Community Bankers Association of Illinois

Senate Votes Against the Delay and Study of Debit Interchange Regulation
June 8, 2011

This afternoon the Senate voted against delaying and studying the harmful Durbin Debit Interchange price fixing regulation. The bipartisan legislation was sponsored by Senators Jon Tester (D-MT) and Bob Corker (R-TN). Senator Kirk voted in favor of the CBAI backed Tester-Corker Amendment and we sincerely thank him for his support for Illinois community banks!

The Tester-Corker Amendment titled Debit Interchange Fee Reform Act of 2011 was offered in response to the passage of Senator Durbin's Debit Interchange Amendment to last years Dodd Frank bill. The Reform Act cited the concerns of the all of the federal banking regulators about the negative impact of debit interchange price fixing on community banks, concluding further study and consideration are needed.

The Reform Act would have -

  • delayed the proposed Fed rule for one year,
  • mandated that a new rule consider all of the costs associated with operating a debit card program,
  • and created a strong oversight regime to help ensure and provide a basis for further legislative action by requiring that community banks are not subject to anticompetitive market forces or discriminatory merchant behavior.

The CBAI and ICBA have worked tirelessly on this issue for many months. We will continue our efforts to ensure the Interchange Rule as implemented by the Federal Reserve minimizes the harmful impact of this legislation on Illinois community banks.

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