IBAT took the community banking message to the Texas Capitol again yesterday to speak out on harmful legislation that would cripple small businesses’ ability to process credit cards from large bank issuers.
At issue was H.B. 4061, a companion to S.B. 2056, which passed out of Senate Committee last week. The companion bills would prohibit credit card issuers from utilizing a standard fee schedule to set interchange prices with merchants. In effect, this would require every merchant to reach a deal to set interchange prices to accept the issuing banks’ cards. Given that customers of big banks can’t even get them on the phone, you’ll pardon us if we’re doubtful that the big banks would take the time to negotiate with small merchants.
“Businesses of all sizes rely on the seamless ability to accept their customers’ payment method of choice,” IBAT President and CEO Christopher Williston said in testimony before the House Committee on Pensions, Investments and Financial Services. “This legislation would put small to medium sized businesses on the outside looking in, with massive disruption to their ability to accept payment for most credit cards,” Williston added.
IBAT has been working closely with stakeholders in the Electronic Payments Coalition through the legislative session to ensure that we stop harmful interchange-related legislation. Please keep a close watch on your inboxes in the days ahead as IBAT may issue a call to action to encourage your voice be added to the opposition of these harmful proposals.
