Advertisement

Swipe Fee Regulation under Congressional Assault

March 17, 2011

The Durbin Amendment to the Dodd-Frank financial reform legislation came under intensified attack this week as legislation was introduced in both chambers of Congress that would put the brakes on swipe fee regulation for debit cards. Bills in the House and the Senate propose to delay implementation of the Durbin Amendment to further study is possible effects. A bill introduced in the House by Rep. Shelley Capito (R-W.Va.) would delay the rulemaking process already underway at the Federal Reserve and force higher fees if costs to banks of allowing debit transactions aren’t covered. A Senate bill from Sen. Jon Tester (D-Mont.) would push back the deadline for the Fed rules by two years with a provision for a study of “unintended consequences” to be completed within a year. Under the current Dodd-Frank Act, the final rule is expected in April. The Fed has already made a proposal that would cap debit interchange at $.12 per transaction. “The stakes are simply too high to move forward with this rule without a closer look at the impact on consumers, credit unions, community banks, and the small businesses and jobs they sustain” said Tester, a member of the Senate Banking Committee. “That is why we need to make sure we stop and study these proposed rules before implementing anything.” Merchants shot back, incredulous that lawmakers would side with large banks on the issue. “We are extremely surprised to see a bill introduced that favors Wall Street banks and price-fixing card companies over Main Street merchants and their customers,” said Mallory Duncan, senior vice president and general counsel of the National Retail Federation, a national trade group representing retailers. “Merchants are ready to pass lower swipe fees along to consumers in the form of discounts and other benefits as soon as reform goes into effect in July but we can’t do that if Congress lets bankers stand in the way.”



Advertisement


  • PayItSimple Launches in UK - July 16, 2015
    PayItSimple Launches in UK

    PayItSimple USA, a company that enables consumers to tap the available credit on their credit cards to enable installment payments online, is launching its service in the U.K.

  • Data Breaches: Passwords and Baseball - June 18, 2015
    Data Breaches: Passwords and Baseball

    While the U.S. government continues to assess the damage done by the illegal intrusion of the networks of the Office of Personnel Management, two other hacks uncovered this week show the evolving nature of data breaches and the variety of information hackers are seeking.

  • Former NBA All Star Turns to CNP Fraud - June 1, 2015
    Former NBA All Star Turns to CNP Fraud

    Chris Gatling, a forward who played for eight different teams over an 11-year NBA career that included one All-Star Game appearance, was arrested in Scottsdale, Ariz. on Thursday and charged with fraud, aggravated identity theft and forgery.

Advertisement

 

 

Sign Up Today Free

Receive the twice weekly CNP Report and monthly feature articles providing in-depth examinations of global CNP issues.

Please take a moment and register.
* First Name:

* Last Name:

* Password:

* Confirm Pwd:

* Email:

* Category:

Company:

 
Captcha
Answer:

 

 

CNP Archive

Researching companies or people in the CNP industry? Search our past coverage for targeted news and information.

Search here