USA Today reports that “a March poll sponsored by the Merchant Payments Coalition, a group representing retailers, found that 70% of likely voters favor a reduction in swipe fees, once the rule was explained to them. But a survey by Javelin Strategy & Research, a bank consulting firm, found that 60% of consumers don't expect prices to fall if swipe fees are reduced.”
In other words, while consumers don;t have much faith in the banks, they’re not all that wild about retailers, either.
The story makes clear that if swipe fee reform goes through as planned this summer, consumers are likely to see a barrage of credit card promotions, as banks look to move usage away from suddenly less-profitable debit cards. And it also is possible that consumers will see retailers pushing for debit card usage, through discounts, loyalty promotions and other perks and enhanced services.
In other words, while consumers don;t have much faith in the banks, they’re not all that wild about retailers, either.
The story makes clear that if swipe fee reform goes through as planned this summer, consumers are likely to see a barrage of credit card promotions, as banks look to move usage away from suddenly less-profitable debit cards. And it also is possible that consumers will see retailers pushing for debit card usage, through discounts, loyalty promotions and other perks and enhanced services.
- KC's View:
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I’ve always found it hard to believe that market pressures won’t force retailers to lower prices in response to lower swipe fees ... all it takes is one national retailer to begin marketing around such an initiative and it will force everyone else to follow suit. But the survey certainly is right about the fact that consumers will need to be convinced - by credible, transparent and consistent communications efforts.
