Swipe Fees

NRF announced today that it will formally oppose a proposed settlement of a federal antitrust lawsuit over credit card swipe fees charged by Visa and MasterCard, and urged retailers to carefully consider their own decisions before next week’s deadline set by the court.

The National Retail Federation said a revised antitrust settlement filed in federal court today scarcely begins to address retailers’ concerns about credit card swipe fees charged by Visa and MasterCard that cost consumers close to $30 billion a year.

With the first anniversary of debit card swipe fee reform approaching next week, U.S. retailers and their customers are benefiting from savings of up to $18 million a day that previously went to card companies and the nation’s largest banks, the National Retail Federation estimates.

The National Retail Federation today announced that its Board of Directors has authorized the Federation to go to court to block the proposed $7.25 billion settlement of a federal antitrust lawsuit over skyrocketing Visa and MasterCard credit card swipe fees that cost consumers hundreds of dollars a year.

The National Retail Federation today expressed serious disappointment in the final debit card swipe fee regulations set today by the Federal Reserve, calling it a major loss for American consumers. Under the new rule, the current debit card swipe fee rate of 1-2 percent of each transaction – about 44 cents on the average retail purchase but several dollars on bigger-ticket items – will be replaced with a flat fee of not more than 21 cents per transaction for the nation’s largest banks. That is significantly higher than the flat fee of up to 12 cents the Fed originally proposed in December 2010.

NRF President and CEO Matthew Shay issues a statement upon Senate passage of the Tester-Corker amendment to delay swipe fee reform: “This is a landmark victory for American consumers that will give them the break from skyrocketing swipe fees that they have been seeking for years..."

NRF today asked senators to reject a “compromise” amendment offered by Senator Jon Tester that would delay a new federal law intended to save retailers and consumers more than $1 billion a month by lowering “swipe” fees banks charge to process debit card transactions.

NRF welcomed Federal Reserve Chairman Ben Bernanke’s remarks before the Senate Banking Committee today on regulations aimed at lowering the “swipe” fees banks charge retailers and consumers to process debit card transactions by more than $1 billion a month.

NRF welcomed a letter from a coalition of consumer groups opposed to legislation that would delay swipe fee reform scheduled to go into effect this summer.

NRF welcomed today’s commitment by Federal Reserve Chairman Ben Bernanke that the agency will complete final swipe fee reform regulations in time for retailers to begin offering customers discounts and other benefits this summer as scheduled.

NRF said legislation introduced today to delay swipe fee reform scheduled to go into effect this summer would block retailers from giving discounts to consumers who use debit cards and would cost merchants and the public more than $1 billion per month.

NCCR today expressed deep disappointment regarding the introduction of legislation in Congress to halt pro-consumer debit card swipe fee reform.

The National Retail Federation told the Federal Reserve this week that a proposal to cap debit card swipe fees at 12 cents per transaction does not go far enough, and that banks should honor debit transactions at or close to face value, the same as checks.

NRF today urged Congress not to delay debit card swipe fee reform scheduled to take effect this summer, saying the card industry’s push for postponement could cost retailers and their customers more than $1 billion per month.

NRF welcomed proposed regulations released today by the Federal Reserve intended to result in “reasonable” swipe fees for debit cards, saying a significant reduction in the fees would result in lower costs for merchants and could lead to discounts for their customers.

The National Retail Federation welcomed today’s announcement that the Justice Department has reached a settlement with Visa and MasterCard in a two-year antitrust investigation into practices that have blocked retailers from offering discounts or other incentives to retail customers who pay by cash, check or types of credit cards that cost merchants less to accept than other cards.

The National Retail Federation today said a new Federal Reserve study showing that credit card swipe fees result in a “transfer of income” from low-income individuals to wealthy individuals is evidence of the need for further federal action to control the fees.

The National Retail Federation welcomed today’s signing of financial reform legislation that includes landmark provisions to control the $48 billion in credit and debit card swipe fees paid by retailers and their customers each year, and urged regulators to follow Congress’ intent of achieving major reductions in the fees.

Provisions in the financial services reform bill passed by the Senate today requiring reasonable debit card swipe fees and making it easier for merchants to give discounts to customers who don’t use credit cards represent a major victory for retailers and consumers in their fight against card fees, the National Retail Federation said.

The National Retail Federation welcomed a provision in financial services reform legislation passed by the House today that will help hold down the $20 billion in debit card swipe fees.