A bill could be ready as early as this week intended to delay or even drop altogether the Federal Reserve’s proposed rules for debit card interchange fees, sources tell the New York Post.
The Post reports that sources say Sen. Jon Tester (D-Mont.), Sen. Bob Corker (R-Tenn.) and House Rep. Shelley Moore Capito (R-WV) are among those at the forefront of efforts to deter the new swipe fee regulations.
“Senator Corker doesn’t believe the federal government should be telling private companies what they can charge for goods and services,” said Laura Lefler Herzog, a spokeswoman for Corker, according to the Post. “The Durbin amendment was rushed through and not fully thought-out, and the result is a piece of legislation that will have numerous unintended consequences. We’re working with others to determine the best approach to address this issue.”
However, Reuters states that House Financial Services Chairman Spencer Bachus said on March 7 that House Republicans will not try to delay or alter debit regulation unless the Senate supports changing the law.
“The debit card fee provision was added to the Dodd-Frank financial reform law by the Senate, and the Senate must act first and take ‘ownership’ of the issue before the House acts, Bachus told the Institute of International Bankers conference,” reported Reuters.
Financial services representatives have been lobbying lawmakers to halt the Fed’s proposed rules, which could result in billions of lost revenue for banks. The New York Posts states that banks earn approximately $15 billion a year from interchange fees, which they say is used to prevent fraud.
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