Are Vermont Retailers Minutemen in the Credit Card Revolution?
No state capital is smaller than Montpelier, but the Vermont seat of government looms large in a battle between two industries near and dear to JZMcBride and Associates – retailers and banks.
At stake in the battle of Vermont, arguably, is the future of credit card interchange fees, also known as swipe fees, transaction fees or processing fees.
Action in the Vermont senate last week is deemed in the media to be a victory not only for retailers, but also small businesses generally and even the consumer. The senate voted to approve legislation easing credit card rules for merchants.
The Burlington Free Press reported that the bill specifically would allow merchants to offer a discount to customers who use credit cards that carry a lower processing fee. Notably, merchants pay a higher fee on cards that offer customers rewards for purchases.
The newspaper also said the legislation would allow store owners to set a minimum sales price for customers to use credit cards – addressing merchant concerns that they lose money on smaller purchases and face fines from credit card companies for setting minimum purchase requirements.
Jettisoned from the measure to win votes for passage was a provision that would allow merchants to refuse to accept rewards cards even if they accept other credit cards, the Free Press said.
Vermont Public Radio, quoting bill supporters, said the initiative could make Vermont the first in the nation to regulate the relationship between card companies and retail businesses.
The question is – Will the Vermont senate vote be the start of a national movement, as some supporters suggest?
Sentiments are running high. A lawmaker who sponsored the legislation said the senate outcome represented a “huge victory for small businesses against the goliath MasterCards and Visas of the world and the American Expresses.”
Another outcome, duly noted by the Rutland Herald, is that there could be fewer credit card options for Vermonters in the future.
The legislation moves next to the Vermont house. A nation will be watching.
Tim provides customized promotional programs and strategic counsel on media relations that benefit from his keen journalistic scrutiny and extensive PR experience. Before joining JZMcBride & Associates, Tim was with two Cincinnati and Dayton strategic communications firms where he specialized in media relations and crisis communications.
Each year the Vermont Council on World Affairs hosts well over 100 international visitors coming to the area under the auspices of the International Visitor Leadership Program (IVLP). The IVLP is the US Department of State’s premier professional exchange program bringing emerging and upcoming leaders across all sectors to experience the United States firsthand while completing carefully designed programs that reflect their professional interests and US foreign policy goals. More information on the IVLP: exchanges.state.gov This IVLP group was in Vermont from May 27-June 2, 2010 for a program called, “Eco-Journalism”. These visitors from Uzbekistan all work across all sectors (independent media outlets, NGOs, government) in the field of journalism. Specifically focusing on the environmental issues in Uzbekistan and the larger region. One of our final appointments was with Burlington Free Press Environmental reporter Candace Page. In addition to all of the great information exchanged about Enviro. reportage in VT, it turns out that Candy had actually traveled to Uzbekistan before! For more information on this and upcoming International Visitor Groups, please visit www.vcwa.org
Video Rating: 0 / 5
Related Burlington Free Press Articles
