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Special Alert: Financial Reform Legislation Passage Major Victory for NATSO Members Senate approval of sweeping financial reform legislation this afternoon marks a major victory for NATSO members and the truckstop and travel plaza industry by implementing new rules governing debit card interchange, or swipe fees, and reining in commodities market speculation. |
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The legislation includes two top NATSO priorities. Language sponsored by Sen. Richard Durbin (D-IL) requires the Federal Reserve to implement rules governing debit card interchange, or "swipe" fees, ensuring that the fees bear a reasonable relationship to the cost of the transaction. Durbin's amendment would also permit retailers to set minimum purchase levels (not to exceed $10) for accepting credit or debit cards. Passage of the swipe fee provision marks a major victory for retailers in their multi-year campaign to restore competitive balance between retailers and financial institutions, which impose these fees without any negotiation. Banks and credit card companies lobbied furiously to have this provision removed, yet the significant amount of grassroots calls to Members of Congress enabled this language to remain in the final bill. This victory is a major step forward for retailers of all industries. The bill also includes reforms designed to rein in excessive commodities market speculation, which played a large role in the sharp increases in oil prices during the summer of 2008. The provision, sponsored by Sen. Blanche Lincoln (D-AR), would place position limits on speculative trading, but include exemptions for those trading for commercial purposes. The legislation would also require financial institutions to separate their commodity derivatives trading practices in a separate account, separated from federally insured deposits. NATSO would like to thank all members for their active engagement on these issues, not just over the course of this legislation, but for the past few years, as Congress has debated these issues in various forms. President Obama is expected to sign the bill into law next week. |
