The Retail Industry Leaders Association (RILA) reacted to the introduction of legislation in the U.S. House of Representatives to repeal reforms to the fees that merchants pay when a debit card is used to make a purchase.
“Repealing Durbin would once again allow banks and card networks to impose outrageous fees on merchants across the country, while hurting everyone outside Wall Street,” said Austen Jensen, RILA's vice president for government affairs. “RILA and the broader merchant community will fight any effort to repeal these reforms and we urge members of Congress to do the same.”
Swipe fee reform, also known as the Durbin Amendment, passed the Senate in 2010 with 64 votes and was included in the Dodd Frank Financial Reform Law. The reforms require that the fees banks and card networks charge every time a debit card is swiped are "reasonable and proportionate to the cost of processing the transaction.” Prior to the passage of reforms, card networks utilized their overwhelming market power to raise fees at will. Swipe fees are estimated to cost merchants and consumers $50 billion every year.
The bill, H.R. 5465, was introduced today by Rep. Randy Neugebauer (R-TX).
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 more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.