Limiting debit-card swipe fees no answer
By Jon Tester
U.S. Senator
If Montana's community banks and local credit unions are forced out of business, then small businesses like bars, pubs and restaurants will end up paying the price.
And so will the Montanans who do business there.
That's why I jumped into the debate about whether the government should impose a limit on debit card swipe fees. Like you, I don't believe the government should set prices for Montana's small businesses.
I'm also opposed to bailouts of any kind. I helped write the Credit Card Reform Act. And I got Wall Street banks to pay back the money they took from taxpayers and use it to pay down the national debt.
Montanans know me as the guy looking out for them – and for the future of rural America.
That's why I voted last year against the plan allowing the government to price fix debit card swipe fees. I had serious concerns about its unintended consequences for Montana and other rural states.
The proposed swipe fee limit is below the cost of doing business, which means Montana's community banks and local credit unions won't be able to cover the costs of offering debit cards.
Local banks may have to start charging fees, limiting purchases, getting rid of free checking, or stop offering debit cards altogether.
And if Montana's small banks can't afford to offer debit cards, they won't be able to compete against big national banks – and they could dry up.
The last thing our nation needs is further consolidation of the financial industry.
That's why I introduced a simple bill to stop and study this controversial price-fixing plan. We need to make sure it's fair to Montana's consumers and small businesses, and allows them access to capital.
The debit interchange fee system isn't perfect. But before we rush headlong into government price fixing, we should take a step back and make sure we understand its full impact on the small businesses of rural America.