This proposed legislation, effectively “Durbin 2.0,” goes beyond its initial intentions by expanding government routing mandates into the credit card market, which would stifle competition, limit consumer choice and undermine the principles upon which our economy thrives. Given these concerns, the IBA urges the Federal Reserve to withdraw the proposed rule on interchange fees and for Congress not to move forward with the Credit Card Competition Act. The IBA calls for a comprehensive analysis of the costs and benefits of any changes to interchange fee regulations, including up-to-date data and consideration of the full range of costs incurred by financial institutions, as well as the impact on consumers, especially the unbanked and underbanked. While the intent behind these proposals is to lower consumer costs, the reality has been far different. The IBA believes that maintaining a reasonable interchange fee structure is essential for the health of our banking system, the security of electronic payments and consumers’ financial well-being. Therefore, the IBA urges the Federal Reserve, regulators and lawmakers to carefully consider the real-world impacts of further reducing interchange fees and to take a balanced approach that supports both financial institutions and their customers. FOOTNOTES 1 https://bit.ly/FEDDurbin 2 https://bit.ly/FTCfraud23 Dax Denton Chief Policy Officer Indiana Bankers Association DDenton@indiana.bank Dax joined the IBA in 2008 and, as of April 2023, also serves as executive director for the Indiana Mortgage Bankers Association. Away from the office, he serves on the Boy Scouts Crossroads of America Council Board. Dax graduated from Indiana University, the IBA Leadership Development Program and the Graduate School of Banking at the University of Wisconsin. Ross Teare Vice President – Government Relations Indiana Bankers Association RTeare@indiana.bank Ross joined the IBA in October 2021. He analyzes issues, reviews legislation, builds relationships with policymakers and enhances IBA’s grassroots advocacy. Ross also heads up the IBA’s BankLEAD internship program and efforts to grow banking programs at Indiana colleges. He graduated from Butler University and the IBA Leadership Development Program. The IBA urges the Federal Reserve to withdraw the proposed rule on interchange fees and for Congress not to move forward with the Credit Card Competition Act. “ CYBER, FRAUD AND PHYSICAL SECURITY CONFERENCE A combination of private sector experts and law enforcement personnel provides you with a unique opportunity to enhance cyber, fraud and physical security practices, foster collaboration and exchange knowledge on effective strategies. Click on the icon in HB Digital or go to indiana.bank/events/cyber-fraud-and-physicalsecurity-conference. AUG. 28-29 Noblesville JULY/AUGUST 2024 45
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