Misguided efforts by “big box” merchants seeking to extend debit card interchange price controls to the credit card market jeopardize investments in protections and security that defend cardholders from criminal activity and undermine trust in the banking system, writes ICBA’s Deborah Matthews Phillips in a new blog post.
“Safeguarding the customers that rely on the payments system guardrails that protect them from criminal activity is of paramount importance to our economy. Congress must avoid ill-advised regulations that only benefit “big box” merchant profitability and leave community banks, consumers and small businesses holding the bag,” she writes.
Rising Fraud Costs: Reports of suspicious activity on debit and credit cards have grown 9.26 percent from 2014 to 2021, with every $1 of fraud caught costing financial institutions $3.52.