Rather than pass debit interchange savings from the Durbin Amendment on to consumers, gasoline retailers are pocketing the difference, the Electronic Payments Coalition says.
Saying that the debit card swipe fees set by the Federal Reserve were neither reasonable nor proportional, the National Retail Federation and other groups have sued the agency.
Two legislators have announced they will file a bipartisan bill in the House to repeal the Durbin amendment and remove its cap on debit card interchange.
Some industry organizations which fought the passage of the Durbin amendment have moved quickly to applaud the prospect of its repeal.
A spokesman for the Electronic Payments Coalition, a group formed to defend card interchange, predicted that the legislation authorizing a cap on debit card interchange would face strong opposition in this Congress.
The impact of the Federal Reserve's proposed rule on debit interchange could be a "drastic" cut to CU debit card income, according to CUNA CEO Bill Cheney.
A controversial study from researchers affiliated with the Federal Reserve Bank of Boston suggests that lower income consumers who generally use more cash and debit cards subsidize the credit card use and rewards of wealthier consumers.
Vermont might become the first state to enact a law regulating whether and how retailers pay card interchange fees.
Vermont Governor Jim Douglas has the power to make his small state the first in the country to pass a measure that could significantly impact the amount of card interchange earned from card transactions.