Jun 09 2011

Shelby Supports Bipartisan Amendment on Interchange Fees

U.S. Senator Richard Shelby, ranking Republican on the Senate Committee on Banking, Housing and Urban Affairs, today announced his support for a bipartisan amendment introduced by Senators Tester (D-MT) and Corker (R-TN) which calls for further study of the debit interchange market prior to implementation of rules. The Tester/Corker amendment will allow for the necessary examination of potential costs to consumers, card issuers, payment card networks and others involved in debit card transactions. Shelby issued the following statement:

“I strongly support the Tester/Corker legislation.  Even though it does not eliminate the price controls established by the Durbin Amendment, it is a step in the right direction.  I firmly opposed the Durbin Amendment to the Dodd-Frank Act because I do not believe that regulators should set prices.  Price controls violate the fundamental principles of free markets.  The Tester/Corker legislation will help alleviate the problems caused by the Durbin Amendment by requiring the Federal Reserve Board to consider all of the costs incurred in providing debit cards.   In the future, I hope Congress will reconsider the Durbin Amendment and eliminate all price controls.  Furthermore, we must continue to thoroughly examine all aspects of Dodd-Frank that produce similar adverse consequences for our economy and seek to eliminate them where possible.”