ETA Statement by Jason Oxman, Chief Executive Officer, Regarding U.S. District Court Decision to Overturn the Federal Reserve’s Debit Transaction Cap
Today , U.S. District Judge Richard Leon struck down the Federal Reserve’s price caps on debit interchange fees, ruling that the caps allowed financial institutions to recover too many costs. The merchants behind this suit argue that consumers will benefit from the savings they accrue from lower interchange fees with lower retail prices. However, a brief look shows such regulatory measures actually harm consumers, as banks drop services and raise prices while merchants pocket their savings. Since the implementation of Dodd-Frank in 2011, which imposed a 21-cent cap on debit-card transaction fees, consumers have not seen extra savings at the register. While merchants enjoyed an estimated $8 billion in savings from the legislation, those savings are not reflected in the prices they charge consumers.
[divide]UPCOMING ETA EVENTS
International Acquiring Forum
Millennium Gloucester Hotel and Conference Center
London U.K.
September 17 – 19, 2013
2013 Strategic Leadership Forum
Montelucia Resort & Spa
Scottsdale, AZ
October 15 – 17, 2013
2014 ETA Annual Meeting & Expo
April 8-10, 2014
Mandalay Bay
Las Vegas, NV
ABOUT ETA
The Electronic Transactions Association is an international trade association representing more than 500 companies that offer electronic transaction processing products and services. ETA’s mission is to advance the payments industry profession by providing leadership through education, advocacy and the exchange of information.
For more information on ETA, contact Del Baker at [email protected].