The U.S. Senate voted to include swipe fee reform in the Restoring American Financial Stability Act of 2010 through an amendment introduced by Sen. Richard Durbin. Specifically, the measure is expected to ensure that debit card transactions are reasonable and proportional to the cost of processing the transaction.
“Tonight, the Senate stood up to the credit card companies and big banks and stood strong for Main Street businesses and our customers. Swipe fees have spiraled out of control in recent years, and this amendment is necessary to rein in these excessive fees and ensure that Main Street receives a fair shake. These fees are harmful across the board -from large businesses to small retailers to American consumers,” The Merchants Payments Coalition, representing 2.7 million U.S. businesses, noted in a statement.
The amendment is expected to enhance transparency and help protect businesses and customers alike from hidden fees.
“Now that the Senate has acted in such a strong and unambiguous way, business owners across the country hope that Congress will continue moving forward with this measure to bring fairness to credit and debit card swipe fees-and that it eventually reaches President Obama’s desk to become law,” noted The Merchants Payment Coalition.
The Merchants Payments Coalition is a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit card fees and fighting for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition’s member associations collectively represent about 2.7 million stores with approximately 50 million employees.