Friday, May 14, 2010

Credit Cards – update on the Durbin legislation $COF $V $MA $BAC $JPM $DFS

Senator Durbin’s proposed amendment (SA 3932) to the financial reform bill designed to protect merchants from card fees and rules could go to vote as early as today. While we’re not in a position to predict the outcome, we discuss the key elements of the amendment and the implications for the industry below. Our sense is that should the amendment go through, it would be very difficult to implement and disruptive to card commerce, but manageable in terms of financial impact for the processing vendors. We continue to believe interchange is a business-to-business debate outside the scope of regulation, supported by inconclusive findings on the benefit of card regulation in the GAO report and Australia.

Payment Processing

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