WASHINGTON – Three key senators yesterday asked for a federal study into the structure of credit card interchange fees, in hopes of settling the ongoing battle between merchant and banks and credit unions.
The senators, Tom Harkin, D-Iowa, Olympia J. Snowe, R-Maine, and Benjamin L. Cardin, D-Md., requested that the Government Accountability Office conduct a study to determine whether fees are properly disclosed, how the fees are set and the level of competition in the marketplace.
“This multi-billion dollar fee is blamed for higher grocery prices and credited for subsidizing popular cash-back and rewards cards,” Senator Harkin said. “A GAO study will help us to gather unbiased information on these fees so that we can help the average consumers who are in the middle of this tug of war.”
“While the credit card companies assert that they are helping consumers purchase goods and services, merchants, many of which are small businesses, say the interchange fees charged are too high, not set competitively, and eat into already slim profit margins,” said Senator Snowe, Ranking Member of the Senate Small Business and Entrepreneurship Committee.
