Debit/credit card swipe fees are the “invisible” sales tax that all consumers pay when they buy things with their cards. In the 2010 financial overhaul bill the government lowered the fees from an average of 44 cents to between 7 and 12 cents. Before the law changed, the average American household spent $427 a year in swipe fees. But Jon Tester tried to prevent these fees from going down by sponsoring a bill that would delay the new rule.
Tester said he was standing up for rural America and small banks, but small banks were already exempt from the new swipe fees and Montana’s small businesses wanted him to stop. The only other people trying to keep the swipe fee cuts from happening were big banks and major credit card companies. Coincidentally, big banks and credit card companies are some of Jon Tester’s biggest donors. Instead of putting extra money in Montanans’ pockets, Tester was going out of his way to help the guys who finance his campaigns keep some of their massive profits.
“Every Time You Use A Debit Or Credit Card, You Shell Out An Invisible Sales Tax In The Range Of 1% To 3%. That’s How Much Retailers Have To Pay The Banks That Issue The Plastic.” (“In Battle Over ‘Swipe Fees,’ Retailers Make Better Case,” USA Today, 4/5/11)
“In 2009, The Fees Totaled More Than $16 Billion In The United States.” (Ben Weyl, “Higher Debit Card Fees Blocked,” Congressional Quarterly Weekly,” 6/11/11)
- “That’s An Average Of $427 Per Household.” (“In Battle Over ‘Swipe Fees,’ Retailers Make Better Case,” USA Today, 4/5/11)
“Limits On Big Banks’ Debit Card Charges Will Lower Revenue Mainly For The Biggest Banks — Bank Of America, JP Morgan Chase And Wells Fargo, For Example — And The Biggest Credit Card Companies, Visa And Mastercard.” (“Behind The Debit Card Battle,” Chattanooga Times-Free Press, 6/12/11)
The 2010 Financial Overhaul Bill Required The Federal Reserve To Put New Limits On Swipe Fees In Place. “Tester and Corker were looking to reverse the votes of at least a dozen senators who voted for the restrictions when the matter first came up, as an amendment to last year’s overhaul. Senators voted 64-33 to adopt that amendment, which required the Federal Reserve to put the new limits in place. In December, the Fed proposed capping the fees at 12 cents per swipe regardless of the size of the purchase, down from an average of 44 cents.” (Ben Weyl, “Higher Debit Card Fees Blocked,” Congressional Quarterly Weekly,6/11/11)
“The Federal Reserve Has Tentatively Set The Fees At 7 Cents To 12 Cents Per Transaction, Down From The Current Average Of 44 Cents.” (“In Battle Over ‘Swipe Fees,’ Retailers Make Better Case,” USA Today, 4/5/11)
The Senate Rejected Tester’s Measure To Block New Limits On Swipe Fees. “The U.S. Senate on Wednesday rejected a high-profile measure co-sponsored by Montana Sen. Jon Tester to block new limits on the swipe fees that banks and credit card companies charge stores for debit card transactions, clearing the way for the limits to take effect next month.” (Mike Dennison, “Senate Rejects Tester Measure On Swipe Fees,” The Billings Gazette, 6/9/11)
- “Tester, D-Mont., amendment no. 392 that would postpone limits on fees charged to merchants by issuers of debit cards for one year and establish new reporting requirements on implementation of the restrictions. The fee limits were proposed by the Federal Reserve following the 2010 financial regulatory overhaul.” (S. 782, CQ Vote #86: Rejected 54-45: R 35-12; D 19-32; I 0-1, 6/8/11, Tester Voted Yea)
Banks, Facing Billions In Lost Revenue, Are Fighting Back, Supporting A Measure Championed By Tester To Delay Swipe Fee Limit. “Now the banks, facing billions in lost revenue, are fighting back. They are prodding Congress to delay, and ultimately kill, the measure, set to go into effect in July. A two-year delay, championed by Sen. John [sic] Tester, D-Mont., is circulating in the Senate.” (“In Battle Over ‘Swipe Fees,’ Retailers Make Better Case,” USA Today, 4/5/11)
TESTER: “Despite Earning A Majority Of Votes, The Senate Today Missed An Opportunity To Stand Up For Consumers, Small Businesses And Community Banks In Rural America.” (Mike Dennison, “Senate Rejects Tester Measure On Swipe Fees,” The Billings Gazette, 6/9/11)
However, The Rule Doesn’t Apply To Banks With Less Than $10 Billion In Assets, Exempting All But Few Banks In Montana. “The rule also doesn’t apply to banks with less than $10 billion in assets, essentially exempting all but a few banks in Montana.” (Mike Dennison, “Senate Rejects Tester Measure On Swipe Fees,” The Billings Gazette, 6/9/11)
“In Montana, Convenience Stores, Restaurants And Other Retailers Fought The Tester Amendment And Hailed Its Defeat On Wednesday.” (Mike Dennison, “Senate Rejects Tester Measure On Swipe Fees,” The Billings Gazette, 6/9/11)
“Finance/ Credit Companies” Have Contributed $99,100 To Tester’s Campaigns. (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/22/12)
With $71,750 In Contributions, Tester Is The #3 Recipient Of Donations From “Finance/Credit Companies” In The 2012 Cycle. (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/22/12)
- Tester Has Received $43,000 From J.P. Morgan In The 2012 Cycle (Their #6 Senate Recipient). (The Center For Responsive Politics, www.opensecrets.org, Accessed 4/18/12)
- Tester Has Received $33,500 From Visa Inc. In The 2012 Cycle. (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/5/12)
- Tester Has Received $23,500 From Wells Fargo In The 2012 Cycle. (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/5/12)
- Tester Has Received $16,200 From U.S. Bancorp In The 2012 Cycle. . (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/5/12)
- Tester Has Received $12,300 From Goldman Sachs In The 2012 Cycle. . (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/5/12)
Tester Has Raised $396,052 From Lobbyists, Making Him The #1 Recipient Of Lobbyist Money In The 2012 Cycle. (The Center For Responsive Politics, www.opensecrets.org, Accessed 3/1/12)