Another win! Business owners that accept debit cards as a form of payment from customers and clients can celebrate a victory after the Senate rejected an amendment yesterday by Senator John Tester and Senator Bob Corker which would have delayed the already approved interchange fee reforms. The new reforms set a cap on the percentage that credit card companies can charge retailers to process credit card transactions.
The Professional Beauty Association (PBA) participated in a grassroots letter writing campaign to support the implementation of the fee reform without further delay and also signed on to top industry coalition letters in support of implementation of the fee reform.
A big THANK YOU from PBA to all of you for joining our online grassroots campaign and sending a message to Congress!
For more information on the new reforms, here are a list of articles from various media outlets.
A Win for Small Business, Consumers in Swipe Fee Battle - Fox Business, June 8, 2011
“The Senate rejected a move Wednesday to postpone a cap on debit card swipe fees, the charges retailers must pay the banks each time a customer pays for a purchase with a bank card. The cap of between 7 and 12 cents, which is scheduled to go into effect July 21, was proposed by the Federal Reserve in December. Without the cap in place, retailers have been paying the banks up to 63 cents per debit card transaction.” Read More
Senate reins in debit card swipe fees – LA Times, June 9, 2011
“Remember those dark days after the 2008 financial collapse, when Congress vowed it would get tough with the banks? Well, that resolve seems to be dwindling. A move to undo some of the reforms legislators were touting just months ago was barely stopped Wednesday. The issue at hand this time was debit cards. Currently, when you make a purchase with a debit card, the retailer has to pay a so-called swipe fee of 1% to 3% on the transaction. The rate is set by whatever credit card company the bank is affiliated with – often Visa or MasterCard – but the fee goes to the bank. Banks say they have to charge swipe fees to cover the costs of processing the transactions. But in reality, as the Federal Reserve has determined, the fees are far in excess of the banks’ costs.” Read More
Banks Defeated in Senate Vote on Debit Card Fees - New York Times, June 8, 2011
“WASHINGTON – The Senate refused Wednesday to delay new rules that would sharply cut the fees that banks can charge retailers to process debit card transactions. The debit card rules were a major part of the Dodd-Frank financial regulation law passed last year.” Read More
Bank Lobbyists Fail To Delay Durbin Amendment - Forbes, Jun. 8 2011
“Chalk up a win for Senator Richard Durbin of Illinois and a loss for a powerful bank lobbying group. The Senate rejected a plan to delay regulations that would limit the debit card swipe fees banks charge retailers.” Read More
What the fee cut means to consumers - New York Post, June 8, 2011
“The move by the Senate yesterday not to delay the 80 percent cut in the debit card swipe fee could have a big impact on consumers. A primer on swipe fees. Q: What are swipe fees, anyway?” Read More