SAN FRANCISCO, Dec 16, 2010 (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 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."
SOURCE: Visa Inc.
Visa Inc.
Will Valentine, 415-932-2564
globalmedia@visa.com