote:
“Our members currently do not have the ability to offer a discount on debit cards and low-fee credit cards, which would greatly benefit both retailers and consumers. Although our member companies may be currently "technically" able to provide their customers a discount for cash and checks the sheer number of rules the credit card companies have in place make this all but impossible for businesses. Visa and MasterCard collect credit card interchange fees of roughly 2 percent or more on high-end rewards card purchases, which hinders the ability of storeowners to keep prices low for customers across the board.
“Being able to discount for more affordable card products would be a win-win situation for everyone involved. Retailers would have the freedom to make their own pricing decisions while at the same time being able to help their customers who are looking for all opportunities to save money in this tough economy. Not to mention, customers would still have complete freedom to choose what type of payment they want to use.
“Increased transparency surrounding these fees is also very important for both our customers, (most customers don't even know these fees exist) and for policymakers who will hopefully continue to work to address these uncontrollable fees that generated over $48 billion in revenue last year at the expense of merchants and unaware consumers.
“We strongly encourage you to support the Durbin-Bond Consumer Discount and Fee Transparency amendment as it takes the first step toward providing relief to consumers and retailers struggling to stay afloat in these tough economic times.”
NACS is urging members to contact their senators and ask them to support the Durbin-Bond Consumer Discount and Fee Transparency Amendment.
For additional questions, contact Lyle Beckwith at lbeckwith@nacsonline.com.