Victory for Retailers
Small business wins interchange fee showdown

On June 8th, a high-stakes showdown between the retail industry and the banking industry ended with a vote in the U.S. Senate, and the retailers prevailed.

Senators voted down the “Tester Amendment”, on a 54-45 vote. The amendment needed 60 votes to prevail.
The Tester Amendment was an attempt by the banks and credit card companies to prevent limits on debit card interchange fees (also called swipe fees) from taking effect in July 2011.

As a result of the action, interchange fees on debit card transactions will be capped at about 8-12 cents per transaction, which is 73 percent less than the current average fees. The capped fees could save restaurant owners who accept debit cards thousands of dollars per year.

The National Restaurant Association played a key role in the coalition of retail business groups that defeated this effort, and so did many WRA members.

Thanks in part to WRA members who made calls to their senators and congresspersons, wrote emails and letters, and even traveled to Washington, D.C. to meet with lawmakers in person, small businesses prevailed.

Questions? Contact Ed Lump or Pete Hanson at 800-589-3211