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Senate Adopts Interchange Amendment |
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Despite success in getting the U.S. Senate to require 60 votes for passage, the Durbin interchange amendment to the financial reform bill was adopted by a 64-33 margin Thursday night. Sponsored by Sen. Richard Durbin (D-IL), the measure gives the Federal Reserve authority to regulate interchange fees on debit transactions, using a "reasonable and proportional" standard that gives the Fed plenty of room for interpretation.
The amendment also allows retailers to use discounts to steer consumers to networks charging lower fees, to establish mimimums and maximums for credit card purchases, and to offer cash discounts.
If the Senate, as appears likely, passes the financial reform measure, it will have to be reconciled with a House version that does not include the Durbin provision.
ETA Chief Executive Officer Carla Balakgie said, in a statement , that the association and its members were "disappointed" by the vote and "very concerned about the impact it will have on many types of businesses in the electronic payments chain."
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