Financial institutions and retailers are revisiting a disagreement over limits on credit card swipe fees, Reuters reports.
The Dodd-Frank Act, which became law in 2010, established regulations within the financial services industry. One of those regulations was a limit on how much banks and credit card companies could charge retailers for credit card processing, or swipe fees, Reuters says.
According to Reuters, the Trump administration has said it will “ease financial regulations” by “overhauling” Dodd-Frank, and lobbying groups for financial institutions are asking that swipe fee limits be removed as part of changes to the law.
Big-box retailers like Walmart, Home Depot and Best Buy are “vocal opponents of the (credit) card companies,” Reuters says.
Organizations are also lobbying on behalf of retailers to keep the swipe fee limits in place.
“Our argument is, look at what you are doing to Main Street retailers if you repeal (the limits),” says Hannah Walker, director of government relations for a group representing grocers, in the Reuters article. “It would hurt our businesses, increase costs to consumers and cost jobs.”