Merchants Must Wait For Fee Regulation
By Steven Gibbs
February 26, 2010
While change has come in the form of regulation for consumers via the Credit CARD Act, when it comes to merchants it is a completely different story as it now looks as they will have to wait much longer in hopes of seeing change. This is because as it stands now the chairman of the House Financial Services Committee, Barney Frank, has stated that he will not seek the regulation of interchange fees in 2010.
When it comes to the increases of fees many retailers are trying to find ways to keep the cost from being pushed on the consumers, especially in a time when many Americans are trying to cut cost. Within the past months we have seen and heard many stories of businesses both large and small incentive using cash instead of plastic. We have also seen some national retailers go as far as stop using some of the newest payment terminals available in efforts to show their objection to the increase of fees.
While retailers are not looking to pass the cost on, experts have predicted that the consumer could still be charged more in the long run if the fees are every regulated. As credit card issuers use these fees to pay for things such as reward programs among other things, a cap or freeze on these charges would once again give issuers another reason to raise fees.