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Expert: Fed to revist Durbin Amendment within two years

The Federal Reserve will likely revisit its Durbin Amendment regulations in the next one to two years according to an international debit expert.

Andy Brown, the director of product marketing for ACI Worldwide, a payments software developer, spoke on an ACI conference call on Wednesday about his experience with debit in various countries.

Brown said that in every other country that regulated debit interchange, regulators had to revisit the rule to make changes, according to Credit Union Times.

“This reg will probably get changed in one or two years," Brown said according to DigitalTransactions.net. "Every regulator we’ve seen [overseas] has always come back and changed things again."

Brown said that Fed Chairman Ben Bernanke had hinted at the possibility of revisiting the issue when he said the Fed would be paying attention to how the small issuer exemption to the cap worked or failed to work, according to Credit Union Times.

In June, Sens. Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) introduced legislation to delay implementation of the Durbin Amendment in order to conduct a two year review of the impact a debit interchange reduction could have on the economy. The bill fell short by six votes of the 60 it needed to pass the Senate.

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