Since last year when Rep. Jeb Hensarling, the chairman of the House Financial Services Committee introduced the “Choice Act 2.0,” which aims to repeal much of Dodd-Frank, the payments industry took notice. Included is the repeal of transaction routing requirements and card interchange caps. After the election or Donald Trump, the chances of the Choice Act being enacted increased significantly. But as the hype of the election begins to recede, there are some questions being raised about the desire of Congress to stir up the vicious battle between banks and retailers again. As Inside Sources reported:
“The majority of members don’t want to have to choose between their banks and retailers,” Austen Jensen, vice-president for government affairs at the Retail Industry Leaders Association said. “And just because it’s coming early in the term doesn’t mean the merchant community will forget about it in 2018.”
As lobbying picked up steam after the election, retailers have also highlighted the danger this fight poses to the rest of the Republican agenda, Jensen said. Republicans have plans for legislation on health care, corporate taxation and many other issues. Why jump into a battle with an uncertain outcome that is sure to alienate at least one powerful constituency?
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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