ICBA - Industry Resources - Payments Resource Center - Visa Modifies Policies on Debit Routing

Credit & Debit Cards

Community banks provide debit and prepaid cards to their customers to execute the exchange of monetary value. Community banks strive to balance the mandate to maintain transparent, safe, sound and profitable payment card programs with the needs of financially varied customer bases.



Congress and the federal agencies must exercise caution in ensuring that efforts to establish and maintain an environment protecting consumers from unfair, deceptive, or abusive acts or practices does not unnecessarily impede community banks’ ability to respond to changing markets and consumer needs. A well-informed consumer has the ability to shop with his or her feet, a free-market factor that benefits community banks that thrive on successful relationship banking.

National interest rates and fee caps would reduce competition as small issuers without scale may exit the business if they cannot compete with larger scale issuers on price alone. Efforts to place caps on rates and fees would also force small issuers to cut off credit to those most in need, and would likely raise the cost of credit to all other borrowers.

Congress and the federal agencies should remain mindful that community bank payment card programs need to be profitable. If this balance is not maintained, community banks will give greater consideration to discontinuing various products, particularly credit cards, which would result in further consolidation of the industry and fewer choices for consumers. Policies that generate more compliance costs for community banks will not benefit consumers.

Payment card system stakeholders – networks, merchants, card issuers and cardholders – are concerned about the growing security risks and the need to move to more sophisticated and secure technology such as chip and PIN. But re-engineering a payments system is not easy as there are many players that need to collaborate, from the card networks and processors to the bank issuers and merchants. ICBA will participate actively in this migration by conveying the community bank perspective to all stakeholders and communicating the implications of this migration to community banks and their customers.

Staff Contact: Viveca Ware

Date Title Source/Publication
11/23/2016 Visa Modifies Policies on Debit Routing NewsWatch Today
11/04/2016 Fed Updates Debit Interchange FAQs NewsWatch Today
10/12/2016 ICBA Backs More Accurate Debit Card Issuer Survey NewsWatch Today
10/19/2015 Industry Letter on Cosponsors for H.R. 2205 Industry Letter to Congress
10/16/2015 Industry Letter on EMV Industry Letter to Congress
10/07/2015 ICBA to Congress: Community Banks Shifting to EMV, but Additional Layers of Security Needed News Release
10/07/2015 Hearing: The EMV Deadline and What It Means for Small Businesses Testimony
09/16/2015 ICBA Statement on Class-Action Certification of Target Lawsuit News Release
08/18/2015 ICBA Statement on Visa-Target Settlement News Release
05/19/2015 Cybersecurity: The Community Bank Perspective Written Statement
05/14/2015 Hearing: Protecting Consumers: Financial Data Security in the Age of Computer Hackers Industry Written Statement
05/01/2015 Joint Letter to House - Data Security Act (H.R. 2205) Industry Letter to Congress
04/15/2015 ICBA Statement on Settlement Between MasterCard and Target News Release
03/13/2015 Submission of Credit Card Agreements Under the Truth in Lending Act (Regulation Z) Letter to Regulators
02/10/2015 ICBA Provides Tips for Consumers to Protect Themselves Against Cyber Crimes News Release
02/04/2015 Cybersecurity: The Community Bank Perspective Testimony
02/03/2015 Industry Letter on Data Security Industry Letter to Congress
01/23/2015 Industry Letter on Data Security Industry Letter to Congress
01/23/2015 What are the Elements of Sound Data Breach Legislation? Industry Written Statement
12/19/2014 Supporting Efforts to Even the Playing Field Between Banks and Merchants When a Merchant Breach Occurs Letter to Regulators
12/18/2014 Community Banks Reissue Nearly 7.5 Million Payment Cards Following Home Depot Data Breach News Release
12/10/2014 Cybersecurity: The Community Bank Perspective Testimony
12/04/2014 Merchant Financial Cyber Partnership Announces Next Steps for Securing the Payments System Joint News Release
11/21/2014 ICBA’s Cam Fine Fires Back, Says Retailers Need to Be Held to Same Standards on Cybersecurity News Release
11/12/2014 Industry Letter on Recent Breaches of Consumer Information Industry Letter to Congress
10/17/2014 ICBA Statement on White House Cybersecurity Initiative News Release
09/09/2014 Recent Retailer Security Breach at Home Depot Letter to Congress
08/13/2014 More Than 575 Million U.S. Payment Cards to Feature Chip Security in 2015 News Release
04/02/2014 Data Breach on the Rise: Protecting Personal Information from Harm Testimony
03/21/2014 Appeals Court Decides Against Merchant Effort to Increase Price Caps Windfall News Release
03/10/2014 Disclosing Credit Scores on Credit Card Statements Letter to Regulators
03/05/2014 Retailer Data Breach: The Community Bank Perspective Testimony
02/19/2014 Community Banks Reissue More Than 4 Million Payment Cards Following Retailer Data Breaches News Release
02/19/2014 ICBA Taking Meaningful Steps to Stronger Payments System CEO Alert
02/04/2014 The National Cybersecurity and Critical Infrastructure Protection Act (H.R. 3696 Letter to Congress
01/31/2014 ICBA Advocates Effective Data-Security Laws NewsWatch Today
01/15/2014 ICBA Posts Video with Tips on Dealing with Retail Security Breaches NewsWatch Today
01/15/2014 ICBA, Bancard Ask Visa, MasterCard for Audited Statement on Breach Response NewsWatch Today
12/20/2013 Fed: Credit, Debit Cards Account for Two-Thirds of Noncash Payments NewsWatch Today
10/03/2013 ICBA Issues Statement on CFPB CARD Act Report News Release
08/01/2013 Building a Small Business Card Portfolio Brick by Brick Bancard Confidential
03/12/2013 ICBA and CPI Card Group Extend Agreement, Providing Debit and Credit Card Manufacturing Services for Community Banks News Release
02/28/2013 ICBA: Survey Finds Community Banks Focused on Reducing Payments Fraud News Release
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