Regulation

While hope is rising in some quarters that lawmakers may direct the Federal Reserve Board to delay or avoid implementation of its proposed debit card interchange rates, a large national merchants’ association sees little chance of lawmakers derailing the proposed rules.

The United Arab Emirates is planning a series of enforceable regulations that will put more teeth into prohibitions against merchants assessing surcharges on credit card purchases.

WASHINGTON – Nearly seven months after passing a bill that included a measure to limit interchange fees on debit cards, lawmakers today were expressing buyer’s remorse.

Having successfully nudged lawmakers to reconsider interchange caps, card issuers and payments networks are weighing the ramifications of another, less-discussed part of the Durbin amendment: so-called steering rules.

Decoupled-debit card programs could see a surge of fresh interest from merchants and consumers if the Federal Reserve Board’s new debit-interchange rules go through as proposed, the purveyor of one such alternative payment scheme insists.

Revenues earned by credit unions from debit card interchange is far more than was previously thought – an estimated $2.6 billion for 2010 – according to CUNA, which is preparing testimony for tomorrow’s Congressional hearing on interchange legislation.

WASHINGTON – Federal Reserve Chairman Ben Bernanke expressed doubt this morning on the workability of exemptions for credit unions and small banks from the debit interchange price controls required under the Dodd-Frank Financial Reform Act.

Visa Inc. confirmed Wednesday that it has retained counsel and said it is weighing its next moves in fighting debit interchange regulation, but it stopped short of specifying what strategies it might use in the weeks ahead.

An estimated 440 different collection agencies and creditors were sued between Jan. 16-31, a slight increase from 426 sued in the first half of the month, according to data from U.S. District Courts.

In a warm-up for tomorrow’s Capitol Hill hearing on the Federal Reserve Board’s proposed debit-interchange rules, merchants’ representatives during a press conference today said that unless the rules are left unchanged, merchants might be forced to lay off employees.