WASHINGTON - (04/20/06) The Federal Reserve will notintervene in the escalating battle over interchange fees betweenthe credit card associations and merchants, a top Fed official saidhere Wednesday. In fact, the Central Bank says it doesnteven have the power to intervene and set rates, as some groups havesuggested, according to Stuart Weiner, a top payments systemofficial at the Kansas City Fed. The Federal Reserve doesnot currently have the authority to regulate credit card and debitcard interchange fees, said Weiner during CUNAsannual Payments System Conference. The Fed was responding torequests by consumer groups and members of Congress that it use itsauthority over electronic payments to set and regulate interchangefees, an increasingly acrimonious process between Visa USA andMasterCard International, which control the payments system, andthe millions of merchants that pay fees on customer transactions.The merchants have filed several antitrust suits against the twocard companies, which are dominated by the big banks, claiming,among other things, that the two use their market clout to fix theinterchange fees schedule. Getting squeezed in the conflict by thetwo commercial giants are credit unions, observers at theconference said. At stake is no small prize: $30 billion ininterchange revenue a year. Some lawmakers had suggested that theFed step in and settle the dispute between the card companies andmerchants by regulating interchange fees, like they recently did inAustralia.
-
At a time of mild or nonexistent loan growth, middle-market borrowers in the Lone Star State are providing a boost to Fifth Third Bancorp and Huntington Bancshares.
1h ago -
New details have emerged about the negotiations that culminated in Capital One's blockbuster $35 billion agreement to acquire Discover. At one point last December, the two parties broke off discussions, according to a securities filing.
1h ago -
According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
2h ago -
The Alabama regional lender says it expects expenses to taper off this year and anticipates challenged loans will gradually rise to historically average levels.
2h ago -
Truist Financial's top executive leadership team announces departures; First Horizon's chief credit officer is retiring; Ferry teams with Highnote to roll out a new Visa-branded payroll card; and more in the weekly banking news roundup.
3h ago -
The Dallas-based regional bank tapped a client for its co-pilot capabilities, where employees can message a bot instead of a human to get tech assistance.
3h ago