Department stores face another squeeze. This time, in store credit card revenue

The new federal rule capping credit card late fees at $8 will impact department stores and other retailers. Department stores, like Macy’s and Kohl’s, rely on store-branded credit cards to drive purchases and generate revenue. However, the new rule will make these cards less lucrative, as late fees for customers will be significantly reduced. This change will affect the highly profitable business of making money from credit card swipes and the interest or late fees on unpaid balances. Specialty retailers with store cards, such as Gap, will also feel the impact. Overall, the rule will further shrink the already declining credit card revenue for retailers.