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#1498702 - 01/21/11 07:22 PM Debit Card Interchange Fees
Still Smiling Offline
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Has hanyone prepared a comment letter that you would be willing to share on the proposed rules for debit card interchange fees?
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#1498750 - 01/21/11 08:06 PM Re: Debit Card Interchange Fees Still Smiling
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Not that I can share in professional or polite company.
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#1498859 - 01/21/11 09:44 PM Re: Debit Card Interchange Fees Pale Rider
Still Smiling Offline
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I know exactly what you mean! We were wanting to comment but noticed that ABA hasn't published their comments yet and we were looking for a good example.
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#1499059 - 01/24/11 03:00 PM Re: Debit Card Interchange Fees Still Smiling
homestar Offline
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If you do file a comment, be sure to also send a copy to Spencer Bachus as chair of the House Committee on Financial Services.

http://financialservices.house.gov/Default.aspx
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#1499173 - 01/24/11 04:45 PM Re: Debit Card Interchange Fees homestar
John Burnett Offline
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I see that Barney Frank has agreed to work with Republicans on the House Financial Services Committee to seek changes in the Fed's proposed regulation. Has he finally seen the light?
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#1499644 - 01/25/11 02:37 PM Re: Debit Card Interchange Fees John Burnett
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Big Brother knows and that's a...
I would be interested in the letter as well, if anyone has one.
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#1511517 - 02/17/11 06:48 PM Re: Debit Card Interchange Fees J2C
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Card industry looking for fee rule to be delayed (Rewrites with comments from Bair, Bernanke and Raskin)

By Dave Clarke and Maria Aspan

WASHINGTON/NEW YORK, Feb 17 (Reuters) - U.S. banking regulators acknowledged flaws in plans to cut debit card processing fees, adding to pressure on the Federal Reserve to modify how it implements part of the Dodd-Frank financial law.

Sheila Bair, chairman of the Federal Deposit Insurance Corp, cited the likelihood that lower debit transaction fees would force smaller banks to make up for lost revenue with higher account fees for customers.

Card industry looking for fee rule to be delayed (Rewrites with comments from Bair, Bernanke and Raskin)

By Dave Clarke and Maria Aspan

WASHINGTON/NEW YORK, Feb 17 (Reuters) - U.S. banking regulators acknowledged flaws in plans to cut debit card processing fees, adding to pressure on the Federal Reserve to modify how it implements part of the Dodd-Frank financial law.

Sheila Bair, chairman of the Federal Deposit Insurance Corp, cited the likelihood that lower debit transaction fees would force smaller banks to make up for lost revenue with higher account fees for customers.

http://www.reuters.com/article/2011/02/17/financial-regulation-debit-idUSN1713331520110217
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#1511530 - 02/17/11 07:00 PM Re: Debit Card Interchange Fees edAudit
Georgia Plum
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Well, hallelujah praise the Lord. Maybe someone in Washington has some sense after all.

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#1511553 - 02/17/11 07:24 PM Re: Debit Card Interchange Fees
VMack Offline
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Originally Posted By: Georgia Plum
Well, hallelujah praise the Lord. Maybe someone in Washington has some sense after all.


A-men.
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#1511571 - 02/17/11 07:33 PM Re: Debit Card Interchange Fees
edAudit Offline
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Originally Posted By: Georgia Plum
Well, hallelujah praise the Lord. Maybe someone in Washington has some sense after all.


Not so fast could be that there were not enough flaws in the Potential Reg. and they need to add more.
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#1515152 - 02/26/11 03:47 PM Re: Debit Card Interchange Fees edAudit
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Perhaps the most interesting comment letter the Federal Reserve received on Tuesday (the deadline for commenting on the Fed's proposed rule fixing prices for debit-card interchange) was from the Independent Community Bankers of America.

