Meeting Between Federal Reserve Staff and Merchants Payment Coalition November 2, 2010 Participants: Representatives of the Merchants Payment Coalition (MPC), Walmart, Sears Financial Services, Publix Super Markets, The Kroger Co., Best Buy, 7-11, Charming Shops, and Supervalu. Louise Roseman, David Mills, Robin Prager, Mark Manuszak, Edith Collis, Chris Clubb, Dena Milligan, Joshua Hart, Stephanie Martin, David Stein, and Ky Tran-Trong (Federal Reserve Board); Julia Cheney (Federal Reserve Bank of Philadelphia) Summary: Federal Reserve staff met with representatives of the MPC, merchants and other individuals representing merchants (collectively referred to as "merchants") to discuss the interchange fee provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). MPC is a trade organization that represents about 2.7 million retail stores. Using prepared materials, representatives of the merchants outlined economic principles of regulation and expressed views as to their preferred approaches for implementing the interchange fee provisions of the Dodd-Frank Act. Specifically, representatives of the merchants expressed their preference for a presumptive at-par interchange fee, limiting the fraud adjustment to issuer-specific actions that demonstrably prevent fraud, imposing limits on fees charged to merchants, and requiring at least two networks per authorization method on a debit card. A copy of the prepared materials is attached. [note1 A revised version of the materials distributed at the meeting has been attached to this summary at the request of MPC. [end of note.] CONSTANTINE CANNON Jeffrey I. Shinder NEW YORK WASHINGTON Attorney at Law 212-350-2709
[email protected] October 27, 2010 BY E-MAIL Ms.