Consumer Discount and Fee Transparency Amendment

The Consumer Discount and Fee Transparency amendment to H.R. 627: Card Holders' Bill of Rights offered by Sens. Richard Durbin (D-IL) and Kit Bond (R-MO) has been met with fierce lobbying pressure by the payment and industry and merchant groups alike.

As the name implies, the Cardholders' Bill of Rights focuses mainly on legislation surrounding the relationship between issuing banks and cardholders. The amendment offered by Durbin and Bond digs deeper into the bankcard circle by proposing changes to the way merchants are able to handle transactions, specifically regarding lower fee debit and credit cards. Additionally, the amendment would bring more Federal oversight to the payments industry through the Federal Reserve Board's publishing of interchange rates, fees and the rules surrounding them.

Lobbying pressure from both sides of the debate has been mounting. The NACS and the Merchant Payments Coalition have sent a letter to members of the Senate urging support for the Consumer Discount and Fee Transparency Amendment. The Letter from merchant groups has been met with a similar letter of opposition from pro-payment industry advocates such as the American Bankers Association.

For a small business owner, time is money and there never seems to be enough. The complexities surrounding bankcard processing keep many merchants focused on getting the cheapest merchant account for their individual account. They seldom have the time to devote to politics surrounding the bankcard industry, let alone activism for the cause.

If this sounds like you, the Consumer Discount and Fee Transparency amendment should be the one exception deserving of your valuable time. This amendment is a crucial first step to reforming the bankcard industry. The issues surrounding the legislation are complex, but being aware of them and perhaps doing your part to support them will only serve to benefit yourself and your fellow business owner.

Take a look at the Merchant Payments Coalition‘s web site and also browse the results from a Google search on the Consumer Discount and Fee Transparency amendment.

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