New York (CNN Business)Frustrated by other credit paper fees erstwhile you shop?
A brace of bipartisan bills successful Congress purpose to little the swipe fees, besides known arsenic interchange fees, that retailers wage each clip a lawsuit makes a acquisition with their card. The effort is backed by retail giants including Walmart, (WMT) Target (TGT), and Kroger (KR), arsenic good arsenic convenience stores and autarkic grocers.
"Swipe fees for recognition cards are higher successful the United States than anyplace other successful the industrialized satellite — much than 7 times arsenic precocious arsenic Europe," a conjugation of businesses wrote successful a letter to lawmakers past week. "They are an ostentation multiplier."
Interchange fees are applied via a analyzable system, and the charges alteration by merchant, transaction size, the benignant of paper utilized and the banking institution, among different factors. Merchants paid astir $138 cardinal successful processing fees past year, according to the Nilson Report, a work covering the outgo industry.
These fees usually tally betwixt 1% and 3% of a transaction's last price, and stores often walk them connected to customers successful the signifier of higher prices.
Visa (V) and Mastercard (MA) predominate much than 80% of the US recognition paper market. In July, US Sens. Dick Durbin of Illinois and Roger Marshall of Kansas introduced authorities that would let businesses to way galore payments to alternate networks not tally by Visa oregon Mastercard. This week, US Reps. Peter Welch of Vermont and Lance Gooden of Texas projected a akin measure.
Proponents of these bills accidental they would make much contention successful the recognition paper web marketplace and interruption Visa and Mastercard's clasp implicit the industry.
"Credit paper swipe fees inflate the prices that consumers wage for groceries and gas," Durbin said successful July. "Bringing existent contention to recognition paper networks volition assistance trim swipe fees and clasp down costs for Main Street merchants and their customers."
Visa and Mastercard accidental the fees assistance money rewards programs and banking services and assistance little risks for merchants by guaranteeing outgo careless of fraud oregon whether the lawsuit pays their recognition paper bill.
Credit paper companies accidental the authorities would not little prices for consumers and would alternatively pb to unintended consequences specified arsenic less rewards, little entree to recognition and risks to information security.
"This authorities would again boost retailers' bottommost lines astatine the disbursal of mundane Americans — stripping them of their recognition paper rewards and usurping their prime of network," said Jeff Tassey, president of the Electronic Payments Coalition, which represents paper issuers and networks.
Additionally, determination are concerns that recognition cards could go much costly and little attainable for immoderate consumers.
Some recognition unions that service under-banked communities are acrophobic the authorities could bounds customers' entree to credit, said Deshundra Jefferson, a spokesperson for the Credit Union National Association.
CNN Business' Alicia Wallace contributed to this article.