Retailers back swipe fee limit

The National Retail Federation (NRF) has been actively campaigning to keep federal caps on debit card swipe fees, and now its constituents are speaking out.



A letter signed by more than 120 retailers and other businesses was sent to the House Financial Services Committee on Tuesday, July 12 as members prepared for a hearing on a discussion draft of the Financial CHOICE Act recently released by Chairman Jeb Hensarling, R-Texas. The letter asks that language that would repeal the Federal Reserve’s cap on debit card swipe fees be removed from the draft legislation.



The letter also opposes standalone legislation sponsored by Financial Institutions and Consumer Credit Subcommittee Chairman Randy Neugebauer, also R-Texas, which would repeal the cap.



“In an age where electronic payments have become virtually ubiquitous, very few businesses can choose not to accept credit and debit cards and still remain competitive,” states the letter. “This dynamic has enabled global card brands to leverage a business model whereby they can change the rules of card acceptance at any moment. In many instances, these rule changes constitute an enormous free market intrusion and overstep by limiting the flexibility of card acceptors to make decisions about how to best run their businesses and serve their customers.”



Signatories include Best Buy, CVS Health, The Home Depot, J.C. Penney, Kohl’s, The Kroger Co., Lowe’s, Nordstrom, QVC, Target and Walmart.