Technology/Services

...as NACS Urges Retailer Petitions

Armour invokes "grassroots fire" to challenge unfair credit-card fees
LAS VEGAS -- Calling for a "grassroots fire" involving petitions in every c-store in the country, National Association of Convenience Stores president and CEO Hank Armour unveiled a major initiative, a NACS advocacy campaign that he said will integrate industry and consumer frustration over outrageous credit-card interchange fees with congressional action, during the opening general session at the 2009 NACS Show in Las Vegas yesterday.

"Successful political action requires two things: skillful lobbying on Capitol Hill and dramatic grassroots activity," said Armour. "We now [image-nocss] need to light grassroots fire around the country" and to get customers to speak out over credit-card interchange fees via a new NACS-sponsored petition campaign, similar to those that have already resulted in millions of signatures at 7-Eleven and Circle K stores, Armour told attendees.

"Between now and the second week of January, we want every convenience store in the United States to run an interchange fee petition drive," said Armour. "Let's overwhelm Congress with millions and millions of signatures demanding action to fix the broken credit-card system. With tremendous consumer support combined with the well-drafted legislation we have moving on Capitol Hill, we strongly believe that 2010 will be the year in which interchange reform is achieved."

(Incoming NACS chairman Jay Ricker of Ricker Oil discussed the petition initiative in an exclusive CSP Daily News report and CSPTV interview earlier this week.Click here for the multimedia coverage.)

Armour said that the new initiative (as well as others announced at the show) is developed with one goal in mind: "To create such compelling value [through knowledge, connections and advocacy] that membership in our organization is indispensible for your success."

NACS aired two new videos urging credit-card interchange reformone for convenience retailers and one developed for consumersyesterday at the NACS Show.

In the videos, both retailers and consumers express frustration and anger over credit-card interchange fees, which totaled over $48 billion in the United States in 2008. The videos also include footage from a September 30 press conference at the U.S. Capitol in which 7-Eleven representatives, franchisees and members of Congress expressed outrage over credit card interchange fees.

"It's time to act; it's time to stand up for small business and our customers," 7-Eleven CEO Joe DePinto said at the Washington, D.C., press conference, announcing that the company delivered a record 1.66 million customer signatures to Congress as a result of the company's "Stop Unfair Credit-Card Fees" credit-card interchange petition drive.

(Click here for previous CSP Daily News multimedia coverage of the press conference.)

"Those fees are probably coming back to me whether or not I use cash," noted one customer in the new NACS video, with another adding, "It bites us big time every time we go into a store."

Citing another credit-card issuePCI complianceArmour commented during the general session that the credit-card companies have created another issue that is like "interchange all over again" by forcing mandates on the industry without the opportunity to productively engage in meaningful dialogue.

He stressed that NACS is committed to establishing that dialogue and is providing retailers with the tools necessary to secure their customer data, including a new computerized PCI compliance tool that will help members achieve full compliance.

Armour said, "With the new leadership in Congress, I don't have to tell you that a new political reality exists in Washington. Never before have our products and operations been more targeted by new legislation"including FDA regulation of tobacco products, health-care reform, cap and trade, renewable fuels mandates, menu labeling legislation, commodity speculation and card check.

"To succeed in this new reality involves much more than just protecting and defending your interests. Today it's about building balanced relationships, relationships with key players in both partiesbefore bad policy is even considered. But we can't do it alone. We can't do it without you. We need your ideas. We need your voice. We need your engagement and we need your commitment," said Armour. "With that, we will continue to deliver the compelling value that you expect from NACS."

[The NACS Show kicked off this week with more than 1,000 exhibits filling 350,000 net square feet of floor space, showcasing the newest products and services for the $624 billion convenience store industry. NACS said it expects approximately 22,000 attendees to participate in the annual event. Check the CSP Twitter Feed for frequent updates and insights from the sessions, the show floor and more, including the fun and Vegas nightlife.]

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