Credit Card Interchange Fees Spark Disputes Among Small Business Merchants

Pittsburgh Tribune-Review (05/27/07) Leonard, Kim
With interchange fees rising, merchants are increasingly putting pressure on state and federal governments to take action on the issue. The Senate Banking, Housing, and Urban Affairs Committee is planning to hold a hearing on interchange practices sometime this year. Meanwhile, the Senate Homeland Security and Government Affairs committee is considering examining the issue as part of a look at alleged abusive practices in the credit card industry. At the state level, legislation has been introduced in nine states to control interchange fees or disclose what the fees are paying for, according to the Merchants Payment Coalition. However, some merchants are not challenging interchange fees because they see them as a necessary business expense. Consumers also appear to be indifferent to the issue of interchange fees. Though a new survey by Javelin Strategy and Research found that most consumers know about interchange fees and believe they affect prices, most say they will not stop using plastic to lower a merchant's costs. (Web Link)