Good news for small businesses on the horizon: It looks like Rep. Conyers and the House Judiciary committee on Antitrust that he heads up are going to take a closer look at the credit card companies' practices as they relate to small businesses. As I've covered before earlier in the year, this will be the fourth time this year congress has taken an interest in unfair practices by the banking industry. But it's the first time that one has focused specifically on an issue that matters to anyone who has a merchant account, from Costco to the Kwik-E-Mart.
The committee hasn't made this public yet, but I'm hearing that this hearing is going to happen very soon, in July. So when is it? And what's the details? More after the jump...
If you've been following my series this year, you'll know I'm working for a group called the Merchants Payments Coalition. It's a coalition of coalitions made up of various retailers including many small businesses -- gas station owners, convenience stores, restaurants. (Remember, even if it's a chain, it's probably owned by a local franchiser.)
As you might imagine, we're pretty excited about this news. Here's what's likely to go down, as we just posted on our website:
No official announcement has been made, but sources tell the Merchants Payments Coalition (MPC) that the hearing will likely be held on July 19. Witnesses have not been named, but Committee members are expected to use the hearing to examine the impact of interchange fees on consumers and businesses as well as the antitrust law implications of the interchange fee system.
The hearing would be the fourth congressional session this year to examine credit card fees and the first to focus specifically on interchange. Last year, the Senate Judiciary Committee and a House Energy and Commerce Subcommittee held major hearings on whether interchange practices violate federal antitrust laws and the consumer protection impacts of the fees.
If this is an issue that matters to you, by all means don't hesitate to contact your member of congress. If you don't know much about it, we have a page on the site with plenty of information, none of it the banks would want you to know.
Last but not least, a shout-out and big thanks to Rep. Conyers -- our fellow blogger -- for keeping up the pressure on the card industry. And thanks also to fellow Michigander Carl Levin, who started things off in the Senate, and to Chris Dodd who held hearings of his own. If the credit card companies mend their ways, they'll deserve a lot of the credit.