Repeal of rule on debit fees sought
WASHINGTON — Two lawmakers aim to repeal a Federal Reserve rule capping debit-card swipe fees.
Representatives Jason Chaffetz, a Utah Republican, and Bill Owens, a New York Democrat, planned to introduce a measure to repeal the rule, formulated under the 2010 Dodd-Frank Act. The Fed on Oct. 1 implemented the rule, which limits fees card networks charge merchants to 21 cents per transaction — about half the average retailers paid before.
"Congress must repeal this egregious provision that increases the costs of doing business on everyone," Chaffetz said.
The caps may cut as much as $8 billion in revenue from the largest US banks, according to data compiled by Bloomberg Government. In response, Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., and SunTrust Banks Inc. have been rolling out new charges for debit-card users.
Payment networks like Visa Inc. are forecasting slower growth under the new rules, which give retailers a choice of at least two unaffiliated networks when they process transactions.
That change may create more competition for the networks, which had been able to negotiate exclusive deals.
"For members of Congress today to do the bidding of the country’s biggest banks and attempt to repeal these reforms is an affront to merchants and their customers," said Mallory Duncan, general counsel for the National Retail Federation.