Under the proposed reforms that go into effect in July, small banks will receive an exemption from the rules, which limit the amount that credit-card companies and banks can charge [image-nocss] merchants for swipe fees. The banking industry has stated that the exemption would not be effective in practice because merchants will discriminate against debit cards with higher swipe fees.
The MPC's letter refuted that claim, stating that retailers "have no contractual or practical ability to treat debit cards issued by small financial institutions or credit unions differently than those issued by large institutions. Furthermore, our member companies are committed to customer service and it is not in their interest to discriminate against debit cards that so many customers carry."
To read the full letter, click here.
(Andclick here for previous CSP Daily News coverage of interchange-fee reform.)
The MPC is a group of retailers, supermarkets, drug stores, convenience stores, gas stations, online merchants and other businesses who are fighting against unfair credit-card fees and for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition's member associations collectively represent about 2.7 million stores with approximately 50 million employees.
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