Debit-card interchange fee cap concerns banks

The Dodd-Frank Wall Street Reform and Consumer Protection Act is celebrating its first birthday this month. It has been a year of changes and adjustment for area bankers, who have been handed 566 final rules and guidances by regulators since the legislation took effect in July 2010.

These 566 rules have resulted in 2,489 pages of new regulations, and the Colorado Bankers Association estimates that this number will increase to a total of 5,000 pages of new or expanded regulations as a result of Dodd-Frank.

The main concern of banking professionals and others in the industry since Dodd-Frank was initially presented in December 2009 was potential overregulation, according to acting Colorado banking commissioner Fred Joseph.

One of the most recent issues concerning local bankers is the decision of the Federal Reserve on debit card interchange fees, which was handed down late last month.

Dodd-Frank includes a provision that requires the Federal Reserve to issue rules ensuring that debit card fees charged to merchants are "reasonable and proportional to the cost of processing these transactions," according to a summary of the Dodd-Frank legislation provided by the U.S. Senate.

After hearing much input from more than 11,000 commentators,