Idaho U.S. Senators Mike Crapo and Jim Risch voted today to delay a Federal Reserve rule capping debit card swipe fees, but there weren't enough votes to hold off the new rule. As a result, the new regulations designed to reduce transaction fees are set to take effect in July as scheduled. The financial industry warned that the move could cost them billions of dollars in lost fee revenue.
The financial industry is now expected to turn to Plan B: urging the Federal Reserve to remap its plans to limit the fees.
"It is within the Fed's power to mitigate the disastrous consequences that are sure to come from this policy initiative," said Frank Keating, president and CEO of the American Bankers Association.
In December 2010, the Fed proposed capping the swipe fees at 12 cents per transaction, replacing a formula that averages 1.14 percent of the purchase price.