Government Relations

Interchange fees are a nominal charge that offsets the costs of operating a payment system that is extremely beneficial to consumers and retailers alike. When retailers accept electronic payments – credit cards, debit cards or mobile payments – they enjoy numerous advantages, including increased sales, access to a broader customer base, reduced risks associated with handling cash, fewer bounced checks and guaranteed payments.

In 2010, the Durbin amendment was dropped into Dodd-Frank in the dead of night. Without so much as a hearing, the government imposed restrictions and price controls on debit cards and connected checking accounts. Bankers warned that mega-retailers would not pass on any savings at the checkout, and that bank customers would ultimately foot the bill in lost rewards. Both predictions have proven true, but for reasons clear only to the Federal Reserve, the government is poised to double down on this misguided policy with another 30% cut in debit interchange followed by an automatic biannual adjustment. This “one-way ratchet” will continue to hack away at debit programs every two years based on data and a formula of the Fed’s choosing, without public comment.

The 2024 Indiana Legislative Session was highlighted by passing bills to improve reading skills, make childcare more accessible and enhance water infrastructure while deferring more contentious matters such as Medicaid, education, taxes and roads until next year. Lawmakers said before the session began that they planned to take a more measured approach this year, shelving some more controversial proposals, in part so they could condense the usual 11-week “short session” timeframe to just nine weeks. Lawmakers succeeded in that regard, adjourning sine die late Friday, March 8, one week earlier than scheduled after starting a week later.

The IBA gave members of its Future Leadership Division an up-close look this year at the chaos that can come about in the final days of a legislative session. The annual FLD Day at the Statehouse was held on Tuesday, March 5, just days before the General Assembly adjourned sine die on March 8. More than 60 members from throughout the state traveled to our state’s capital to network, learn about grassroots advocacy and see the historic Indiana Statehouse.

The Indiana General Assembly’s 2024 session will be brisk, likely bordering on frantic at times. This year, the Legislature is engaged in what is affectionately known as a “short session,” a characteristic of even calendar years.