Benjamin Chavis: Congress is right…Federal Reserve’s Reg. II will hurt minority communities in America

I am pleased to congratulate Rep. Nikema Williams (D-Ga.) who led a coalition of lawmakers who& wrote& to the Federal Reserve urging the central bank to withdraw Regulation II—its new proposal to reduce the cap on the debit card swipe fees merchants must pay to debit card processors—out of concern that it will hurt minority communities’ credit access. I sympathize with the feelings of these congressional members. Having dedicated my life to advancing civil rights and promoting economic advancement for African Americans, I fear that this proposal, while well-intentioned, will create regressive outcomes that will ultimately hurt the very people it is intended to help. While lowering the current cap on debit card swipe fees may appear like a reasonable measure to take in what has proven to be a lackluster economy for many merchants, my experiences — from coordinating youth activities with Rev. Martin Luther King to serving on the national board of directors for the NAACP — have underscored the importance of scrutinizing policies for their broader implications. When doing so with Regulation II, I— like the congressional coalition—concluded that lowering the swipe fees would hurt the same small financial institutions that minority communities depend on for credit...