On the same day the MasterCard announced $455 million in first quarter profits, MasterCard CEO Robert Selander criticized business owners who support legislation that would rein in excessive fees charged by the credit card giant.
“The motivation behind this is really to put merchants in a position where they don’t pay their fair share,” said MasterCard CEO Robert W. Selander. “We think that Congress understands that you can’t give anybody a free lunch.” (Chip Brian, Proposed “Swipe Fees” Could Affect Visa Inc. & MasterCard Inc.,” SmartTrend, 5/4/10)
The statement is in reference to amendments introduced Monday by Senator Richard Durbin (D-IL) to reform out-of-control credit card swipe fees. Swipe fees have tripled since 2001, costing American consumers and merchants $48 billion in 2008.
The commonsense amendments to the Restoring American Financial Stability Act of2010would stop credit card networks from imposing anti-competitive restrictions on retailers and ensure that fees charged for debit transactions are reasonable and proportional to the costs incurred in processing the transaction.
Failure to address this issue now will give the credit card industry a green light to continue to raise these rates harming merchants, charities and all other organizations that accept plastic.
“MasterCard made more than $5 million a day in profit and they’re attacking me for trying to keep my business afloat? That’s unbelievable. The effort to rein in credit card swipe fees is about fairness and nothing else. The only ones getting free lunches are MasterCard execs who are taxing American consumers and business owners every time a debit card is used. Last year the credit card companies made more off of my store than I did. Without reform, this year, they will make even more and I will make even less,” said Dennis Lane, a small business owner from Quincy, MA.
Dennis Lane is a single store 7-Eleven Franchise owner. Mr. Lane has owned and operated his store for 36 years. To arrange an interview with Mr. Lane, please contact Brian Dodge at (703) 600-2017.
About Reform Swipe Fees NOW: Reform Swipe Fees NOW is a project by the Retail Industry Leaders Association (RILA). The project unites U.S. business owners, small and large, in a campaign for fair credit card swipe fees.