Retailers and card issuers are frequently lined up across from each other along the issue of credit and debit card interchange. Retailers generally want card interchange lowered or capped, issuers generally want it left alone. But the issue still sometimes makes strange allies.
The National Black Chamber of Commerce (www.nationalbcc.org), a trade association that has chapters in 41 states and represents 100,000 minority owned small businesses, has come out in favor of not having any government intervention in card interchange.
"Accepting payment cards provides significant benefits to small businesses, including faster check-out times, reduced cash handling and bounced check costs, and increased sales," the Chamber's CEO Henry Alford wrote in a prepared statement. "While we can all appreciate reduced costs, we do not think it is appropriate for one industry segment to ask Congress to intervene at the detriment of another."
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"Government intervention in the free market invariably brings unintended consequences. If the government artificially reduces interchange fees or merchant fees, cardholders will pay the price in the form of higher credit card costs and fewer benefits. The consequence of this proposal would not only harm consumers, but also many businesses that use credit cards to run their business," he added. "Preserving the benefits that electronic payments provide to small businesses and consumers should be a top priority. Therefore, the National Black Chamber of Commerce cannot support measures that seek to shift costs to small businesses and their customers."
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