June 20, 2024

MBA: Ask Hawley, Schmitt To Support Bill To Pause Debit Card Fee Proposal

MBA encourages bankers to ask Sens. Josh Hawley and Eric Schmitt to support legislation that would pause a Federal Reserve proposal to lower the cap on debit card interchange fees. The Secure Payments Act (S. 4570) would prevent the Fed from moving forward with the policy until it completes a full quantitative impact study of its effects on consumer costs and the wider economy.

A House version of the bill was introduced in March by Congressman Blaine Luetkemeyer.

The Fed last fall proposed revising Regulation II to lower the cap from its current rate of 21 cents and .05% of the transaction, plus a 1-cent fraud adjustment, to 14.4 cents and .04% per transaction and a 1.3 cents fraud-prevention adjustment, effective June 30, 2025. It also proposed to update the cap every other year going forward by linking it to data from the board’s biennial survey of large debit card issuers.

MBA President and CEO Jackson Hataway said the association fully supports legislation to “prevent the Federal Reserve from moving too quickly and taking damaging missteps as it considers further limitations to debit interchange rates.”

“The Fed’s proposal would have a dramatic impact on the availability of no or low-cost debit and checking products and would disproportionately burden the lowest income consumers,” Hataway said. “It is our hope that Congress will require the Fed to undertake a much more data-driven, comprehensive and thoughtful approach to a proposal that will impact millions of Americans.”

The American Bankers Association joined four banking and credit union associations in voicing their support for the Senate bill. In a letter to the bill sponsor, ABA and the other associations called the Fed proposal misguided, noting that interchange fees fund the technology upgrades, fraud prevention tools and zero liability that retail customers expect.

MBA Seminar Addresses Bank Fraud

As reports of customer fraud continue to rise, MBA is hosting a one-day seminar Thursday, June 27, in Columbia to help banks combat fraud.

Paul Benda, American Bankers Association executive vice president of risk fraud and cybersecurity, will review some of the biggest challenges in the fraud and cybersecurity space. The challenges range from the tsunami of check fraud to investment scams powered by crypto to the rise of generative artificial intelligence and how AI could power convincing “deep fakes” to enable more fraud.

“Paul is joining us in person for the program to present his insights,” said MBA Senior Vice President Cheri Messerli. “This is a great opportunity for bankers to ask Paul questions and learn more about fraud prevention.”

In another session, representatives from five Missouri community banks discuss their collaborative efforts to inform their customers about fraud awareness.

Other seminar topics include the following.

• Mitigating Loss: Combating the True Cost of Fraud
• Dark Side of Cryptocurrency: Understanding Virtual Assets and How Criminals Use Them for Fraud and Money Laundering
• Ponzi Schemes and Customer Fraud: What Financial Institutions Must Know to Minimize Exposure to Third Parties

For more information and to register for this seminar, visit MBA’s website.

Bankers Meet With MO State Representatives To Discuss Banking Issues

Bankers from northwest Missouri met with their area representatives Thursday, June 13, during a meet-and-greet at Farmers State Bank in Cameron. These meet-and-greets are a new MBA initiative to bring local bankers together with their legislators.

“Our goal is to grow and strengthen relationships between area bankers and their lawmakers,” said MBA Senior Vice President David Kent. “It’s also an opportunity to thank lawmakers for their work and their support on MBA policy issues.”

At Farmers State Bank, bankers met with Reps. Josh Hurlbert, R-Smithville; Peggy McGaugh, R-Carrollton; Doug Richey, R-Excelsior Springs; Terry Thompson, R-Lexington; and Dean VanSchoiack, R-Savannah.

“We thank Duane Kohlstaedt and his team at Farmers State Bank for hosting our first meet-and-greet,” said MBA Vice President Emily Lewis.

MBA is organizing more meet-and-greets across the state. Please contact MBA if you would like to host an event in your area.

KC Fed President To Address NextGen Members

Members of MBA Next Generation in Banking attending NextGen Day at the Fed in Kansas City on Wednesday, July 10, will have an opportunity to meet Jeff Schmid, president and CEO of the Federal Reserve Bank of Kansas City.

“We are honored to have President Schmid join us to share his insights about the Fed and the banking community,” said MBA Vice President Emily Lewis.

Schmid will address NextGen members during lunch. Bankers interested in attending must register online by Wednesday, July 3. This event is free for MBA members.

NextGen also is hosting a day at the Federal Reserve Bank of St. Louis on Friday, July 19. This event also is free, and the registration deadline is Friday, July 12.

Submit Nominations For 2024 NextGen Banking Leadership Award

The Next Generation in Banking Leadership Award recognizes outstanding achievement of a Missouri banker employed by an MBA-member bank. MBA encourages its member banks to submit a deserving nominee from your bank for the 2024 award.

Only bankers employed by an MBA-member bank are considered for this award. Considerations in the selection process include the following about the nominee.

• banking career
• service to the community
• commitment to personal and professional development
• MBA involvement
• other notable achievements and accomplishments

A selection committee approved by the Missouri Bankers Foundation reviews nominations and conducts in-person interviews at MBA’s office in September. All finalists must participate in the interview process.

The 2024 Next Generation in Banking Leadership Award will be presented at the NextGen Leadership Conference scheduled Oct. 3-4 in Kansas City. The recipient also will be honored at MBA’s Executive Management Conference scheduled Dec. 4-6 in Kansas City and will be nominated by MBA for the American Bankers Association Emerging Leaders Award.

In addition, the winner receives $250, an engraved award and statewide recognition. The Missouri Bankers Foundation also makes a donation to the recipient’s chosen charity.

Additional information and a nomination form are posted online, and nominations are due Monday, July 8. For more information, please contact MBA Vice President Emily Lewis.