Judge Rejects Visa/Mastercard Proposed Settlement on Swipe Fees On Tuesday, June 25, a federal judge issued an order rejecting a proposed class-action settlement over Visa and Mastercard credit card “swipe” fees. During a June 13 hearing on preliminary approval of the proposed settlement, US District Judge Margo Brodie said she was unlikely to sign off, citing a number of concerns after multiple merchant trade associations said it would not provide sufficient relief. On June 25, Brodie issued a written order saying “the court finds that it is not likely to grant final approval to the settlement and accordingly denies plaintiff’s motion for preliminary settlement approval.” Despite years of litigation, the four basis point reduction would not come close to addressing the fact that the average swipe fee rate has grown two dozen basis points, from 2.02%, since 2010. Credit and debit card swipe fees soared to a record $172.05 billion in 2023, up from $160.7 billion in 2022, according to the Nilson Report. They are most merchants’ highest operating cost after labor and are too much to absorb, driving up prices paid by the average family by over $1,100 a year. ABA Voices Opposition to Bill That Would Debit Swipe Fee Reduction On June 24, as a member of the Merchants Payments Coalition, the American Booksellers Association joined more than 200 state and national organizations representing consumers and merchants in calling on the Senate to reject S. 4570 — a bill that would delay the Federal Reserve’s proposal to reduce how much big banks are allowed to charge to process debit card transactions. “Every day of further delay in the Fed’s consideration of its proposed rule means another day in which large card-issuing banks are deducting significantly more money out of debit transactions than is reasonable, proportional, or allowable under the law Congress passed,” the groups said. “That is why financial industry trade associations are seeking to delay the Fed as long as possible from taking action to update its 2011 regulation — delay preserves what for them is an enormously lucrative status quo.” You can read the full letter on BookWeb. Illinois Bans Swipe Fees on Sales Tax Recently, Illinois Gov. J.B. Pritzker signed a state budget that places a ban on swipe fees on sales tax and there is pending legislation to do the same in Pennsylvania. It is hoped that Illinois’ new law, as well as the Pennsylvania bill, will generate momentum for the Credit Card Competition Act, federal legislation that’s been sponsored by Senators Richard Durbin (D-IL) and Roger Marshall (R-KS). Both have said they want to attach their bill to must-pass legislation this session, as reported by Politico. Right to Read Handbook Just a reminder, The ABA Right to Read Handbook: A Reader's Guide to Fighting Book Bans is available for pre-order on Ingram’s ipage. The Handbook, which will be published September 16 in time for Banned Books Week, is geared to consumers and will provide a comprehensive guide to resisting the epidemic of book censorship through local organizing and engaged citizens.
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