Visa Statement Regarding the Federal Reserve’s Recommendations on the Dodd-Frank Act
SAN FRANCISCO--(BUSINESS WIRE)--“Visa has received the initial recommendations of the Federal Reserve related to the debit card regulation provisions of the Dodd-Frank Act. At this time, Visa is still reviewing the specific elements of the recommendations.
“We remain confident in Visa’s ability to compete, win and grow in the payments marketplace through a resilient business model in the U.S., aggressive growth strategies globally and as a leader in product innovation in our industry.”
“We cannot comment in detail on the proposed regulations until we have had a chance to fully consider its proposal. It is clear, however, that the Federal Reserve has left a significant number of issues open for additional comment and deliberation in the coming months. Visa also has concerns that the Federal Reserve’s proposal includes artificial caps on debit interchange that do not realistically reflect the value of card acceptance and do not reflect the actual costs of running a secure, reliable and efficient debit network. Further, the proposed routing and exclusivity alternatives put retailer profits ahead of consumer protection, choice and convenience.
“We urge the Federal Reserve to give appropriate consideration to the important issues raised in letters recently sent to Chairman Bernanke by members of Congress, regarding the potential harmful impact the recommendations will have on consumer choice, privacy and data security protections as well as its impact on the ability of small financial institutions to compete effectively.
“Given the importance and complexity of this undertaking, we believe the Federal Reserve must be given additional time to fulfill its responsibilities and to analyze the unintended consequences of the proposals on the industry and consumers.
“We remain confident in Visa’s ability to compete, win and grow in the payments marketplace through a resilient business model in the U.S., aggressive growth strategies globally and as a leader in product innovation in our industry.
“We will provide the Federal Reserve feedback on its initial recommendations and the serious questions they have raised as soon as possible.”
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