Finance Space

This week Senate Banking Committee Chairman Chris Dodd (D-CT) unveiled a financial regulation overhaul bill that omits an important issue to convenience and petroleum retailers, consumers and small businesses in general: credit and debit card interchange (or “swipe”) fee reform.

Last year, Dodd announced his intention to draft legislation addressing the country’s outrageous interchange fees. It seemed to many that the broad financial overhaul bill would be a natural home for the swipe fee fix.

Retail groups in Washington, while disappointed that this issue was left out of the legislation, expressed a strong desire to work with Dodd and members of the Senate Banking Committee to address swipe fee reform.

“What we are seeing is merely the first draft of the legislation,” according to Lyle Beckwith, NACS senior vice president of government relations. “This bill is far from complete and we can expect to see more iterations and many amendments offered as it moves through the Senate process. All of this tweaking could allow for swipe fee language to be included.”

“Financial services reform isn’t complete without swipe fee reform,” said Mallory Duncan, general counsel for the National Retail Federation. “Chairman Dodd has acknowledged the impact of these fees on consumers in the past, and we hope to see them addressed in the final version of this legislation.”

Dodd’s legislation faces a tough road ahead — no Republicans are backing the bill yet, and numerous interest groups from the financial services industry are crying foul over provisions that either have been included or excluded. Dodd, however, is confident the bill will pass, although he recognizes some issues remain. “Over the last few months, Banking Committee members have worked together to try and produce a consensus package,” Dodd said. “Together we have made significant progress and resolved many of the items, but a few outstanding issues remain.”

Related posts:

• Democrats in bid to save US financial reform
• Banking Reform Sells Better When “Wall Street” Is Mentioned
• Paterson proposes campaign finance bill
• Democrats Push Ahead on Finance Bill
• Senate takes a stab at financial reform

Tags: credit card, Finance