Retailers Already Opposing Interchange Repeal Posted by Association of Vermont Credit Unions on 11:36 AM

According to CU Journal, the big changes for the CFPB and repeal of Dodd-Frank financial reform law predicted for the new Congress have retailers strongly opposing support by the financial industry to repeal the cap on debit interchange fees.  The cap on "swipe" fees was  part of the Dodd-Frank financial reform law and was intended to be a boon to consumers. But card issuers claim that rather than putting money into  consumer pockets it has been a boon to retailers.

Merchant associations claim that the cap only applies to financial institutions over $10 billion in assets and that banks are still making a triple digit profit off debit card transactions.

Banks and credit unions say the lost revenue hamstrings the types of products they are able to offer customers because they have to make up the revenue in other ways.