Senate Bill 138 would crack down on fines and fees charged by credit-card companies, including a provision that would help small merchants struggling with tight card restrictions, according to a report in the Times Argus.
Senate President Pro Tem Peter Shumlin, D-Windham, sponsored the bill along with two other Democrat colleagues and a Senate Republican.[image-nocss]
"This proposal is an opportunity to show that Vermont is a leader in this country when it comes to protecting the rights of individuals and small-business owners," said Sen. John Campbell, D-Windsor.
The bill caps late fees that credit-card companies can charge and requires them to notify customers in writing before they change fees, terms or other parts of a contract, according to the newspaper. Credit-card companies could be fined up to $10,000 for violating these terms.
An amendment to the bill would extend protections to Vermont businesses, as well. The amendment, aimed at what the Senate leaders called "mom-and-pop grocery stores" would prohibit card companies from fining or charging merchants for a variety of activities, including allowing small businesses to choose what credit cards they will and won't accept.
The Vermont Retail Association and the Vermont Grocers Association support the legislation. Tasha Wallis, the executive director of the retail group, told the newspaper many consumers don't realize that store owners pay when a customer uses a credit card, and the fees are all different for the different types of cards.
"In 2001, the credit-card industry made about $16 billion off these fees," she said. "Today that amount is $48 billion."
The Merchants Payments Coalition, representing 2.7 million U.S. businesses, hailed the unanimous Senate vote as a major first step toward credit-card reform nationwide.
"[This] is a significant victory for Vermont's small businesses and their customers, and we applaud the Vermont Senate for standing up to the big banks and credit-card companies to get this done," said Jennifer Hatcher, group vice president at the Food Marketing Institute. "The unanimous passage of this legislation means Vermont is a large step closer to demanding fairness, competition and transparency from the credit-card companies."
She added, "Credit-card swipe fees are one of the largest expenses small businesses face, and these huge, hidden fees hurt small businesses and consumers at the very time we're relying on them to rebuild our economy."
The Merchants Payments Coalition is a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit-card fees and fighting 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.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.