WASHINGTON – In a letter to lawmakers, more than 760 retail companies, including hundreds of convenience store operators, voiced their opposition to any legislation that would repeal debit swipe fee reform. The letter was sent as discussions on Capitol Hill are ongoing about a financial reform package. 

Last year, House Financial Services Chairman Jeb Hensarling (R-TX) included a repeal of the Durbin Amendment that reformed debit swipe fees in his Financial CHOICE Act. His repeal efforts were endorsed by the major credit card networks and banks. Hensarling has publicly stated that he plans to reintroduce a version of that legislation over the next few weeks, which will look similar to the previous bill. He has not confirmed whether it will include a repeal of the Durbin Amendment.

In their letter to lawmakers, the merchants state, “We are writing to urge you to not bring forth legislation to repeal financial reforms that are critical to U.S. businesses and our customers. The debit card fee and rule reforms prescribed in Section 1075 of the Wall Street Reform and Consumer Protection Act have provided significant relief to Main Street businesses from anti-free market practices employed by global credit and debit card brands.”

This relief would vanish if the Durbin Amendment is repealed because the debit market would return to an anti-competitive, opaque system dominated by Visa, MasterCard and the largest banks.  “Repealing the 2010 law would dismantle the substantial progress debit reforms have made in correcting in part an otherwise non-functioning, and non-transparent card acceptance marketplace in the United States,” stated the merchants.

The retail company letter followed a similar letter sent to the new Congress last week and signed by NACS and 170 national and state merchant groups.
It’s critical that members of Congress continue to hear from businesses in their districts on how a repeal of debit reform would negatively impact their employees and customers. To reach out to your member of Congress, visit the NACS grassroots portal and ask them to oppose any legislation that would repeal the debit reforms we fought so hard to achieve.