“At a time when consumers and retailers are fighting for their economic survival and just a few days after they paid their taxes, Visa’s interchange fee increases are deplorable. Interchange is, in effect, a hidden tax on every plastic transaction, fixed by the credit card companies and banks in an anti-competitive market.”
“In a truly competitive market, companies offer consumers the best value for their dollar. We see this principle at work every day in the supermarket industry. Consumers deserve the same value when they use their credit card.”
Background
Credit card companies and banks extract an interchange fee averaging about 2 percent on every credit card transaction. The total cost of interchange fees tripled since the beginning of this decade, from $16.6 billion in 2001 to a $48.8 billion in 2008, according to the Merchants Payments Coalition and data from The Nilson Report.
In the end, all consumers pay these fees — whether they pay by plastic, cash or check — because card company rules effectively force retailers to build them into the price of all goods and services.
Food Marketing Institute proudly advocates on behalf of the food retail industry. FMI’s U.S. members operate nearly 40,000 retail food stores and 25,000 pharmacies, representing a combined annual sales volume of almost $770 billion. Through programs in public affairs, food safety, research, education and industry relations, FMI offers resources and provides valuable benefits to more than 1,225 food retail and wholesale member companies in the United States and around the world. FMI membership covers the spectrum of diverse venues where food is sold, including single owner grocery stores, large multi-store supermarket chains and mixed retail stores. For more information, visit www.fmi.org and for information regarding the FMI foundation, visit www.fmifoundation.org.
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