Dennis A Ross

Retailers cheer GOP retreat on ending debit card fees limit

Restaurants, grocers and other businesses celebrated on Thursday as House Republicans backed off efforts to eliminate the cap on fees that banks can charge retailers when customers use a debit card.

The chairman of the Financial Services Committee, Rep. Jeb Hensarling, R-Texas, had pushed for scrapping the limit as part of his legislation to gut the Dodd-Frank law, the strict financial rules established after the 2008 financial crisis and the Great Recession. Big banks have lobbied strenuously against the cap, arguing that it hurts financial institutions while giving a break to retailers.

The issue, however, divided congressional Republicans and had forced the leadership...