April 20, 2017
Rep. Jeb Hensarling announced a draft of the Financial CHOICE Act.
Yesterday, House Financial Services Chairman Jeb Hensarling (R-TX) released a discussion draft of his Financial CHOICE Act, which includes language to repeal debit swipe fee reform. Hensarling introduced similar legislation last Congress and his renewed efforts to repeal debit reform have been endorsed by the credit card and banking industry.
The convenience store industry fought hard to achieve the debit reforms which passed as part of the Dodd-Frank legislation in 2010. The reforms, often referred to as the Durbin Amendment, injected competition into the debit swipe fee market by limiting the fees that Visa and MasterCard can fix on behalf of the largest banks. The reforms are designed to incentivize those banks to compete instead of accepting the price-fixed fees by Visa and MasterCard. The reforms also restored routing competition by requiring there be two unaffiliated routing network options on a debit card. This prevents Visa and MasterCard from blocking competitors from being on debit cards.