Jefferson City News

Congressman Blaine Luetkemeyer has introduced the Secure Payments Act of 2024, which aims to direct the Federal Reserve Board of Governors to conduct a thorough economic analysis of its proposed changes to Regulation II before finalizing the rule. Luetkemeyer emphasized the importance of understanding the impact on consumers, particularly regarding access to affordable debit accounts and the primary beneficiary of the interchange cap.

Luetkemeyer expressed his concerns about the current state of Regulation II, stating, "Since its adoption, Reg II has proven to be a failure for everyday people." He highlighted studies from the GAO and the Federal Reserve that showed a decrease in access to free checking accounts for low-income families and an increase in the cost of banking services. He also pointed out that the biggest beneficiaries of Reg II are the world's largest retailers.

Various industry leaders have voiced their support for the Secure Payments Act and the need for a comprehensive analysis of the proposed changes to Regulation II. Rob Nichols, President and CEO of the American Bankers Association, stated that the Fed's proposal could have severe consequences for banks and their customers, undermining financial inclusion efforts.

Lindsey Johnson, President and CEO of the Consumer Bankers Association, commended Luetkemeyer for introducing the legislation, emphasizing the potential harm to consumers if the proposed regulation is implemented without a full understanding of its impact.

The Independent Community Bankers of America also expressed support for the Secure Payments Act, with President and CEO Rebeca Romero Rainey highlighting the importance of studying the proposal's impact on community banks and access to deposit accounts.

Greg Baer, CEO of the Bank Policy Institute, emphasized the need for regulators to fully understand the implications of reducing interchange fees to avoid unintended consequences. He expressed strong support for the legislation introduced by Luetkemeyer.

Jim Nussle, President and CEO of America's Credit Unions, stressed the importance of studying the potential consequences of reforming the Regulation II interchange fee cap. He praised Luetkemeyer for introducing legislation that will provide real-time data and evidence to inform the Federal Reserve's decision-making process.

Jackson Hataway, Ph.D., President and CEO of the Missouri Bankers Association, applauded Luetkemeyer for introducing the Secure Payments Act, which seeks to prevent damaging missteps and ensure a thoughtful approach to further limitations on debit interchange rates.

The Secure Payments Act of 2024 represents a bipartisan effort to promote transparency and accountability in the regulatory process, with a focus on protecting consumers and preserving access to affordable banking services.