Big Card Issuers Should Voluntarily Reduce Interchange Rates

The National Restaurant Association has asked Congress to mandate the reduction of credit card interchange fees during the current crisis; writing in Forbes Ron Shevlin of Cornerstone Advisors says Visa, Mastercard and American Express should volunteer to give up their portion of interchange fees; Shevlin estimates eliminating fees could potentially save hundreds of millions in 2020; he also describes a number of other reasons why this could be good for the big card issuers; voluntarily giving up fees reduces the need for Congress to engage in the battle; while the argument that the money will not reach consumers is valid the move would still be a public relations win for the companies; when renewals come up this could help position the companies in a better light and secure deals faster; everyone should be chipping in these days and this is a chance for these companies to do the right thing. Forbes

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