Senate Proposes Raising Debit Card Fee Cap for Small Banks (SENATE LEGISLATION)

Senators Ted Cruz (R-Texas) and Katie Britt (R-Alabama) introduced legislation to modernize the Durbin Amendment, tying the $10 billion asset cap for debit card swipe fees to the Consumer Price Index. The retroactive change would lift restrictions on smaller banks, keeping the 21-cent base fee plus 0.05% per transaction. The proposal, effective from 2010, aims to reflect inflation and reduce retail banking costs. A companion bill is pending in the House led by Rep. Andy Barr (R-Ky). The current interchange fee structure, exceeding 2% for many retailers, faces ongoing regulatory and lobbying battles, including efforts by Durbin and Marshall to maintain the cap. The move aligns with broader efforts to adjust post-crisis banking regulations to current economic realities.