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Table of Contents

Lead Story

Card acquiring:
Banking's forgotten family member?


Industry Update

Smart phone, smart payment

Open-loop gift card issuers given reprieve

Congress hammers issuers, acquirers spared

Trustwave alerts hospitality sector


Conference on your desktop

MWAA, a focus on opportunities

PCI unlocks a treasure of security content

Acquiring by the numbers

Selling Prepaid

Prepaid in brief

Virtual card delivers instant rewards

Payroll card market opportunities beckon

Rate this market: African immigrants


VoIP not a secure option

Scott Henry

Bad things happen to good people

Biff Matthews
CardWare International


Street SmartsSM:
Trusty tips for terrific networking

Jon Perry and Vanessa Lang

Margin compression: It's in your hands

Jeff Fortney
Clearent LLC

Elegant e-mail marketing

Daniel Wadleigh
Marketing Consultant

Seven steps to a practical PCI program

Tim Cranny
Panoptic Security Inc.

Company Profile

Sterling Payment Technologies

New Products

Wi-Fi installation simplified


Automatic collections with RDC

Electric Check Processing Plus
CrossCheck Inc.

Comprehensive e-commerce platform

Universal Financial Systems Inc.


Strength in cooperation



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

June 08, 2009  •  Issue 09:06:01

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Congress hammers issuers, acquirers spared

President Obama signed into law the Credit Card Accountability Responsibility and Disclosure Act of 2009 (The Credit CARD Act) on May 22, 2009. Only days earlier, the Senate overwhelmingly approved the legislation that would curb fees and interest rate hikes, as well as other practices associated with credit card issuance.

The vote was 90 to 5. But, under congressional rules, a House-Senate conference committee had to work out differences in the legislation before a final bill could be presented to the President. In passing SB 414, lawmakers declined to monkey around with interchange. However, the bill does request that the General Accountability Office study the impact of interchange fees on consumers and merchants.

Interchange up for scrutiny

Specifically, the congressional watchdog agency would be asked to review:

  1. The extent to which interchange is disclosed and degree of federal regulatory oversight of the process
  2. How interchange affects the ability of merchants of all sizes to negotiate pricing
  3. Cost factors that are blended into interchange
  4. The impact of interchange on consumer prices

SB 414 passed despite inclusion of a nongermane gun control amendment that would prohibit the U.S. Department of the Interior from banning people who legally possess guns from carrying those weapons onto federal parklands.

SB 414, introduced by Sen. Chris Dodd, D-Conn., codifies regulations adopted last year by the Federal Reserve, calls for quicker implementation of those regulations and adds a few other requirements.

Key provisions include sharply restricting card-issuer efforts to raise interest rates on existing balances, limiting certain extraneous fees, imposing new disclosure requirements and banning card issuance to minors.

Efforts by Sen. Bernie Sanders, I-Vt., to cap card rates, as well as a push from merchant groups to include an amendment codifying the right to surcharge credit card payments, were shot down before the bill was passed.

Similar legislation - the Credit Cardholder's Bill of Rights (HR 627), introduced by Rep. Carolyn Maloney, D-N.Y. - passed in the U.S. House of Representatives in late April 2009, minus the GAO study and gun rights provisions.

"This is a victory for every American consumer who has ever suffered at the hands of a credit card company," Dodd said. Dodd has been pushing for credit card reforms for years.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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