While most of the credit card debate has focused on aggrieved consumers, there is another party that has beef with banks and credit card companies. Retailers have long chafed at the 1.6 percent interchange fee they must pay the card company every time they a customer makes a purchase with a card. This dispute has long simmered and every now and then it really spikes.

Years ago, there was a memorable picture of a fed-up merchant slashing an American Express (AXP) card with a big knife on the front of big city daily. A recent hearing, noted by Business Week, offered some powerful small business owner testimony. Three separate bills to rein in these fees have been launched in Congress. One from Senator Richard Durbin "would give retailers antitrust protection so they could jointly negotiate lower rates. Also, merchants would have the option of not accepting cards that charge them higher fees."

Banks would be wise to offer some reform proposals themselves, in order to get ahead of the issue. The merchant's lobby is active on this, and banks are seen as vulnerable for obvious reasons. The Merchant Payments Coalition says consumers and merchants spent $48 billion on interchange fees last year, a figure that has tripled since 2001. 

For more:
- here's the Business Week article

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