ARLINGTON, Va., Nov. 1, 2011 /PRNewswire-USNewswire/ -- The Retail Industry Leaders Association (RILA) issued the following statement in response to Bank of America's decision to abandon its plan to charge new fees on debit card users.
"Today's news is proof-positive that consumers remain swipe fee reforms biggest winners. Bank of America and its big bank peers are no longer free to fleece merchants and consumers at will. This outcome is just what consumers deserve, what reform advocates predicted and what we will fight to extend to the credit card market," said Katherine Lugar, executive vice president of public affairs.
The action by Bank of America follows decisions by competitors to drop customer trials of the new fees. SunTrust Banks Inc. and Regions Financial Corp. also said they will stop charging customers for debit-card transactions.
RILA has continued to lead the efforts to reform debit card swipe fees, which was signed into law in July 2010, to rein in out of control fees imposed on merchants and customers by Visa, MasterCard and the big banks. These fees, which are centrally set by Visa and MasterCard, have exploded in recent years and cost merchants nearly $20 billion each year and translate to higher prices for shoppers.
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
SOURCE Retail Industry Leaders Association