Store Owner Fights Credit Card Fees
Thousands Sign Nationwide Petition
POSTED: 3:33 pm EDT July 27, 2009
UPDATED: 5:51 pm EDT July 27, 2009
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BOSTON -- A Massachusetts store owner has started a nationwide petition against what's called interchange fees.
Watch ReportNewsCenter 5's David Brown reported that they are unregulated credit cards fees charged to store owners for every credit and debit card transaction. It's a hidden fee that is eventually passed on to the consumer.For 35 years, Dennis Lane has owned a 7-Eleven on Adams Street in Quincy. Lane said credit card companies are taking a big portion from each credit card purchase and that has spurred him into action.Roughly 2 percent of the cost of each purchase is eaten up by the fee.An in-store petition is asking for customers' help. It asks Congress to regulate the interchange fee -- a fee that Lane said has skyrocketed in recent years."We believe that the escalation of fees has been extreme and unreasonable, and we believe as responsible retailers should have an opportunity to negotiate those fees," Lane said.According to the Electronics Payments Coalition, the payments to credit card companies have jumped 137 percent since 2001. In 2004, 7-Elevens paid $40 million to credit card companies for transactions. In 2008, the fee was $160 million.Lane said by regulating the fee, the consumer would be paying less."We could reduce those fees and lower the overall cost of goods -- the cost of doing business -- as a responsible retailer we would pass the savings on to the consumer," Lane said.Customers are eagerly signing up, happy to get rid of extra fees."There are so many of them that are not explained. It just seems senseless. It's like when you are paying points to the bank and just wondering where is that going?" customer John Parsons said.At 7-Eleven stores across the country, more than 1 million people have signed the petition. They hope to have 2 million by Aug. 10. The petitions will be delivered to Congress.
Watch ReportNewsCenter 5's David Brown reported that they are unregulated credit cards fees charged to store owners for every credit and debit card transaction. It's a hidden fee that is eventually passed on to the consumer.For 35 years, Dennis Lane has owned a 7-Eleven on Adams Street in Quincy. Lane said credit card companies are taking a big portion from each credit card purchase and that has spurred him into action.Roughly 2 percent of the cost of each purchase is eaten up by the fee.An in-store petition is asking for customers' help. It asks Congress to regulate the interchange fee -- a fee that Lane said has skyrocketed in recent years."We believe that the escalation of fees has been extreme and unreasonable, and we believe as responsible retailers should have an opportunity to negotiate those fees," Lane said.According to the Electronics Payments Coalition, the payments to credit card companies have jumped 137 percent since 2001. In 2004, 7-Elevens paid $40 million to credit card companies for transactions. In 2008, the fee was $160 million.Lane said by regulating the fee, the consumer would be paying less."We could reduce those fees and lower the overall cost of goods -- the cost of doing business -- as a responsible retailer we would pass the savings on to the consumer," Lane said.Customers are eagerly signing up, happy to get rid of extra fees."There are so many of them that are not explained. It just seems senseless. It's like when you are paying points to the bank and just wondering where is that going?" customer John Parsons said.At 7-Eleven stores across the country, more than 1 million people have signed the petition. They hope to have 2 million by Aug. 10. The petitions will be delivered to Congress. Copyright 2009 by TheBostonChannel.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
