Page 1 - GS241202

December 23, 2024 • Issue 24:12:02

Year in Review 2024

Choice is the name of the game

the major card issuers) enable the credit cards they issue to
be processed over at least two non-affiliated networks, only
one of which can be owned by Visa or Mastercard.

Meanwhile, the states are starting to get into the interchange
battle. A law set to take effect in Illinois next year would
prohibit interchange assessments on tax amounts and gra-
tuities. The pending law, the Interchange Fee Prohibition
Act, is being challenged in court by an assortment of trade
groups – those representing banks and electronic payment
services providers, and even an airline association.

The challenge has the backing of at least one federal regu-
lator: the Office of the Comptroller of the Currency, which
has filed an amicus brief in the case. But this is not going
to be the last word on the matter. Other states, including
By Patti Murphy Florida and Pennsylvania are considering similar laws.

hen it comes to paying for goods and services, As for Senator Durbin, with the Republicans soon control-
choice is the name of the game. Consumers ling both houses of Congress, conventional wisdom would
want to be able to choose which of many pay- have it that any additional legislation involving card inter-
W ment options they use: cards, cash, mobile change is dead in the water.
and digital wallets, their bank accounts, or perhaps with
a payment plan. They also want to choose how they use But it may not be. In a November hearing before the Sen-
those payment methods, for example, whether it's a plastic ate Judiciary Committee, which Sen. Durbin chairs until
card, a card in a digital wallet, a card on file, or tapping the changing of the guard, lawmakers from both sides of
their mobile devices or cards to a POS device. the aisle piled on Visa and Mastercard asserting that some-
thing needs to be done to resolve the ongoing dispute with
Businesses want choices, too. Typically, they want to be able businesses over interchange.
to accept payments however their customers choose to pay.
But perhaps more importantly businesses want to pay as "Visa and Mastercard and the retailers need to sit down
little as possible for accepting payments. And therein lies and work this out," insisted Senator John Kennedy, R-La.
the most contentious issue in the payments space. "Because if you don't, Congress is going to do something."
Interchange remains hot topic

As it has been for the past many years, the topic of inter- Contributed articles inside by:
change was in the news a lot this year. Senator Richard Allen Kopelman .....................................................................................14
Durbin, the Illinois Democrat who authored the "Durbin
Amendment," which caps the interchange the card brands Leanne Lange ........................................................................................18
(and card-issuing banks) can charge for debit card pay- Austin Mac Nab .....................................................................................24
ments, continued his push for "Durbin 2.0."
Paul Clarke ..............................................................................................26
That legislation, the Credit Card Competition Act, would Robert Kraal ............................................................................................28
upend the way card payments get cleared. It proposes that
financial institutions with at least $100 million in assets (all
Continued on page 22