Credit Card Fees
October 11th 2009 20:17
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Re “Rich and Poor Should Pay Same Price” (Business Day, Oct. 2): Floyd Norris wrote of the debate over the fees that retailers pay when they accept debit and credit cards. Unfortunately, the legislation that Mr. Norris describes would harm consumers, small businesses and small financial institutions like the ones I represent.
As president of the Credit Union National Association, I represent nearly 8,000 credit unions in local communities in every state. Nearly all are concerned about the extremely harmful effects that interchange legislation would have on the services credit unions offer their members.
Credit unions use interchange revenue to finance card programs and to ensure that their members have access to the same services provided by other, much larger financial institutions — and typically more affordable. If interchange revenue were reduced or eliminated, credit unions would be forced into the impossible decision of raising fees for our members — or eliminating our card programs altogether.
In the midst of the financial and economic collapse of Wall Street, credit unions and other small financial institutions continued to provide honest support and services to the hard-working people who entrust us with their savings and depend on us for affordable credit. It would be a pity for Congress to pass legislation that hurts one of the most important building blocks of our economy at a time when we can least afford it.
I urge Congress not to be fooled by the lobbying campaign from giant retailers, and to protect credit unions and the Americans who depend on them.
Dan Mica
Washington, Oct. 6, 2009
From: New York Times
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