Change Nearing on Interchange Fees for Businesses
By Steven Gibbs
May 20, 2010
When it comes to interchange fees also known as swipe fees, it looks like businesses may soon get the changes they have been fighting so hard to get. While some have been putting the measure off for months and in some occasions until next year, a few have recently added it to amendments in the Wall Street Reform Bill that is currently pending in Congress.
When it comes to the two amendments each would have a major impact and both are what business owners have been looking to have established for months now. The first change requires the fee that is incurred by business to be proportional to the cost that was incurred by the processor. This fee must be "reasonable" and will be able to be determined by the Federal Reserve. Secondly, business will be able to offer customers discounts that pay with a debit or credit card that carries a lower transaction cost.
As for the amendments, these changes were recently voted on earlier this month by the state of Vermont and passed. While there was a little different by allowing business owners to announce a minimum amount that consumers must meet on purchases in order to pay with their credit cards, it essentially helps business owners at the end of the day. In addition to that; these amendments also gives many business owners the ability to help keep prices low as well as stay in business all at the same time.