Retailers Welcome GOP Backing Down On Debit Card Fees Limit
WASHINGTON (AP) – Restaurants, grocers and other businesses are celebrating as House Republicans back off efforts to eliminate the cap on fees that banks can charge retailers when customers use a debit card.
The chairman of the Financial Services Committee, Rep. Jeb Hensarling, had pushed for scrapping the limit as part of his legislation to gut the Dodd-Frank law. Those are the strict financial rules established after the 2008 financial crisis.
Big banks have lobbied strenuously against the cap, arguing that it hurts financial institutions while giving a break to retailers.
But the issue divided congressional Republicans and forced leaders to delay a vote on Hensarling’s bill. Late Wednesday, Hensarling said he would cut the debit-card cap provision from his bill, clearing the way for a House vote next month.