On Monday, the National Retail Federation (NRF) urged Visa and Mastercard to cancel credit card swipe fee increases scheduled to take effect this month. In a stand of solidarity with a similar letter from both Republican and Democratic members of Congress, the NRF believes higher fees would add to inflation.
“American consumers are struggling under the worst inflation in four decades and these increases would only make the situation worse,” NRF Vice President for Government Relations, Banking and Financial Services Leon Buck said. “Swipe fees are a percentage of the transaction, so banks and card networks are already receiving an unearned windfall as they piggyback on higher prices. They’re going to see billions of dollars more in revenue this year even if rates stay the same, so an increase would only add insult to injury.”
“Senators and representatives from both sides of the aisle coming together to address this issue shows that Congress recognizes the impact these fees are having on the small businesses and consumers they represent,” Buck said. “These fees drive up prices for consumers and affect shoppers in every congressional district and state in the country. We stand with lawmakers who are willing to take the side of Main Street over Wall Street.”
Read the full NRF press release here.