Price caps on debit card interchange fees failed to deliver savings to consumers. Now, as working families continue to face high costs of living, some lawmakers are calling on the Federal Reserve to impose similar restrictions on credit card interchange fees.
In a recent report, former Undersecretary of Commerce (and Progressive Policy Institute co-founder) Dr. Robert Shapiro argues that the promise of savings from government-mandated restrictions on credit card interchange fees is wishful thinking.
Shapiro’s study shows that when debit interchange fees were capped after the financial crisis, consumers shifted toward credit cards with higher interchange costs, and merchants did not lower prices; early surveys show that fewer than 2% passed through any savings to consumers.
Please join us for a conversation with Dr. Robert Shapiro, moderated by Paul Weinstein Jr., Senior Fellow at PPI.
Coffee and breakfast will be provided. We hope to see you there!
