Advocacy efforts over the prospect of credit card interchange regulation have led to a gridlocked debate between retailers and credit card companies, reports the National Journal. Interchange fees are the costs stores pay to banks when customers use credit cards. According to the article, points supporting retailers include:
- Total costs to accept credit card payments for merchants have risen over time as consumers use cards more.
- Part of these increased costs may be the result how Visa and MasterCard competed to attract and retain bank issuers to offer cards by increasing the number of interchange fee categories and the level of these rates.
- Consumers who do not use credit cards or internet credit card processing may be paying higher prices for goods and services, as merchants pass on their increasing card-acceptance costs to all of their customers.
- Proposals for reducing interchange fees would benefit merchants. Consumers would also benefit if total merchant service companies reduced prices for goods and services, but identifying such savings would be difficult.