1.66 Million Consumers Agree, Interchange Fees are Unfair 

The Retail Industry Leaders Association (RILA) welcomed 1.66 million customers to the fight against unfair credit card interchange fees and called on Congress to act to reform the broken system.
 
A petition drive among 6,300 7-Eleven franchises, announced today, netted a stunning 1.66 million signatures, from consumers outraged by unfair fees imposed by credit card giants.  Signed petitions are being delivered to Congress today with the message that businesses of all sizes need interchange fee reform.

“The overwhelming response from consumers is yet another sign that the unfair practices associated with interchange fees are unacceptable and that real reforms are necessary,” said RILA Senior Vice President of Government Affairs John Emling. “Credit card giants indiscriminately increase these hidden fees without regard for merchants or consumers.  The result; merchants and consumers face higher costs and credit card companies enjoy higher profits.”

Interchange fees, which are imposed by the card association and issuing banks to process the credit and debit card transactions, have tripled in the United States since 2001 to $48 billion last year and amount to a hidden tax on consumers. These “swipe fees” are charged to every retailer, small or large, for every credit and debit transaction processed; ranging between 2 to 5 percent of every transaction. 

In today’s complex marketplace where business costs are commonly negotiated, interchange rates stand out.  Without real competition in the credit card market, downward cost pressure is nonexistent. Retailers, small and large, are essentially powerless to negotiate, and accordingly, fees have skyrocketed while other transaction costs have decreased, resulting in ever-increasing profits for credit card companies. Interchange rates are particularly harmful to small businesses which often face higher rates than larger businesses.

“Congress must act to reform this broken system and prevent credit card giants and their issuing banks from continuing to impose unjustifiable fees on retailers small and large,” added Emling.  

The Retail Industry Leaders Association (RILA) is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.

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