Trade Groups Unite Against Threat to Swipe Fee Reform
WASHINGTON, D.C. — Retailer associations are urging members of the U.S. House of Representatives to vote against an effort to repeal debit swipe fee reform that is winding its way through Capitol Hill.
In a letter to House Speaker Paul Ryan (R-Wis.) and House Minority Leader Nancy Pelosi (D-Calif.), more than 180 merchant associations asked lawmakers to reject language in the Financial CHOICE Act, which would replace the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Associations who signed the letter include NACS, the Association for Convenience & Fuel Retailing, the National Coalition of 7-Eleven Franchisees, the Petroleum Marketers Association of America, the Food Marketing Institute, and numerous state and local trade groups.
“Six years ago, American consumers and merchants earned a hard-fought victory over escalating, uncontrollable fees with the inclusion of the debit reform measures in Dodd-Frank. These reforms brought a level of transparency (for the first time small businesses can see and know exactly how much they will be charged for a debit transaction from one of the covered institutions) and a level of competition into a market where fees were traditionally set collectively behind closed doors and without regard to the costs imposed on American consumers and retailers," the letter stated.
The letter pointed to benefits of debit reform, which injected competition into the payments market, provided retailers with more transparency, and benefited consumers who have experienced the savings.
"These savings have permitted merchants to reinvest in their businesses, which has supported tens of thousands more jobs and significant economic activity," the groups wrote.
The letter comes one week after the House Financial Services Committee marked up and passed the Financial Choice Act by a vote of 30-26, as CSNews Online previously reported.