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Merchant groups regularly make claims that stretch the truth, using unsound statistical arguments to mislead lawmakers, regulators, and the public about interchange. A closer look at these statistics illuminates their dependence on flawed logic and, in some cases, direct conflict with independent academic research.

Merchant groups regularly make claims that stretch the truth, using unsound statistical arguments to mislead lawmakers, regulators, and the public about interchange. A closer look at these statistics illuminates their dependence on flawed logic and, in some cases, direct conflict with independent academic research.

Merchant groups regularly make claims that stretch the truth, using unsound statistical arguments to mislead lawmakers, regulators, and the public about interchange. A closer look at these statistics illuminates their dependence on flawed logic and, in some cases, direct conflict with independent academic research.

Merchant groups regularly make claims that stretch the truth, using unsound statistical arguments to mislead lawmakers, regulators, and the public about interchange. A closer look at these statistics illuminates their dependence on flawed logic and, in some cases, direct conflict with independent academic research.

Some retail industry groups like to claim that interchange fees are one of the highest costs facing small businesses. This claim, however, is false. The report below analyzes the costs and benefits of credit and debit card acceptance, finding that the benefits of electronic payments clearly outweigh the costs.

Today, the Electronic Payments Coalition (EPC) released its 2022 Q3 Data Dashboard, providing a quarterly update on various data related to the credit and debit card system, including interchange and merchant discount rates, BNPL, electronic payments, and consumer stress. This quarter’s Dashboard features September’s high CPI inflation which was driven primarily by the decline in gas prices.

The EPC has created an explainer handout that includes a general summary of the Credit Card Competition Act and its negative impact on consumers, small businesses, and financial institutions. This legislation would allow big-box retailers–like Walmart and Target–to process credit card transactions based solely on what is cheapest for them without regard to the value that consumers derive from rewards and many other benefits. This would add billions of dollars to the bottom lines of mega-retailers every year while eliminating almost all the funding that goes towards popular credit cards rewards programs, weaking cybersecurity protections, and reducing access to credit. Keep reading below to learn more.