Ranking Member of the House Financial Services Committee and author of last year’s financial regulatory overhaul said last week that he would be willing to work with the Republican majority on changes to the debit card swipe fee provisions that were included in the law.
As the Federal Reserve Bank moves close to issuing a final rule on debit card interchange fees the debate is bubbling back up on Capitol Hill. The proposed rule would cap the fees charged to merchants at twelve cents, the current fee averages about one percent of the purchase price. Banks are outraged at this potential change, which could cost them upwards of $16 billion.
Senator Richard Durbin (D-IL) and Representatives Peter Welch (D-VT) and Bill Shuster (R-PA) are the merchants’ champions on the issue. “Legislative attempts to change the interchange law are premature and have no chance of ever passing Congress,” Max Gleischmn, Durbin’s spokesman, said last week. “The big banks and card companies hate it when they lose, so they are asking to play the game all over again. If some people want to repeal a law that gives billions of dollars per year of relief to small businesses and their customers in order to protect the bottom line of the nation’s biggest banks, that’s a debate we are happy to have.”
At least in the House it looks like this debate will be happening. The House Financial Services Committee will be the battleground and all the action will be happening in the next few months.
NACS will be calling on its’ members once again to educate their Congressmen on how important this reform is to their business and to their customers. The NACS Day on the Hill will be the perfect opportunity to reiterate our message and we want you to come to Washington to make sure your voice is heard.
Here is a quick breakdown of the agenda:
Wednesday, March 9, 2011
- 12:00 - 3:00 pm: Media Training - Space limited and reservation required
- 4:00 - 4:45 pm: NACS Issue Briefing
- 4:45 - 5:30 pm: How to Lobby Congress Briefing - distribution of schedules and coordination of groups
- 6:00 - 6:45 pm: Cocktail Reception
- 6:45 - 8:15 pm: Dinner with Political Speaker
- 8:30 - 10:30 pm: Special Evening Tour of U.S. Capitol Building led by Members of Congress (reservations required)
Thursday, March 10, 2011
- 8:00 - 9:00 am: Breakfast on Capitol Hill
- 9:00 - 5:00 pm: Meetings with Representatives and Senators
- 5:30 - 6:30 pm: NACSPAC Congressional Reception
- 7:00 - 10:00 pm: Dinner/Event to be Determined
Friday, March 11, 2011
- 8:00 - 12:00 pm: Board of Directors' Meeting
For more information and to register go to: nacsonline.com/dayonthehill.
The reforms being made to the debit interchange system are vital for the survival of our industry and the savings they will bring to our customers. Fight to keep swipe fee reform on track and join us in DC.