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Senate - Co-sponsor Credit Card Fair Fee Act
Senate Majority Whip Richard Durbin (D-IL) has introduced the Credit Card Fair Fee Act of 2009, S.1212. This legislation would provide limited antitrust immunity for retailers of all sizes to negotiate across the table from Visa and MasterCard and card-issuing banks. S.1212 is similar to the Credit Card Fair Fee Act of 2008.
Currently, Visa and MasterCard control roughly 80% of the payments card market. They set interchange rates and the banks that issue their cards all charge the same set of fees even though they are supposed to be competitors. The Credit Card Fair Fee Act of 2009 would give retailers an opportunity to negotiate these rates, and would help restore competition to this broken market. We strongly encourage you to contact your Senators and ask them to co-sponsor S.1212.
| Sample Letter for Campaign |
Subject: Co-Sponsor S. 1212 the Credit Card Fair Fee Act
Dear [ Decision Maker ] ,
I am writing to ask you to co-sponsor legislation that would give retailers an opportunity to negotiate the only expense we have no ability to control in our business: credit card interchange fees. The Credit Card Fair Fee Act of 2009 (S.1212), introduced by Senate Majority Whip Richard Durbin (D-IL), would give retailers a vehicle to address the anticompetitive setting of credit card interchange fees by Visa and MasterCard.
Credit card giants Visa and MasterCard account for over 80% of the payments card market allowing them to collectively set companies should be able to make a profit for providing this convenient service, but the rates and terms of card acceptance should be fair and reasonable, which they are not in the current environment. These fees have increased at out of control levels - they have tripled from $16 billion in 2001 to $48 billion in 2008 - making it nearly impossible for my business to absorb the cost of accepting plastic as the number of electronic payment transactions continues to rise.
The Credit Card Fair Fee Act of 2009, S.1212, will provide transparency in the payments card industry and restore competition to the interchange fee setting process. I strongly encourage you to support this legislation to help restore balance to this broken market that is harming both retailers and consumers.
Sincerely,
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