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US: Will states knockout consumers’ swipe-fees burden?

By  |  July 9, 2013

Banking groups say independent campaigns are pressuring state legislators to ban surcharges on consumers that would make up for swipe-fees. Longstanding battles between retailers and payments conglomerates like Visa, Mastercard and JPMorgan Chase & Co are attempting to hash-out the disagreement over the swipe-fees, which land on the shoulders of retailers every time consumers swipe their credit cards; one proposed solution is to transfer those fees onto the customers that use credit cards. Now, reports say banks are fighting those fees on consumers, a practice allowed by a January class-action settlement. Banks, which rake in about $40 billion a year from swipe-fees, are now fighting the surcharges on a state level. Reports say Utah has already banned the charges, and New Jersey may soon do the same.

Full Content: Bloomberg

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