Credit Card Companies Lobby Congress to Roll Back Reforms
According to the NRF, the proposed limits on the "swipe fees" that Visa (V), MasterCard (MA) and American Express (AXP) can charge retailers for every transaction would save customers and merchants almost $30 billion over two years. Last year's proposal would limit swipe fees to 12 cents per transaction, roughly a 70% reduction from current fees.
Last October, the U.S. Justice Department filed an antitrust lawsuit against American Express, alleging that the financial institution engaged in anticompetitive practices related to swipe fees. The Justice Department also said it reached a proposed settlement with Visa and MasterCard over similar charges.
The House Financial Services Committee's Subcommittee on Financial Institutions held a hearing on Thursday to discuss the regulations.