Debit Card Fee Limit Proposal Splits Congress
The fight over interchange fees shows no sign of abatement. In the latest development, a bipartisan group of more than 130 House lawmakers are urging the House-Senate conference committee to drop a measure that would impose limits on interchange fees for debit card transactions. The interchange fees are set bi-annually by Visa and MasterCard and are charged by issuers for every credit or debit card transaction.
In a letter, 71 Democrat and 60 Republican lawmakers said they are concerned that, if it remains in the final version of the legislation, the provision would hurt community banks, credit unions and consumers.
“We strongly urge members of the conference committee and the leadership of our respective parties to object to the Senate language on interchange fees in the final conference report,” said the letter, released by Democratic Representative Debbie Wasserman Schultz of Florida and Republican Kenny Marchant of Texas.
The amendment, included in the Senate version of the financial overhaul legislation, but not in the Congress bill, would require the Federal Reserve to set “reasonable and proportional” limits on the interchange fees for debit cards. Banks and credit unions with $10 billion or less in assets would be exempted from the Fed’s limits.
Card issuers collect more than $40 billion a year from interchange fees, which range between one percent and two percent per credit card transaction, according to the National Retail Federation.
(Via Reuters.com)
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