New, shorter delay to interchange limits introduced

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The latest attempt at an amendment marks the latest round in one of the most bruising lobbying battles on Capitol Hill over the so-called Durbin amendment. With billions in potential revenue at stake, retailers and banks have been engaged in a months-long battle over the provision, backed primarily by Sen. Dick DurbinDick DurbinTrump Treasury pick to defend foreclosure record Senate Democrats brace for Trump era Senators introduce dueling miners bills MORE (D-Ill.).

It also comes as the July 21 deadline for the limits to take effect draws close.

Under the new amendment, if the Federal Reserve -- which is required to write rules implementing the new limits -- and another financial regulator determine the provision fail to account for all costs, adversely affect debit card users, or cannot exempt small banks, then the Fed would be required to rewrite the rules over a six month period.

If regulators do not come to those conclusions, the Fed is free to move forward with its currently proposed rules -- which would slash the fees banks can charge retailers for using debit cards from the current industry average of 44 cents to seven to 12 cents per transaction.

In addition, the amendment would require regulators to revist the small bank exemption two years later to make sure it is still working properly, and report those findings to Congress.

Retailers immediately launched into strong opposition to the amendment as it was being rolled out on the Senate floor, calling it a handout to banks.

"While proponents try to cast this amendment as a 'compromise,' it is just the opposite," said Sandy Kennedy, president of the Retail Industry Leaders Association. "The Tester/Corker Amendment is a remarkable giveaway to big banks and credit card companies at the expense of merchants and consumers, pure and simple. "

Signing on to the Tester-Corker amendment were Sens. Kay HaganKay Hagan Former Sen. Kay Hagan in ICU after being rushed to hospital GOP senator floats retiring over gridlock 2016’s battle for the Senate: A shifting map MORE (D-N.C.), Tom CarperTom CarperPruitt says his EPA will work with the states Dems prepare to face off with Trump's pick to lead EPA Justice, FBI to be investigated over Clinton probes MORE (D-Del.), Mike CrapoMike CrapoLive coverage of Sessions confirmation hearing Senate rejects Paul's balanced budget Dems attack Trump SEC pick's ties to Wall Street MORE (R-Idaho), Roy BluntRoy BluntTrump told of unsubstantiated Russian effort to compromise him Overnight Tech: Tech listens for clues at Sessions hearing | EU weighs expanding privacy rule | Senators blast Backpage execs A bitter end to the VA status quo MORE (R-Mo.) Jon Kyl (R-Ariz.), Chris CoonsChris CoonsTrump, Democrats can bridge divide to make college more affordable Senate Dems urge Sessions to abstain from voting on Trump’s Cabinet picks Booker to vote against Tillerson MORE (D-Del.) and Michael BennetMichael BennetThe Hill's 12:30 Report Corrected — Lawmakers: Trump can't stop investigation of Clinton email case Cory Booker kicks off 2020 maneuvering in the Senate MORE (D-Colo.). Bennet, Crapo and Hagan all originally voted for the Durbin amendment.

Bernie Becker contributed to this report.