North Dakota Bankers Association - link home

About Us Government Relations and Legal Education Business Partners Communications



Financial Trade Groups Dispute Merchant Claims on Interchange Rule Effects

Posted on 5/11/2011

"As the actual representatives of community financial institutions, we question the claim that merchants have no ability or desire to discriminate against our cardholders," ABA, the ICBA, Credit Union National Association, and the National Association of Federal Credit Unions said yesterday in a joint letter to House Financial Services Financial Institutions Subcommittee Chairman Shelley Moore Capito (R-WV).

We were writing in response to a letter to Chairman Capito from the Merchant Payments Coalition last week, which sought to dispute the impact that the debit interchange amendment will have on small financial institutions. Copies of the letter were sent to all House Members and Senators.

The joint letter cited a prominent technology company that recently boasted of its efforts to develop " 'steering' services for merchants..." in order to "...promote the use of certain cards."

"This report supports Federal Reserve Board Chairman Ben Bernanke's testimony before the Senate Banking Committee that the small issuer exemption may not work in the marketplace," the trade groups wrote. "The first step to protecting credit unions and community banks is for Congress to act on legislation to delay the implementation of the Fed's rule, and to study the harmful impact it will have on small financial institutions and the local customers they serve."

Members Only
Calendar of Events

ND Banks Benefit Trust

Office Depot

2019 Bankers Day at the Capitol

2019 Bank Management Conference