The Senate on Thursday passed controversial legislation clamping down on fees that card issuers charge merchants, handing Senate Majority Whip Dick DurbinDick DurbinWarren burns Mnuchin over failure to disclose assets Trump Treasury pick to defend foreclosure record Senate Democrats brace for Trump era MORE (D-Ill.) a major victory.
As part of debate on Wall Street overhaul, the Senate passed, 64-33, legislation championed by Durbin that drew significant Republican support. Ten Democrats opposed the legislation, while 17 Republicans crossed the aisle to support a bill that aims to rein in fees placed on debit cards.
"It is a shame that their attempt at getting back at big banks and large credit card companies has spilled over to credit unions and community banks," said Dan Berger, executive vice president at NAFCU. "This will do nothing for consumers but go straight to the bottom line of the big box stores and giant retailers."
Durbin overcame the lobbying to pass legislation that requires the Federal Reserve to issue rules on swipe fees for debit cards to ensure fees are "responsible and proportional" to processing costs. The legislation does not ban swipe card fees. Durbin had won strong backing from merchant and retail groups. Durbin said the restrictions would not apply to banks and credit unions with $10 billion or less in assets.
"It wasn't introduced as a partisan amendment," Durbin said Thursday before the vote. "I brought this because it is a small business, retail amendment that I think is valid and just."
Rep. Peter WelchPeter WelchFive areas where Trump and Dems could make a deal Overnight Tech: Trump meets with AT&T, Google execs | Pompeo and Wyden battle | Dem's new House E&C roster Overnight Tech: Trump meets AT&T, Google execs | CIA nominee grilled on privacy | Court revives lawsuit over Apple apps | Trump team takes credit for Amazon jobs MORE (D-Vt.), who is a strong supporter of efforts to rein in card fees, praised the Senate vote.
"This momentous, overwhelming vote sends an unambiguous message to credit card companies that the American people have had enough of swipe fees and have had enough of cash register rip-offs," Welch said.
Senate Democrats opposing the amendment were: Daniel Akaka (Hawaii), Max BaucusMax BaucusFive reasons why Tillerson is likely to get through Business groups express support for Branstad nomination The mysterious sealed opioid report fuels speculation MORE (Mont.), Evan Bayh (Ind.), 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 (Del.), Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (S.D.), Ted Kaufman (Del.), Claire McCaskillClaire McCaskillFive things to watch for in Mnuchin hearing Senators introduce dueling miners bills GOP must avoid Dems' mistakes when replacing ObamaCare MORE (Mo.), Jon TesterJon TesterSenators introduce dueling miners bills Live coverage: The Senate's 'vote-a-rama' Dems attack Trump SEC pick's ties to Wall Street MORE (Mont.) and Mark WarnerMark WarnerDecaying DC bridge puts spotlight on Trump plan Overnight Cybersecurity: Dems split on Manning decision | Assange looking to make deal The Hill's 12:30 Report MORE (Va.). Sen. Joe Lieberman (I-Conn.) also opposed the legislation.
Senate Republicans supporting Durbin's bill were: John Barasso (Wyo.), Scott Brown (Mass.), Richard BurrRichard BurrSenators introduce dueling miners bills Trump education pick to face Warren, Sanders Senate Intel panel to probe Trump team's ties to Russia MORE (N.C.), Saxby ChamblissSaxby ChamblissWyden hammers CIA chief over Senate spying Cruz is a liability Inside Paul Ryan’s brain trust MORE (Ga.), Susan CollinsSusan CollinsGOP rep faces testy crowd at constituent meeting over ObamaCare DeVos vows to be advocate for 'great' public schools GOP senators introducing ObamaCare replacement Monday MORE (Maine), 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 (Idaho), John Ensign (Nev.), Mike EnziMike EnziDem senator: DeVos ‘sends shivers down the spine’ Trump Education pick: States should decide on allowing guns in schools Schumer puts GOP on notice over ObamaCare repeal MORE (Wyo.), Lindsey GrahamLindsey GrahamGraham to vote for Trump’s EPA pick Tillerson met with top State official: report McCain ‘very concerned’ about Tillerson MORE (S.C.), Charles GrassleyChuck GrassleyGOP senator: Trump budget chief could face confirmation 'problems' Jeff Sessions will protect life Justice, FBI to be investigated over Clinton probes MORE (Iowa), Johnny IsaksonJohnny IsaksonTrump, Democrats can bridge divide to make college more affordable Trump picks Obama nominee for VA secretary Five races to watch in 2017 MORE (Ga.), George LeMieux (Fla.), Richard Lugar (Ind.), Jim RischJim RischGOP senators avoid Trump questions on rigged election GOP to Obama: Sanction Chinese entities to get to North Korea Research: Infrastructure systems easy to hack, a little slow to patch MORE (Idaho), Olympia Snowe (Maine), David VitterDavid VitterLobbying World Bottom Line Republicans add three to Banking Committee MORE (La.) and Roger WickerRoger WickerFive takeaways from Chao’s confirmation hearing Overnight Tech: Tech listens for clues at Sessions hearing | EU weighs expanding privacy rule | Senators blast Backpage execs Ex-Transportation chief: tax writers key to Trump’s infrastructure plan MORE (Miss.).
Sens. Robert Byrd (D-WVa.), Kay Bailey Hutchison (R-Texas) and Bill NelsonBill NelsonLive coverage: Senators grill Trump's Treasury pick Trump's Commerce pick admits to unknowingly hiring undocumented worker Senate Democrats brace for Trump era MORE (D-Fla.) did not vote.
"This amendment helps big merchants, but consumers will pay the price," MasterCard said in a statement.