NGA Submits Feedback Stating Rule Undermines Competitors and Raises Prices for Impartial Grocers and Customers
Washington, D.C. – The Nationwide Grocers Affiliation (NGA), the commerce affiliation representing the impartial grocery store trade, right this moment submitted feedback to the Workplace of the Comptroller of the Forex (OCC) opposing its interim remaining rule revising 12 C.F.R. § 7.4002 and the associated interim remaining order in regards to the software of the Illinois Interchange Charge Prohibition Act (IFPA) to nationwide banks.
The OCC rule represents a major departure from longstanding federal banking coverage by explicitly authorizing nationwide banks to obtain interchange charges established by means of third-party preparations quite than by means of competitors amongst banks.
“NGA strongly opposes the OCC’s interim remaining rule, which allows nationwide banks to determine interchange charges by means of third-party preparations,” mentioned Greg Ferrara. NGA president & CEO. “This method undermines competitors and will increase prices for impartial neighborhood grocers and the shoppers they serve.”
In its feedback, NGA outlined issues that the rule will enhance prices for impartial grocers and customers whereas weakening the aggressive market forces which have traditionally ruled fee-setting authority beneath the Nationwide Financial institution Act. Additional, as a result of interchange charges are embedded in almost each card transaction, the OCC’s rule can have far-reaching damaging penalties for neighborhood grocers, customers, and competitors all through {the marketplace}.
“Impartial grocers serve communities in each nook of the nation, and interchange charges are embedded in almost each card transaction,” Ferrara mentioned. “Consequently, the OCC’s interim remaining rule would have far-reaching damaging penalties for neighborhood grocers, customers, and competitors all through {the marketplace}. NGA appreciates President Trump’s help for reducing swipe charges by means of the Credit score Card Competitors Act. Sadly, the OCC’s choice strikes in the other way, reinforcing the market dynamics which have pushed interchange charges greater and elevated prices for companies and customers.”
NGA urges the OCC to withdraw the rule and protect the longstanding precept that fee-setting authority beneath the Nationwide Financial institution Act ought to stay grounded in competitors amongst banks.
NGA submitted feedback to the OCC urging the company to withdraw the proposed rule, warning that it might undermine competitors and enhance prices for retailers and customers.
The feedback will be seen right here.
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In regards to the Nationwide Grocers Affiliation
NGA is the nationwide commerce affiliation representing the retail and wholesale neighborhood grocers that comprise the impartial sector of the meals distribution trade. An impartial retailer is a privately owned or managed meals retail firm working quite a lot of codecs. The impartial grocery sector is accountable for about 1.2 % of the nation’s total economic system and is answerable for producing greater than $250 billion in gross sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members embrace retail and wholesale grocers situated in each congressional district throughout the nation, in addition to state grocers’ associations, producers and repair suppliers. For extra details about NGA, go to www.nationalgrocers.org.
