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— prepared remarks from Raj Date, special advisor to the Secretary of the Treasury for the Consumer Financial Protection Bureau, at the American Banker’s Regulatory Symposium
When retailers and restaurants offer freebies, the point is to draw attention—not controversy. The only reason to protest 7-Eleven for giving out free Slurpees or Haagen-Dazs for dishing out free ice cream cones might be that the complimentary serving sizes are too small. But what do you expect when you’re paying $0? Now, though, a Texas-based pizza chain is drawing heat over its upcoming giveaway—in which pizza is free only to customers who order in Spanish.
Banks, the thinking goes, have never met a fee they didn’t like. Yet one credit card charge that has been standard for years—the “foreign transaction” or “foreign currency” fee, which tacks on an extra 3% or so to every hotel stay, meal, or tchotchke purchased outside the U.S.—is slowly but surely being dropped by more and more card issuers. Why?
