News Room

FMI Statement on GAO Report About Credit Card Interchange Fees

November 19, 2009
ARLINGTON, VA — November 19, 2009 — The Food Marketing Institute (FMI) issued the following statement from Leslie G. Sarasin, president and chief executive officer, on the report released today by the General Accountability Office (GAO) titled Rising Interchange Fees Have Increased Costs for Merchants, but Options for Reducing Fees Pose Challenges:

“The GAO report confirms that credit card companies are increasing interchange fees, contrary to their claims — a trend they cleverly disguise by charging myriad rates for different industries and transactions.”

Visa now has 60 rate categories and MasterCard has 243 rate categories, the report found, up from only four for each company in 1991.

“The GAO report recognizes that big banks benefit the most from rising interchange fees, while neighborhood supermarkets and other main street businesses struggle with swipe fee increases, forcing them to pass along the costs to consumers.”

“We hope the findings of the GAO report will help Congress better understand the need to act and provide relief to businesses and consumers.”

Food Marketing Institute (FMI) conducts programs in public affairs, food safety, research, education and industry relations on behalf of its nearly 1,250 food retail and wholesale member companies in the United States and around the world. FMI’s U.S. members operate more than 25,000 retail food stores and almost 22,000 pharmacies with a combined annual sales volume of nearly $650 billion.  FMI’s retail membership is composed of large multi-store chains, regional firms and independent operators. Its international membership includes 126 companies from more than 65 countries. FMI’s nearly 330 associate members include the supplier partners of its retail and wholesale members. 

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