National Restaurant Association Applauds Credit Card Fair Fee Act

The National Restaurant Association today applauded the Credit Card Fair Fee Act, legislation introduced last week by U.S. House Judiciary Committee Chairman John Conyers (D-MI) and Rep. Chris Cannon (R-UT). The bipartisan legislation will allow large and small businesses to negotiate directly with credit card companies in an effort to reduce the artificially high credit card interchange fees.

"Many of our members have expressed concern about the unexplained increases in fees and inability to negotiate a fairer rate with credit card companies. The Credit Card Fair Fee Act is a solution to an issue that poses a burden to small businesses, including restaurants, across the country," said John Gay, senior vice president of government affairs and public policy for the National Restaurant Association.

Interchange fees are meant to cover the cost of processing a credit card transaction and the risk taken by the issuing bank that it will be repaid. However, reports show that the cost of processing is steadily decreasing in the United States, while fees continue to rise. The result appears to be an increase in revenue for the card issuer and a drain on a business's bottom lines. Interchange fees amount to approximately $2 of every $100 spent using credit cards.

Over the last three years, unfair credit card practices, policies and fees have been scrutinized by the public, consumer groups, the Federal Reserve and Congress. Interchange fees have been the subject of hearings three times in recent years under both Republican and Democratic Congresses.

Last July, the House Judiciary Antitrust Task Force Subcommittee conducted a hearing on the lack of competition in the credit card marketplace. The Credit Card Fair Fee Act is a direct outgrowth of the Antitrust Task Force’s bi-partisan examination into the fees, policies, and practices of the credit card industry.

The National Restaurant Association is a member of the Merchants Payments Coalition (MPC), a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit card fees and fighting for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition’s member associations collectively represent about 2.7 million stores with approximately 50 million employees. For further information, please visit www.unfaircreditcardfees.com.

Contact
Name: Sue Hensley
E-mail: media@dineout.org
Web: http://www.restaurant.org
Company: National Restaurant Association
Address: 1200 17th St., NW - 20036 Washington DC
Country: UNITED STATES
Phone: +1 (202)-973-3677
Fax: +1 (202)-973-3961