Updated at 2:06 p.m.
Former Rep. L.F. Payne (D-Va.) of McGuireWoods Consulting is advocating for a smart payment card maker on debit card fees, according to a lobbying registration form submitted to Congress less than a week after changes to debit card transactions went into effect Oct. 1.
Payne, the president of McGuireWoods, is representing Cheswick, Pa.-based Dynamics Inc. with two other lobbyists from the firm. The trio is lobbying for the company on security issues, payment card technology and credit card fee legislation, in addition to the implementation of new debit card fees.
The Federal Reserve in June approved rules that lower the fees merchants pay for a customer’s debit card usage. Bank of America Corp. and other banks plan to add or already have added monthly charges for debit card users to help offset money lost by the rules, angering cardholders.
Dynamics, founded in 2007, announced this month that it has reached agreements to produce more than 1 million smart payment cards through 2012. The company’s products include cards that handle two accounts, provide password protection for payment card numbers and allow cardholders to use points or credit for purchases.
Payne said he and his colleagues are trying to educate policymakers about Dynamics cards and the benefits of the company's technology.
"This is very new, and most people are not aware of it," Payne said.
McGuireWoods Consulting is the only firm that has registered to lobby for Dynamics, congressional records show.
A Dynamics spokesman didn't immediately respond to requests for comment.
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