Here’s a good article from the New York Times titled, “Card Fees Pit Retailers Against Banks“. The article was published two days ago and it summarizes the latest efforts by retailers to lobby for interchange reform.
It is true that legislation could regulate and thus, reduce Interchange costs. However, regulatory action is very untenable and could take years. The banks will be very aggressive in fighting any sort of regulation, having just lost their battle with consumers in the way of Credit Card Accountability Responsibility & Disclosure Act. Moreover, lawmakers will be a bit more reticent in implementing additional bank regulations that further stresses bank profitability, especially after sector weakness and increased regulations from the mortgage meltdown and the CCARD Act.
While there is potential for regulatory relief for merchants, there are a number of things that merchants can do on their own to reduce payment costs. Our Company’s entire business model is centered around helping merchants reduce their payment costs in the current environment.