Credit Card Interchange Fight Looms
Just months after their victory over banks and credit unions on the debit interchange issue retailers are gearing up to fight another battle.
This time they have in their line of fire what they describe as excessive credit card interchange fees.
NAFCU Vice President Brad Thaler said his group plans to emphasize the fraud prevention and other costs that credit unions have to pay as the justification for not limiting interchange fees.
“The fraud prevention costs are well-documented. But there is another component when you are dealing with credit cards. The card issuer has the liability if the cardholder doesn’t pay. At the same time, merchants benefit because they are making a sale to someone who might not otherwise be able to afford it at the moment,” he said.