NRF urges US Congress to not repeal debit card reform

19 Sep '16

2 min read

The biggest retail body in the world, the National Retail Federation (NRF) has urged the US Congress to disallow legislation that would weaken both, repeal the Federal Reserve's cap on debit card swipe fees and also competition. The proposed bill would unleash new, higher, hidden swipe fees that could more than double without competitive routing options.

According to NRF, the Dodd Frank Law set limits on what big banks could charge if they chose not to compete. Repealing the law would allow banks to raise the fees as high as they want, without fear of competition.

A survey conducted for NRF found that 89 per cent of consumers said the reform should remain in place. In addition, 84 per cent said swipe fees should be set on a competitive basis rather than letting credit card companies set price-fixed fees.

“Billions of dollars that retailers have saved under this cap have been passed on to their customers, and the vast majority of consumers surveyed have made it clear that they want those savings to continue,” Mallory Duncan, NRF senior vice president said.

“Repealing this important consumer protection measure would drive up the price of almost everything consumers buy and create an unearned windfall for the nation's largest banks,” he added. (AR)

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