Three in Four Americans Support Credit Card Fair Fee Act

Tag : Transparent Cable

National Poll Finds Voters Want To Rein In Hidden Credit Card FeesThat Inflate Prices; Legislation Would End Credit Card Secret PriceFixing
WASHINGTON, July 11 /PRNewswire-USNewswire/ -- Better than three in four (77%) voters favor the "Credit Card FairFee Act," bi-partisan legislation that would empower retailers tonegotiate credit card fees directly with the credit card industryas a means to cut interchange fees, according to a poll released bythe Merchants Payments Coalition (MPC). The poll can be found on www.UnfairCreditCardFees.com .
According to the survey, public sentiment that something needs tobe done about the credit card industry is at an all-time high.Concerns about credit card industry fees, policies, and practicestouch hot buttons across party lines: identical 51% majorities ofRepublicans and Democrats alike say they "strongly" support passageof the Credit Card Fair Fee Act.
Consumers are three times as likely to say credit card companiesdon't do business the right way compared to cable companies and sixtimes as likely to say that when compared to phone companies. Inparticular, nearly two in three (65%) say credit card companiesdon't share their business values.
Credit card fees known as interchange have skyrocketed on food andgasoline in recent years; they cost Americans $42 billion lastyear. Revenue that goes to the credit card industry on motor fuelsalone has risen steeply in the last year alone, closely followingthe accelerating price of gasoline.
Interchange fees amount to approximately $2 of every $100 spentusing credit cards. These fees inflate the cost of nearlyeverything consumers buy at retail whether or not they use plastic,cash, check, or food stamps. In 2008, the average American familywill pay upwards of $427 in hidden credit card interchange fees.
Currently, credit card interchange rates are set in secret, hiddenfrom view and exclude merchants from the negotiating process.Raising interchange fees is how Visa and MasterCard encourage banksto issue more credit and debit cards - as long as rising rates arekept top secret, consumers have no way of knowing the extra coststhey are paying through higher prices. The Credit Card Fair Fee Actwould introduce market transparency and open negotiations into theprocess.
About the survey
Penn, Schoen, and Berland LLC conducted telephone interviews with605 likely voters nationally June 19, 2008 on behalf ofUnfairCreditCardFees.com. The margin of error for national votersis +/- 3.98 at the 95% confidence level and larger for subgroups.
The full results of the poll can be found at www.unfaircreditcardfees.com .
About UnfairCreditCardFees.com/Merchants Payments Coalition
The Merchants Payments Coalition (MPC), UnfairCreditCardFees.com,is a group of retailers, supermarkets, drug stores, conveniencestores, fuel stations, on-line merchants and other businesses whoare fighting against unfair credit card fees and fighting for amore competitive and transparent card system that works better forconsumers and merchants alike. The coalition's member associationscollectively represent about 2.7 million stores with approximately50 million employees. For further information, please visit www.unfaircreditcardfees.com .
SOURCE Merchants Payments Coalition