A bill currently under consideration by the House of Representatives could reduce the fees that both students and the University indirectly pay for using credit cards, a development that we’d like to see happen.
The Credit Card Interchange Fees Act of 2009 would reduce the swipe fees credit companies charge for paying with credit or debit card — an inevitability in today’s world, but a tough charge to the consumer, who eventually bears a portion of the fee.
Right now, businesses pay one-half to 3 percent of each credit-card purchase directly to the company in these swipe fees. To compensate for the fees, businesses often adjust prices, which affects the consumer. At Penn, it also means that Financial Services bills can currently only be paid with American Express accounts because AMEX charges a lower percentage in fees compared to other companies. Fees vary on the type of card and the category of purchase — meaning that reforms could target certain things that are vital to a student’s existence, like textbooks and on-campus food purchases.
Granted, the net change in prices for bookstore purchases and fees will be small for students. But those extra cents and half-cents pile up quickly when one considers the sheer number of purchases students make each year, and the few extra bucks it puts back in the pockets of students — chump change in the grand scheme of the credit-card industry — would make a difference to students. Analysts give this bill an iffy chance at passage, but we hope its goals are able to be realized.
