Details
Written by: RJ
WSJ is reporting lawmakers are set to introduce another bill aimed at credit card swipe fees. This is very similar to a bill presented last year that didn’t make it too far. This time around there’s said to be two extra two extra sponsors for the second attempt. One from each party.
The cliff notes is that retailers want the ability to choose which payment networks they use, regardless of card type. Currently a Visa card can only be processed through the Visa payment network. Retailers believe this optionality would create competition and lower swipe fee prices for them/customers.
Thoughts
This sort of puts customers in the middle. It’s believed that everything is 3%+ more expensive as the retailers pass on their cost of doing business to us. It’s also believed that the swipe fees along with interest payments are largely what pays for card rewards. There are caps on swipe fee rates overseas. As a result, their rewards cards are not awesome.
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