We’ll reap benefits of swipe fee reform

I wanted to respond and set the record straight about swipe fee reform in Washington raised on these pages by the Heartland Institute.

These are the fees credit and debit card companies charge retailers for using the service, and they have grown a whopping 300 percent in less than a decade. The author criticizes Sen. Dick Durbin’s work to bring down these exorbitant fees, contending they will lead to higher interest charges and fewer benefits offered on credit cards.

But I can tell you from personal experience those arguments are off the mark. Sen. Durbin stood up to the powerful banking interests who wanted to delay these important reforms and helped defeat that effort. We’ll all reap the benefits later this summer from his leadership.

The legislation championed by Sen. Durbin last year is a major victory for retailers and consumers by capping the fees financial institutions can charge for using these cards. Retailers can offer discounts to consumers who use a less expensive form of payment, such as cash, and can set minimum purchases for credit card transactions. Those savings will be pumped back into the retail market by hiring new employees and boosting the economy. Retailers account for one of every five jobs in the Chicagoland area alone.

Consumers will realize savings in their purchases through more competitive prices, with more reasonable debit and credit card swipe fees in use. With the economy presenting so many challenges, greater purchasing power and more people at work are great news for all of us.

On behalf of our 23,000 members, their employees and Illinois consumers, I wholeheartedly thank Sen. Durbin for standing with us and saying ‘no’ to unfair fees that make all of us pay more.

David Vite President and CEO, Illinois Retail Merchants Association