WASHINGTON - Today at 10:00 Eastern time, Doug Kantor, counsel for NACS and the Merchants Payments Coalition, will urge Congress to push forward the Federal Reserve??s proposed rules on swipe fees.
On December 16, 2010, the Federal Reserve issued a proposed rule, as directed by Congress in the financial services reform bill, to issue rules to ensure that debit swipe fees are reasonable and proportional to the processing costs incurred. The Federal Reserve also asked for public comments to the rule, which are expected to be finalized on April 21 and implemented by July 21.
Today??s House Subcommittee on Financial Institutions and Consumer Credit hearing: "Understanding the Federal Reserve??s Proposed Rule on Interchange Fees: Implications and Consequences of the Durbin Amendment," will be broadcast live via the subcommittee??s website.
Along with Kantor, David Seltzer, vice president and treasurer at 7-Eleven Inc., will testify on behalf of retailers.
Other witnesses are:
- The Honorable Sarah Bloom Raskin, governor of the Federal Reserve Board
- Gus Prentzas, Pavilion Florals
- Frank Michael, president and CEO, Allied Credit Union; on behalf of the Credit Union National Association
- David Kemper, chairman, president and CEO, Commerce Bank; on behalf of the American Bankers Association and the Consumer Bankers Association
- Josh Floum, general counsel, Visa
"The Durbin amendment, which became law last year as part of the Dodd-Frank Wall
Street Reform Act represents a dramatic improvement over the centralized price-fixing among competing banks that has characterized the debit card swipe fee market to date. The Federal Reserve??s proposed rules to implement the amendment have the potential to move us significantly in the direction of the MPC??s mission of a more competitive and transparent card system.
"In my testimony today, I would like to cover a few areas: first, the background on clearance and fees associated with checks and debit cards; second, the problems with debit card swipe fees for businesses and consumers; third, how the Durbin amendment addresses these problems and fosters competition; fourth, how the amendment and the Fed??s rule will level the playing field for small and large banks; and fifth, I will address some of the arguments being thrown around in this debate that are not supported by the facts," notes Kantor.
Be sure to watch, and if your representative sits on the panel, be sure he/she knows how important protecting the swipe fee reform is to you, your business and the convenience and fuel retailing industry.
Subcommittee members are:
Republicans
Shelley Moore Capito, WV, Chairman
Kenny Marchant, TX, Vice Chairman
Edward Royce, CA
Donald Manzullo, IL
Walter Jones, NC
Jeb Hensarling, TX
Patrick T. McHenry, NC
Thaddeus McCotter, MI
Kevin McCarthy, CA
Stevan Pearce, NM
Lynn Westmoreland, GA
Blaine Luetkemeyer, MO
Bill Huizenga, MI
Sean P. Duffy, WI
Jim Renacci, OH
Robert J. Dold, IL
Francisco R. Canseco, TX
Democrats
Carolyn Maloney, NY Ranking Member
Luis Gutierrez, IL
Melvin Watt, NC
Gary Ackerman, NY
Rubén Hinojosa, TX
Carolyn McCarthy, NY
Joe Baca, CA
Brad Miller, NC
David Scott, GA
Nydia Velázquez, NY
Gregory Meeks, NY
Stephen Lynch, MA
John Carney, DE