Contrary to the assurances of Illinois Senator Richard Durbin (D), the interchange cap which flows from the amendment that bears his name will reduce credit union income from debit card interchange.
The Durbin Amendment to the Dodd-Frank financial reform act will likely cut credit union debit card income in the short term but may also spur further innovations in the payments industry.
A bipartisan group of 13 senators urged Federal Reserve Chairman Ben Bernanke in a letter sent yesterday to ensure that when the Fed issues regulations on debit interchange fees they don't hurt small financial institutions and consumers.
A Minnesota based national bank has challenged the constitutionality of the law that would, for the first time, regulate debit card interchange.
Illinois senator Richard Durbin, a Democrat, has defended the debit card interchange amendment that bears his name, suggesting that the bank that has brought suit against it in federal court does not really understand it.
The Federal Reserve Board has reached out to credit union trade associations as part of its first steps toward crafting a cap on debit card interchange.
A small surge in the use of cash and the popularity of ATMs, especially fee-free ATMs, may be among the unintended consequences of the financial reform act that President Obama signed into law earlier this year.
Senate Majority Whip Richard Durbin took to the Senate floor this week to criticize credit unions and banks for fee increases since last year's enactment of the CARD Act.
Credit unions won a victory Thursday night when a Senate committee approved an amendment to remove a provision that would limit credit card interchange rates on government transactions.
It's back. Credit unions have another interchange battle on their hands as a Senate panel is trying to limit interchange fees that the government can be charged.