Congressional Republicans have reportedly dropped an effort to repeal federally mandated caps on debit card swipe fees, handing a victory to retailer and restaurant associations.

The proposed repeal was part of legislation seeking to undo many of the regulations created by the Dodd-Frank law. However, opposition to the measure was threatening to sink the entire bill, prompting GOP leaders to remove the controversial provision, Politico reported. http://politi.co/2rUNe9e

Banks and other financial institutions had lobbied for the elimination of the cap, but the repeal was opposed by retailers, restaurants and other businesses. In a statement, the National Retail Federation called the GOP decision "a major victory for the consumers who have saved billions of dollars under swipe fee reform."

"Repeal of reform would have allowed banks to return to the uncompetitive market that that allowed them to set these fees as high as they liked," NRF Senior Vice President and General Counsel Mallory Duncan said.

NACS-The Association for Convenience and Fuel Retailing also welcomed the news. The National Restaurant Association issued a short statement calling the removal of the provision proof that "that Congress is listening to the needs of small businesses."

At least one banking industry group vowed to continue the fight against swipe fee caps. In a memo to members obtained by Bloomberg, American Bankers Association Executive Vice President James Ballentine said the development was "unfortunate, but certainly not the end of this debate." https://bloom.bg/2qgqBil

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