RILA: Visa settlement in N.Z. proves U.S. interchange fee reform possible

Arlington, Va. New Zealand’s Commerce Commission has reached a settlement with Visa regarding interchange fees. The Retail Industry Leaders Association said the agreement will bring greater transparency to Visa consumers and retailers in New Zealand who use and accept debit and credit cards.

The move highlights the need for interchange U.S. reform, RILA said in a statement.

“Regulators around the world have closely scrutinized anti-competitive practices related to interchange fees by Visa, MasterCard and other card associations and have come to the realization that these fees are bad for consumers and retailers,” said John Emling, senior VP for government affairs. “U.S. regulators must follow suit to prevent these credit card giants from continuing to impose soaring costs on retailers small and large.”

U.S. interchange rates among the highest in the world, averaging 2% to 3% of every swipe transaction.