Vermont first state to limit credit-card swipe fees
New York City Vermont has become the first state to pass legislation limiting the swipe fee on credit- and debit-card purchases. The move came last Friday, a week after the Senate approved a similar provision as part of the mammoth financial overhaul bill.
The Vermont law targets the fee retailers must pay card issuers and processors each time shoppers swipe a credit- or debit card, which typically ranges from 1% to 2% of the price of the purchase.
The law allows retailers to set a $10 minimum for credit- and debit-card charges and to offer a discount to shoppers who pay with cash starting Jan. 1.
The Vermont law is the second big win for retailers this month on what has long been one of their top political issues. Last week, the Senate approved an amendment sponsored by Sen. Richard J. Durbin (D-Ill.) that included similar provisions. In addition, it directed the Federal Reserve to ensure that the fees are “reasonable and proportional” to the costs incurred by the network that processes the card, typically Visa or MasterCard. The Senate passed the financial overhaul bill that includes the amendment Thursday, and now it must be reconciled with a version passed by the House in December that does not address swipe fees.
RadioShack extends partnership with Lance Armstrong
FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.
DSW sees improved sales, earnings for Q1
COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.
Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.
The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.