Payments community, mark your calendars for Feb. 17. That’s the day panelists will testify before the House Financial Services Committee on the Federal Reserve’s proposal for debit card interchange fees, according to Chairman Rep. Spencer Bachus (R-AL).
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Although we don’t know the specific panelists at this time, Rep. Shelley Caputo (R-WV) will be chairing the meeting.
The Federal Reserve Board staff has proposed two alternatives to debit interchange fee regulation. Both would set a maximum of 12 cents per transaction for debit cards with no apparent distinction between signature and PIN. Under one proposal, there would be a safe harbor of 7 cents, and issuers could make a case for up to 12 cents based on their actual average variable cost of authorization, clearing and settlement. Under the other proposal, issuers would have a cap of 12 cents per transaction. (Read More)
For more details on the Feb. 17 meeting, check out this blog entry from the Electronic Funds Transfer Association.