The Wall Street Journal recently reported that credit unions, consumers and community banks will foot the bill if Congress decides to put price controls on interchange fees. The article points to 7-Eleven and other national retailers as culprits in forcing "big government down the throats of American consumers.”
"If Congress acts on 7-Eleven's misleading petition to put price controls on interchange fees, consumers will pay the price through the reduction of credit card reward programs such as frequent flier miles, and the possible return of annual fees.” According to the article, credit unions and community banks will pay the price in higher costs that will make it more difficult to offer cards. This could force cardholders to abandon local lending institutions if they want the convenience of credit and debit cards. The article goes on to state that "Contrary to the spin of the 7-Eleven and other big retailers, interchange fees, also called ‘swipe fees,' are only levied on merchants, and none of the major legislation currently before Congress would require retailers to pass on one penny of their resulting savings to consumers."
MasterCard and Visa have come out against 7-Eleven's position on interchange fees. A nationwide credit union Call-to-Action was launched this week.
Credit union employees, volunteers and members are encouraged to visit CUNA’s Grassroots Action Center to conveniently compose and send email messages to Vermont lawmakers in DC.
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