Credit Suisse says marginal-cost language could be removed from a bill.
SEN. RICHARD DURBIN'S (D-ILL.) Amendment #3989 is currently included in the base text of the financial-reform legislation.
As the bill goes through the reconciliation process, we believe there is a probability that the language of the amendment will be softened. Specifically, the marginal-cost language could be removed and/or limited to interchange fees paid to issuers.
Recall, the amendment will give the Fed the power to ensure that interchange fees charged for debit-card transactions are reasonable and proportional to the costs incurred to process the transactions. Additionally, it would limit payment-card networks from imposing anticompetitive restrictions on small businesses ...
