Position: SUPPORT Status: INTRODUCED

Credit card companies charge merchants every time a credit or debit card is used to pay for a purchase. These hidden fees are called credit card interchange fees. There is no real competition in the credit card business, with Visa and Mastercard controlling 80% of the credit card market. They essentially set the price of interchange fees and are able to charge high rates.

In order for merchants to accept credit cards, they must access that brand's electronic payment system, paying the corresponding fees. Unfortunately, Visa and MasterCard each collectively fix credit card interchange fees with their member banks. As a result, Americans are charged among the highest credit card interchange fees in the world, averaging close to two percent per transaction.

The Credit Card Fair Fee Act of 2009, H.R. 2695 & S. 1212, was introduced in early June for the 111th Congress. This bill would give merchants a "seat at the table" to negotiate directly with credit card associations in an effort to lower interchange rates. The Merchants Payments Coalition ("MPC"), of which CFA is a member, supports this bill.