Thursday, July 22, 2010

Obama signs financial reform package that includes retailer's interchange fee victory

<<...>> Retail groups praised Congress for passing and President Obama for signing into law the Wall Street Reform & Consumer Protection Act, which includes a provision to reform credit-card and debit-card interchange fees. The bill includes an amendment sponsored by Senate Dick Durbin that would require the Federal Reserve to set regulations resulting in "reasonable and proportional" swipe fees for debit cards.

The Fed would be required to consider banks' actual costs for processing the transactions and the fact that paper checks drawn on the same accounts are paid at face value. It would also bar the card industry from interfering with merchants who offer a discount or other benefit to customers who pay by cash, check or debit card rather than credit cards, and would allow merchants to set minimum purchase amounts of up to $10 for credit cards.

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