June 8, 2011 (Ames, IA) – The U.S. Senate has voted down an amendment by U.S. Senators Tester and Corker that would have delayed the implementation of the Federal Reserve's debit interchange regulation. If approved, it would have stopped stop the debit interchange rules from becoming effective and required further study leaving the Federal Reserve to write new rules.
The amendment needed 60 votes to pass, but only received 54 (with 45 opposed). Iowa Sens. Tom Harkin and Chuck Grassley voted against the amendment.
Given this outcome, the focus now returns to waiting for the Federal Reserve to issue its final rule, which could be published any time prior to the effective date of July 21, 2011.
“If this rule goes into effect, credit union industry believes debit card costs will rise and retailers will profit,” said Shazia Manus, Greater Iowa president/ceo.
Today, interchange income covers the cost of fraud if a consumer’s debit card is compromised. Currently, retailers are not responsible for costs associated with these breaches, nor most fraud.
Greater Iowa Credit Union is a not-for-profit financial institution with more than 28,000 members and assets of more than $275 million. Greater Iowa has branches in Ames, Des Moines and Denison. For more information, visit www.greateriowacu.org.