‘When two elephants fight, the grass gets trampled,” goes the African proverb. The same can be said for the epic battle between banks and retailers over interchange fees – what retailers pay to accept credit and debit cards for payment. This battle has resulted in harm to consumers, community banks, and mom-and-pop retailers as Congress injected itself into the fight.
Fortunately, this battle is finally drawing to a close. Last year the payments and retail industries resolved their differences through the court system, negotiating a $7.25 billion settlement to their dispute. All merchants – large and small – are entitled to a sizable sum from this settlement if they accepted credit or debit cards over the last seven years.