B2B Payments

Analysts Eye Swipe Fee Rules For Commercial Cards

The debate surrounding interchange fees is been burning bright for several years. Most often, however, the discussions focus on the impact of capping these fees on credit and debit card issuers, and how those fees impact the consumer-facing retailers and merchants that use these cards. New analysis is bringing this discussion back to the B2B stage, however, to examine implications of interchange fee legislation on the commercial card industry.

Research and Markets has added a new report that examines the potential of implementing interchange rules for commercial cards.

The research firm announced the new report, “Global Interchange Regulation: Pandora’s Box for Commercial Cards,” on Wednesday (Aug. 26). The report is released at a time when industry experts are zeroing in on the impact of the Durbin Amendment, which regulates the fees that can be charged by credit and debit card issuers in the U.S. Merchants pay these fees for each time a customer pays with one of their cards.

The debate has recently expanded as to whether the Durbin Amendment should also apply to commercial cards. According to Research and Markets, this controversy has heated up in the last year thanks to last year’s policy by European Union officials that extended multilateral interchange fee caps to business cards in addition to consumer cards.

According to Research and Markets, these developments have forced companies and issuers of commercial cards to consider how possible interchange fee limits would affect their operations.

“Regulatory activities in the European Union in late 2014 concerning payment cards were interesting to observe with regard to the potential inclusion of commercial cards in broader interchange cap discussions,” said the report’s co-author Richard Hall in a statement. “The U.S. commercial cards issuing market has quietly watched for clues as to whether the subject of capping interchange for commercial cards will reemerge in the coming years since the potential impacts on issuers' revenues could be significant.”

The analysis includes insight into how interchange fees add to commercial card issuers’ revenue, and how possible caps on those fees might change the financial performance of these companies.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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