Merchants Against Unfair Interchange Practices - Call To Action!

As restauranters, we live or die by our ability to offer credit cards as a payment option to our customers, and for most of us, we accept the costs associated with credit cards as a cost of doing business. However, do you understand HOW your interchange costs and other fess are calculated? The very large companies like Marriott, Hilton and other national chains have Cost Recovery Specialists who comb through their statements every month and are able to save them millions in unauthorized fees. But most of us at FohBoh do not have the finances, knowledge or time to do that.

So how do you first, lend your voice to this petition and secondly, save money by having your credit card statements analyzed to determine how you may permanently save on your current processing costs?

• color:#5E5E5E"">First, join the Merchants Against Unfair Interchange Practices  petition to Congress
• 9.0pt"">Second, find out how you may lower your core processing costs for accepting credit
  cards and directly improve your bottom line.  

The Credit Card Act of 2009 helps consumers from unfair interchange practices of banks and processors, but not merchants. Since the beginning of the use of credit cards, merchants have been victims of an unregulated industry. Merchants in the United States pay some of the highest Interchange fees in the world. This is because other countries have recognized the seriousness of this problem and have implemented laws governing interchange.

It is time for the United States to protect their merchants over the interest of the major banks and processors.

Judiciary Committee Chairman John Conyers (D-MI), Congressman Bill Shuster (R-PA) and Senator Richard Durbin (D-IL) have recognized this issue and have brought bills to Washington that will bring about the needed changes.

 About the Bill:

H.R. 2695, the Credit Card Fair Fee Act of 2009 9.was introduced in the House on June 4, 2009 by Judiciary color:#5E5E5E"">Committee Chairman John Conyers (D-MI), and Congressman Bill Shuster (R-PA). HR.2695 allows restaurants and other retailers to join together to negotiate interchange fees with the credit card companies and their banks. The U.S. Attorney General would have oversight of the negotiations to ensure both parties act in good faith.

 The Companion bill S. 1212, the Credit Card Fair Fee Act of 2009,  was introduced to the Senate on June 9, 2009 by Senator Richard Durbin (D-IL). The prime variation in the two bills is that if negotiations are not successful, S.1212 sends the issue to judges appointed to the federal antitrust  enforcers at the Federal Trade Commission and the Department of Justice. Based upon evidence and witnesses presented by both sides, the three judge panel would choose and set rates and terms that would prevail in a functioning competitive market.

 Why it is important:

"This bill simply enhances competition by allowing merchants to negotiate with the dominate banks on the terms and rates of the fees.”

What others are saying:

“Many of the merchants who get hit by the interchange fees are small businesses that can't

absorb the charges as easily as their larger competitors. For far too long, merchants were locked out of the decision making process between banks and that needs to change. This bill will give merchants a much needed seat at the table to negotiate a better bargain on credit card fees
and charges that will help businesses and consumers alike save”  Jeff Urbanchuk (Shuster), 2009

”This is about fairness, plain and simple. For years, Visa, MasterCard and the big banks have forced higher prices on small businesses and our customers by setting swipe fees behind closed doors with no transparency and no negotiation. The Credit Card Fair Fee Act helps level the playing field.”

Lyle Beckwith, Vice President at the National Association of Convenience Stores,2009

“Main Street businesses and our customers deserve a fair shake, and right now, the credit
card companies aren't giving it to us.” Jennifer Hatcher, Group Vice President at the Food Marketing Institute, 2009

How to Join the Fight:

Information on Merchants Against Unfair Interchange practices is available on the internet, or you may contact me for details.