-
Executives from Wal-Mart, 7-Eleven and McDonald's are raising concerns that the new debit-fee regulations they fought for are unlikely to boost their bottom lines.
November 8 -
Although the central bank agreed to raise the cap on debit interchange fees to 21 cents, plus extra for fraud costs, bankers said it would gut profits and hurt consumers. Retailers, meanwhile, accused the Fed of giving into pressure from the financial services industry, and hinted they may sue over the rule.
June 29
Despite new limits on debit card interchange fees, the price of Slurpees has stubbornly remained the same, according to a survey completed by the payments industry's lobbying group.
The Electronic Payments Coalition released data on Thursday finding that some merchants have not lowered their prices since Oct. 1, when federal caps on debit interchange fees went into effect.
Those findings were unsurprising given their source. The EPC, which represents financial institutions, vehemently opposed the interchange fee caps that were required by the so-called Durbin amendment to the Dodd-Frank law.
Retailers backed the swipe fee caps, and some said that interchange regulation would result in lower prices for consumers. But the EPC said its research has not found evidence of that.
The payments group says that 16 out of the 21 retailers it visited this fall either raised prices or kept them the same since Oct. 1, and that on average customers paid 1.7% more for goods in that time.
The EPC collected the data during 84 shopping trips at 21 stores across the country. Its representatives bought the same items during four different trips to each store, before and after the Oct. 1 fee-cap implementation date.
The group highlighted its findings at 7-Eleven Inc. and other vocal supporters of
The group also found that prices for items at a Wal-Mart in Boston increased by $1.07, or 3%, during that period, and that prices at a Walgreens in Little Rock, Ark., rose 73 cents, or 2.9%.
