Industry Analyst Covers “Washington’s Assault on Payments”

Voices opposing the proposed Federal Reserve rules regulating debit interchange continue to grow louder.  Community banks, credit unions, consumer groups, and even Senator Dodd and Representative Frank are concerned that the rules will not actually accomplish their charge and have several unintended consequences.  Industry experts continue to challenge these rules as well.  Take two op-eds by Eric Grover of Intrepid Ventures and Patti Hewitt of Mercator that were recently published in Digital Transactions.
 
Grover expresses concerns that the Fed’s rules could turn payment networks into public utilities that will inevitably lead to higher costs and poorer service for consumers and merchants.  Patti, for her part, believes that while we won’t know the true effects of Durbin for some time, it’s possible the regulation could cause alternative-payments to collapse if they are regulated.
 
We hope this growing chorus of voices is considered by members of the 112th Congress.