Interchange Fees Catch Heat, And Are Defended, On Capitol Hill

At a Senate Committee on the Judiciary hearing on Wednesday (May 4), interchange fees — levied on merchants as credit cards are swiped, paid out to card-issuing banks — were both vilified and defended. In a hearing that lasted more than two hours, senators grilled a half dozen witnesses from the payment networks and from banking and retail about the positive and negative ripple effects that the fees have on the commerce ecosystem.