In recent weeks, the Merchants Payment Coalition (MPC) has demonstrated that debit card transactions are very similar to electronic check clearing and that banks should treat the transactions similarly. [image-nocss] Electronic check clearing transactions are not subject to interchange fees; therefore, there is no justification for debit cards to be subject to unfair credit card swipe fees.
"This is very good news for all PMAA members," said PMAA chairman Gerry Ramm. "I have asked the PMAA staff to begin organizing a national grassroots effort to support the Specter amendment," he added.
The bill Specter wants to amend is the Restoring American Financial Stability Act of 2010 that was introduced on Monday, PMAA said.
Specter's bill will mirror legislation introduced in the House of Representatives by Rep. Peter Welch (D-Vt.), said the Electronic Payments Coalition (EPC) in a statement.
The group, which represents the interests of the banking and credit-card industry, opposes such legislation, saying that it "will shift the cost of accepting debit and credit cards onto consumers and will allow merchants to effectively surcharge their customers who choose to pay using debit, credit or chargea practice that is currently illegal in several states."
Frank Pinto, president and CEO of the Pennsylvania Association of Community Bankers, said, "This bill is chock full of mystery and innuendo that all add up to one thing: consumers will pay more so merchants can pay less. When retailers accept cards in their stores, they receive profits, customers, guaranteed payment and a golden key to e-commerceand they shouldn't have their customers pay for this cost of doing business."
Trish Wexler, spokesperson for the EPC, said, "This is an egregious assault on consumer protection. The bill is disguised as a measure to allow for cash discountssomething that is already allowed by federal law and by all card network contractsbut would instead open up the door for bait-and-switch advertising schemes, charging additional checkout fees at the register, and discrimination against certain cardholders."
(Click here for previous CSP Daily News coverage.)
Andclick here to discuss this story and credit-card fees in general.
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