Wednesday, June 8, 2011
Tester had previously offered amendments to delay the implementation for two years and then for just 15 months. The Senate voted 54 to 45 in favor of a one-year interval. However, this was six votes short of the super majority needed to pass. Thirty-five Democrats and 19 Republicans voted in favor of the delay. Senate Majority Leader Harry Reid, D-Nev., opposed it.
The amendment's fate appears to validate reports that it caused unease among Senate members because it forced legislators to stand either against the financial industry (heavily in favor of postponement) or against consumer and merchant groups (loudly against it).
The Tester vote was watched closely by the payments industry because of the negative impact the amendment could have on bank profits. The Federal Reserve, following the direction given it in the Durbin Amendment to review debit interchange fees and ensure they are "reasonable and proportional," issued a proposed regulation capping debit interchange fees at 12 cents. The law requires the new rule to go into effect on July 21. Industry analysts don't expect dramatic changes to the proposed rule before then.
Banks now charge up to 44 cents per transaction. Such fees accrue up to $1.3 billion a month for the banking and financial services industry, according to Sen. Richard J. Durbin, D-Ill.
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