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CoverStory

Kantor also urged lawmakers to press the Federal Reserve "Regulations that exclusively focus on card payments, and
to finalize changes to the Durbin Amendment rule set to do not take into account the influx of new players and
ensure merchants can choose between two unaffiliated payment methods in our industry could shift consumer
networks for processing debit card payments. spending to payment options that are less secure and
more expensive, and that do not demonstrate the same
The Fed proposed changes to debit interchange rules in commitment to efficiency, transparency and security that
2021 in response to complaints that card-issuing banks are payment networks like Visa have dedicated themselves to
slow-walking programming changes needed to support for decades," he said.
"PINless debit," an option that supports contactless and
online debit card payments. Merchants say the option "As volumes increase, the risk of fraud increases,"
would support routing these transactions through less Kirkpatrick added. "Mastercard spends billions of dollars
expensive regional EFT networks. to protect consumers against fraud." Kantor, however,
challenged suggestions that regulation will lead to more
The Fed has received over 1,000 comments on the proposed fraud. "Other parts of the world haven't found the parade of
changes, including letters of support from the Department problems they talk about despite regulating interchange,"
of Justice and the Federal Trade Commission. The DOJ and he said.
FTC share jurisdiction for federal antitrust laws; the FTC
is in charge of enforcing the card brands' compliance with Given the political gridlock in Washington, insiders say
the Durbin Amendment. the chances of interchange legislation remains slim. But
more hearings are likely. "This conversation will continue,"
Bankers vehemently oppose the proposed rule change. In Durbin said before adjourning the May 4 hearing.
submitted testimony the ABA-led banking groups went so
far as to call for repeal of the Durbin Amendment. "Study Patti Murphy is senior editor at The Green Sheet and self-described
after study has found that the Durbin Amendment has
failed to lower retail prices as merchants promised," the payments maven of the fourth estate. Follow her on Twitter @GS_
group stated. PayMaven.
They also pointed to evidence that debit interchange
increased for about a third of small merchants after the
debit interchange caps took effect, with merchants selling Snapshot of Upcoming Events
small-ticket items being the hardest hit. "Repealing this
law will prevent these harms from continuing to mount,"
the group insisted.
A taxing question

Durbin's proposal to exempt state and local sales tax
from interchange calculations could prove troublesome
for acquirers and processors."It would prove very
challenging [from a technology perspective] and the June 13 - 15, 2022
costs associated with such a change would ultimately be
born by the citizens of the state," said Scott Talbott, senior Loews Midtown Atlanta
vice president for government relations at the Electronic www.southeastacquirers.com/
Transactions Association.

Efforts by state lawmakers to pass similar legislation have
failed. Earlier this year, for example, Idaho voted down a
law that would require processors to "deduct the amount
of any tax imposed from the calculation of interchange
fees specific to each form of electronic payment transaction
at the time or settlement" or they would have to rebate
an amount equal to the interchange on the tax amount.
Similar legislation has been voted down in Wisconsin,
Colorado, Illinois, Indiana, Tennessee, Virginia and
Mississippi, Talbott said. September 7- 8 2022

Think carefully about regulation Hyatt Regency Huntington Beach
https://westernstatesacquirers.org/
If Congress considers regulating payments, it should take
into consideration all new payment rails, Sheedy stated.

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