US retail compliance changes would cap card processing fees in New Hampshire
February 02, 2012
The New Hampshire House is weighing proposed U.S. retail legislation
that would limit credit and debit card fees, according to the New Hampshire Business Review.
The U.S. point of sale legislation
would affect the interchange fee charged to a retailer's bank by the financial institution of the customer making a payment using plastic. House Bill 1319 would limit the fee, which is usually passed on as a deduction from the sale, to 1 percent for state-charted banks.
Credit card companies have spoken out against the proposal, along with industry groups such as the New Hampshire Bankers Association (NHBA). Christiana Thornton, NHBA president, claimed the bill would "undermine the free market" and "create an un-level playing field," according to the news source.
However, retailers have lauded the idea - especially those in sectors where profit margins are particularly tight, such as grocery and gas sales.
Convenience Store News online notes that the bill was introduced shortly after 5 million retailers filed suit against credit card providers and financial institutions over the 2 percent interchange fees they levy against merchants.