Lower Prices for Consumers after Debit Reform, Vows Head of 7-Eleven’s Franchise Coalition

July 11, 2011

No worries if you missed your chance yesterday for a free slurpee drink at 7-Eleven in honor of 7/11. More savings may soon be in store for 7-Eleven patrons, says Bruce Maples. The Chairman of the National Coalition of Associations of 7-Eleven Franchisees in an exclusive interview for PYMNTS.com reacts to the Federal Reserve’s new debit rules and explains why lower swipe fees will drive down product prices.  

PYMNTS.com: How has the National Coalition of Associations of 7-Eleven Franchisees (NCASEF) been involved in the debate over debit interchange fees?

BRUCE MAPLES: NCASEF first got involved in 2009, when franchisees across the country asked customers and employees to sign a “Stop Unfair Credit Card Fees” petition. In September, 2009, approximately 40 7-Eleven franchisees delivered some 1.6 million signatures to Congress, probably the largest number of signatures ever collected on a public policy issue. Since then, NCASEF has publically supported Debit Card Swipe Fee reform, and our franchisee members have visited their Congressional representatives numerous times.

PYMNTS.com: How will debit interchange reform impact 7-Eleven franchises in particular?

MAPLES: The cost for a debit card transaction for the average store will decrease by almost half. The reform will save each franchisee in the country almost 50% of the cost of a debit transaction, which ultimately will be passed on to the customer, in an effort to be more competitive, or used by the franchisee to grow their business or hire new employees.

PYMNTS.com: How do you think this legislation will affect security, risk management and overall safety and soundness of debit payments?

MAPLES: I don’t think any of these things should be affected. We all know that paying by check is more costly than paying by debit card, yet there is little or no cost to the consumer or the retailer if the consumer pays by check. Debit and credit card fees have simply spiraled out of control as debit transactions have replaced checks and now outnumber credit card transactions in our stores.

PYMNTS.com: In your view, how do swipe fees impact small businesses in particular?

MAPLES: It is simply a fact that lower merchant costs will lead to lower consumer prices. Most enterprising storeowners will apply the swipe fee savings to lowering product costs in an effort to be even more competitive in the marketplace.

Lower swipe fees enable us to give our customers the best cost of goods possible, and to grow our businesses by adding employees. Unregulated swipe fees eat away at our revenue and prohibit us from hiring more employees and becoming more involved with the communities we serve.

Unregulated, debit swipe fees would continue to grow and continue to eat into the storeowner’s profits, because we cannot do without debit card transactions. This action by Congress and the Federal Reserve, while not quite the level of change we had hoped for, at least puts a cap on what banks may charge and lets them know that retailers, and the public, are watching.

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Bruce Maples—Bio

Bruce Maples is Chairman of the National Coalition of Associations of 7-Eleven Franchisees, a professional trade group that represents the owners of more than 5,000 franchised 7-Eleven stores across the country. Mr. Maples, who most recently served as a vice chairman of the National Coalition, has been a 7-Eleven franchisee since 1988 and an active National Coalition Board member since 1989. He is also president of the Tucson Franchise Owner’s Association. Previously, Mr. Maples served six years as Southwest Regional Chairman of the National Coalition, five years as a 7-Eleven National Advisory Council member, and as Chairman of the Arizona Food Marketing Alliance.


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