WASHINGTON--(BUSINESS WIRE)--The Merchants Payments Coalition issued the following statement today in response to U.S. District Judge Nicolas Garaufis’ ruling that American Express credit card rules constitute an unlawful restraint on trade:
“Today’s ruling is one step forward to bringing badly-needed competition and transparency to the entire credit card industry. Allowing retailers to ask consumers to use a less expensive card will result in lower prices for consumers and a fairer market for the fees merchants currently pay to accept credit and debit cards. Judge Garaufis got it exactly right that card networks charge merchants inflated prices that result in higher costs for consumers.
“Merchants have been saying this for years. The card companies have the power to manipulate market forces and that they use that power to unlawfully constrain merchants from lowering prices for consumers.
"Merchants across the country are thankful to the U.S. Department of Justice and to the judiciary for recognizing the anti-competitive nature of American Express’ rules and are hopeful that other steps will be taken to stop similar unfair practices of the other card companies who set outrageous fees behind closed doors for their real customers, the banks issuing the cards.
"Technology is such that it costs the card industry very little to process a transaction but soaring swipe fees have twisted the market out of shape. Consumers and merchants are being charged a lot of money for very little service. These costs are a financial drag on commerce of all kinds and detract from the American tradition of free-market competition."
For more information about unfair swipe fees, go to the Merchants Payments Coalition website: http://www.unfaircreditcardfees.com/
The Merchants Payments Coalition is a diverse group of retailers, supermarkets, drug stores, convenience stores, restaurants, fuel stations, on-line merchants and other businesses that fights unfair credit-card fees and advocates for a more competitive and transparent card system that works better for consumers and merchants. The coalition’s member trade associations together represent almost 3 million stores with 50 million employees.