Unlikely Small Businesses Would Benefit: “It is unlikely a small business would be aware of a smaller network, and even if it did offer payment on that network, the odds that a bank would issue a card enabled for that exact network are relatively small.”
Questionable Benefits for Consumers: “It is not clear whether retailers would pass interchange savings on to consumers.”
Increased Fraud: Businesses “might face higher incidences of fraud if payment security is weakened.”
Security Impacts: “If cards are effectively required to be interoperable, networks may be less willing to invest as much in secure payment technologies, as part of the benefit would accrue to their competitors.”
Corporate Megastores to Mix Commerce & Banking: “There may be unintended consequences of this bill. For instance, there is nothing stopping the major retailers from creating a payment network…this would tighten links between commerce and banking and potentially lead to conflicts of interest.”
98% of merchants either increased prices or kept them the same.
124% increase in debit fraud and the elimination of debit rewards.
Community banks and credit unions have seen debit interchange losses between 10%-30% from 2011 to 2019.
Businesses with less than $500 million in annual sales would see no benefit and actually be put at a “further competitive disadvantage” against these corporate giants.
Credit and debit card transactions help to propel the Nation’s economy by facilitating commerce.”
Interchange is vital to enabling “banks to protect against fraud, cover the costs of transaction process
