Legislation to curb merchant credit fees hits Congress
Two bills, both called the Credit Card Fair Fee Act of 2009, were introduced to Congress this month that would require Visa and MasterCard banks to negotiate about interchange fees that are currently imposed on merchants on a take-it-or-leave-it basis.
The fees, which Visa and MasterCard banks charge merchants every time a credit card is used to pay for a transaction, average about
2 percent per transaction. Many times, retailers pass that fee along to consumers.
Interchange collections hit $48 billion in 2008, up from $16.6 billion in 2001, according to the National Retail Federation.
Interchange received attention in May as Congress considered the Credit Card Accountability, Responsibility and Disclosure Act which was signed into law May 22 by President Obama.