The most provocative feature of the Durbin Amendment (the provision of Dodd-Frank that requires the Fed to rule on the question) is an exemption for small banks -- the Fed interchange price limits are supposed to apply only to banks with assets of at least $10 billion. So those banks were supposed to rejoice when the Fed proposed a hard cap of at most 12 cents per transaction, cutting revenue for debit transactions by more than 75 percent. In theory at least, the small banks would get to keep charging roughly 60 cents per transaction, giving them a major revenue advantage over large banks.

.....The ICBA emphasizes rules in Dodd-Frank and in the recent Justice Department settlement with MasterCard and Visa, both of which broaden the ability of merchants to discriminate. In the end, because debit card transactions are more costly for small banks (many of which use external third-party processors), the ICBA argues that the rule actually will be more costly for its members than for large banks, exactly the opposite of what Congress required in the Durbin Amendment.


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#1517139 - 03/03/11 05:30 PM Re: Debit Card Interchange Fees Pale Rider
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http://www.pymnts.com/toward-reasonable-...0-proposals/?nl

In a paper submitted to the Fed, Martin Bailey and Robert Litan, both with the Brookings Institution, find that the Fed's proposals are unreasonable because they will shift costs to consumers, slow the growth in electronic payments, and make it harder for lower income households to get bank accounts. They advise the Fed to modify its proposals since they are at odds with the law's requirement that the rules be "reasonable."
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#1521699 - 03/15/11 01:31 PM Re: Debit Card Interchange Fees Still Smiling
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#1521925 - 03/15/11 04:59 PM Re: Debit Card Interchange Fees A_G
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From ABA:

SPECIAL EDITION
Sens. Tester, Corker Introduce Bill to Stop Interchange Rule
Sens. Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) today introduced an ABA-backed bill that would delay for two years the Federal Reserve’s debit-card interchange price-control rule. The introduction of the bill -- S. 575, the “Debit Interchange Fee Study Act of 2011” -- came just as approximately 900 bankers -- in town for the ABA Government Relations Summit -- headed to Capitol Hill to lobby for relief from the interchange provision.

Specifically, the Tester-Corker legislation would void the Fed’s proposed rules and extend the deadline for implementing the Dodd-Frank Act’s so-called “Durbin Amendment” for two years after the bill’s enactment.

It also would require the Fed, FDIC, Office of the Comptroller of the Currency and the National Credit Union Administration to jointly submit a report to the Senate Banking Committee and the House Financial Services Committee on the impact of regulating debit interchange transaction fees and related issues not later than one year after bill's enactment.

In conducting the study, the agencies are directed to examine the state of the debit interchange payment system, including the impact of the DFA’s interchange provisions on consumers, businesses that that accept debit cards as payment, and all financial institutions that issue debit cards, including small issuers, and debit card networks.

The agencies also would be required to examine the costs -- such as anti-fraud efforts, data breach, financial liability and payment guarantees -- and benefits of debit card transactions and alternative forms of payment for consumers, merchants, issuers and debit card networks. They must also look at whether it is possible to treat small debit-card issuers differently.

ABA, which for months has been working along with a coalition of bank and credit union trade groups to stop the interchange rule, applauded the introduction of the Tester-Corker bill.

“The legislation introduced by these senators today rightly recognizes that the Fed’s rule will cause significant and immediate harm to community banks, consumers and the broader economy,” said ABA President and CEO Frank Keating. “The clear implication is that more time to study the impact of this provision is definitely warranted, especially considering that the Durbin amendment was adopted at the 11th hour, without hearings, committee action or informed debate.”

Sens. Tom Carper (D-Del.), Pat Roberts (R-Kan.), Chris Coons (D-Del.), Mike Lee (R-Utah), Ben Nelson (D-Neb.), Jon Kyl (R-Ariz.) and Pat Toomey (R-Pa.) are all original co-sponsors. A similar bill is expected to be introduced soon -- perhaps even later today -- in the House.

ABA will soon urge all bank employees to contact their members of Congress to express support for both bills. ABA officials emphasized that the legislation represents an important first step but that in order for the bills to pass, bankers must show an overwhelming amount of support.
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