June 30, 2008
This Action Alert contains important information for you to support the expected upcoming House Judiciary Committee vote soon after the July 4th recess on H.R. 5546, the Credit Card Fair Fee Act. Attached is a list of the House Judiciary Committee members with phone and fax numbers. Congress will be in recess the week of June 30 for the July 4th holiday, an important time to contact their local offices or attend town hall meetings, and return July 7th. If you can’t talk to your Representative directly ask for his/her chief of staff, legislative director or legislative assistant that handles Judiciary issues. Also attached is a sample letter for you to download to put on your letter head and fax to your member of Congress. You may write your own letter by adding the points in the Action Alert below. Let N.G.A. know how your Representative will vote by e-mailing twenning@nationalgrocers.org.
House Judiciary Committee To Vote on Credit Card Fair Fee ActContact Representatives Now to Vote YES on H.R. 5546
The House Judiciary Committee is expected to vote on H.R. 5546, the Credit Card Fair Fee Act after the July 4th Congressional recess, perhaps as soon as July 9 or 16. Now is the time for community focused retail grocers and wholesalers to make their voices heard in support of H.R. 5546. Ask the members of the Committee to vote YES on H.R. 5546.
VISA, MasterCard and the banks are lobbying hard against H.R. 5546. They are saying that retailers support price controls while the credit card companies and their banks have collectively set interchange fees in an anti-competitive and discriminatory fashion. For example, interchange fees are set so that community focused businesses like retail grocers are charged more. The House Judiciary Committee needs to hear from community focused independent and regional companies to know that there is strong support for H.R. 5546. Your grassroots efforts are essential now.
What should grocers do? Call your Representatives on the House Judiciary Committee today and fax them a letter on your company letterhead.
Ask the Representatives to support H.R. 5546 to end the anti-competitive and abusive practices of VISA, MasterCard and the banks in collectively setting the interchange fees, and restore competition. See attached list of the House Judiciary Committee. Tell Representatives on the Committee:
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To vote YES for H.R. 5546 that permits retailers to join together and negotiate for fair and lower cost-based interchange fees, ends abusive rules, and eliminates discrimination among retailers. Urge them to oppose any amendments by credit card companies that would weaken the bill.
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Consumers will benefit because the grocery industry is one of the most competitive in the U.S. Other countries that have taken strong action have reported consumers benefit. For example, the Reserve Bank of Australia in 2005 reported consumers benefited by $580 million annually when action was taken against VISA and MasterCard.
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That VISA, MasterCard and their banks anti-competitively set discriminatory interchange fees that adversely affect small businesses, like community-focused independent grocers.
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VISA and MasterCard control 80 % of the credit card business and exercise anti-competitive market power by collectively setting interchange fees way too high.
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The numerous current credit and debit card interchange fees average 2 % or more on each card transaction and are increasing.
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In 2007, VISA, MasterCard and their issuing banks collected $42 billion in interchange fees, which are borne by all consumers, including those who do not use credit cards and those who are on public assistance.
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Of the $42 billion in interchange fees only 13% is actual processing costs, most of the remaining 87%, subsidizes the credit card companies rewards programs and the 9 billion pieces annually of unsolicited credit card mailings.
For additional information contact Tom Wenning, Senior Vice President and General Counsel at 703-516-0700.
