|
NEWS RELEASE 2008
ABA Media Contact: Peter Garuccio
(202) 663-5452
E-mail: pgarucci@aba.com
ABA STATEMENT ON THE CREDIT CARD FAIR FEE ACT
by Edward L. Yingling, ABA president and CEO
"ABA strongly opposes the interchange legislation introduced today by Rep. John Conyers and Rep. Chris Cannon, the Credit Card Fair Fee Act of 2008 (H.R. 5546). By creating an impractical federal bureaucracy, this legislation inappropriately puts the government in the role of setting prices in the private marketplace, undercutting a pricing system that currently benefits consumers, businesses and the broader economy. The result will be less competition, fewer choices and ultimately higher prices for consumers, as is always the case when government tries to fix prices.
"This is an enormous issue for banks of all sizes. From the largest global financial institutions to the smallest community banks throughout the country, interchange fees compensate for taking on the extensive infrastructure costs required to support our card payments system, as well as the risk of non-payment, while providing an adequate return on investment. They make it possible for banks to offer consumers better services, more competitive choices, and lower prices. The legislation introduced today would take away these consumer benefits.
"By accepting cards for payment, retailers get faster, guaranteed payments, enhanced security and protection against fraud, greater convenience, and increased sales. It's a shame that they are using this legislation to try to insert government in the "price control" business. In the end, it is consumers who will lose. And that's a deal Congress should take a pass on."
###
The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry's $12.7 trillion in assets and employ over 2 million men and women.
To see other industry statements on this legislation please go to http://www.electronicpaymentscoalition.org/
| 
