Facebook, Apple, Microsoft, Google and More Unite to Fight Debit Swipe Fee Caps

TechNet, a group representing executives at leading technology companies, wrote to lawmakers last week to express their support for the bill by Sen. Jon Tester (D-MT) that would delay implementation of the Federal Reserve’s proposed debit interchange caps, according to the Wall Street Journal.
 
Facebook, Apple, Microsoft, Google, Craigslist, Netflix and Yahoo!, along with financial companies such as Visa, are among the participants in the TechNet coalition.  
 
In the letter, TechNet expressed their concern that the new debit rules could have unforeseen downsides, warning interchange limits would “drive networks to cut costs by routing consumers’ financial transactions through cheaper networks regardless of a network’s security or functionality.”
 
“The letter also says the rule will cause networks to shift their focus from data security to cost savings above all else, ‘a situation that could reduce the incentive for ongoing investments in security infrastructure,’” reports the Wall Street Journal. “The group said that more time is needed for consumers, merchants, banks and network operators to measure the impact on ‘cyber security’ and find solutions to any risks.”
 
TechNet sent its letter to senators by whom group members are represented. These lawmakers hail from California, Maine, Massachusetts, New Hampshire and Texas. A copy of the letter was also submitted to Sen. Jay Rockefeller (D-WV), chairman of the Senate Commerce, Science and Transportation Committee.

Related Content

Durbin, Schumer Could Butt Heads Over Bill to Delay Debit Regulation

Never Mind! Chase Reserves Decision to End Debit Rewards

Grocers Descend on Capitol Hill to Offer Their Two Cents: Implement Debit Card Interchange Fee Reform Now

Analysis: Bernanke Says Fed Won’t Meet April Deadline on Interchange Rule

Durbin: Fed’s Debit Plan Does Not Need Further Study

Wells Fargo Ends Debit Rewards Program, Days after Chase

Rep. Westmoreland: “Perils of CFPB with Credit Czar Elizabeth Warren”

The Durbin Chickens Start Coming Home to Roost