The Iowa Bankers Association Payments and Cybersecurity Advisory Council responded this week to the Federal Reserve System’s proposed rulemaking to amend Regulation II to clarify routing requirements for card-not-present transactions. The IBA opposed the Durbin amendment to the Dodd-Frank Reform and Consumer Protection Act in 2010, based on a belief that consumers are poorly served by government mandated price controls in nearly every circumstance. The IBA suggested this has proved true in the case of Durbin, as consumers have seen little benefit from merchant savings from lower interchange, and card issuing banks have had to pare back consumer benefits, such as free checking and card rewards programs. At the same time, the IBA supports the provisions of Regulation II, requiring at least two routing options for merchants. This requirement has helped to promote competition and choice for all parties engaged in end-to-end payments. Read the IBA’s letter.