Tester believes he has votes to delay limits on debit-card fees

If Tester has been able to corral the votes need to approve his measure, it would represent a major win for the banking industry, which has been embroiled in a months-long intense lobbying battle with retailers over the fate of about $1 billion a year in potential fees. The Senate appeared to be the largest obstacle that had to be overcome to delay the implementation of those limits.

A bill similar to Tester’s, which would delay the new limits for one year, has been introduced in the House with bipartisan backing. Rep. Barney Frank (D-Mass.), the ranking member of the House Financial Services Committee and titular sponsor of Dodd-Frank, announced Tuesday he would support a delay in the provision, saying it needs to be reworked.

The Federal Reserve, which is required to draft rules implementing the limits, proposed in December a cap of seven to 12 cents per transaction, a major drop-off from the current industry average of 44 cents per transaction.

Fed Chairman Ben Bernanke told lawmakers March 29 that the Fed would miss the April 21 deadline for finalizing those rules, citing more than 11,000 public comments it had to sift through. Instead, the Fed is now focused on getting the rules by July 21, when banks have to start meeting the provision.

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