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.
Accounts of up to $250,000 at credit unions and banks would be permanently insured beyond the current expiration date of 2013, as a result of an amendment approved last week by the House-Senate conference committee on regulatory overhaul.
A coalition of public interest groups and think tanks generally regarded as conservative has come out with a statement urging Congress to reject the so-called Durbin Amendment that would regulate debit card interchange.
Calling it a "special case situation," Senate Majority Whip Richard Durbin said he would work to find a way to exempt state government-issued debit cards used to distribute benefits from his amendments.
As Congress contemplates whether to pass a law regulating debit card interchange, a majority of economists and government officials attending a meeting on the subject agreed that there is no economic basis for the proposed regulatory change.
Senate Majority Whip Richard Durbin is "disappointed," with the arguments made by CUNA and the Independent Community Bankers of America in opposing his amendment to regulate interchange fees.