Push Grows to Change Proposed Fed Rules on Durbin Interchange Amendment

While industry groups begin to put the finishing touches on their response to the Fed’s NPRM onthe implementation of the Durbin Interchange Amendment (due February 22), Republicans and Democrats alike continue to question the wisdom and effect of a 12 cent cap on debit card interchange rates.

According to Bloomberg News, HFSC Ranking Member Barney Frank (D,MA) recently offered to work with Republicans on the committee who seek to change the Fed’s proposed debit card rate cap. 

It seems that momentum is building for some kind of bipartisan action along these lines in the House.  The House may well use the February 17^th hearing on Debit Card Interchange Fees as a means by which to seek a legislative “fix” to the Fed’s proposed cap.

One way to gauge the potential effectiveness of this effort will be to see the as yet unannounced witness list and to hear the questions members on both sides of the aisle will ask those testifying.

While the Senate took the lead on the interchange rate debate in the 111^th Congress, it is apparent that the House will be doing so in the 112^th.

Push Grows to Change Proposed Fed Rules on Durbin Interchange Amendment