Actions speak louder than words, and being proactive is crucial to maintaining trust and confidence in any professional relationship. When it comes to electronic payments, the financial services industry has shown time and time again its commitment to ensuring everyone can enjoy the many benefits of the modern digital marketplace. These payment methods are not only preferred by most consumers, they are also the future of our economy. However, with these conveniences comes the potential for theft and abuse, which is why we remain vigilant, continue to innovate, and invest in technologies that protect consumers and the system they rely on.
We also recognize a single entity cannot rid our economy of fraud, data breaches, and identity theft, nor will it happen overnight. Players from across industries need to work together. The payments industry is working hard to provide safer, more secure technologies to merchants and consumers, and in return, we would like others who say they share our vision to rise to the challenge with us.
The financial sector, which has comparatively fewer data breaches, spends more time and effort dealing with the fallout from retail breaches than the retailers themselves. The financial industry is tasked with assuaging consumer fears, reassuring them that their money is safe, and issuing new cards, all while continually investing in new ways to stop hackers.
We have long believed that collaboration is essential to the advancement of digital payments, as technological improvements cannot take hold if not supported and widely adopted throughout the payments ecosystem. Only by working together will we be able to improve the security of payments for all consumers.
It has been more than six years since the Senate’s passage of the Durbin amendment as an attachment to the Dodd-Frank act of 2010. Since that time, consumers have been adversely impacted by the legislation. In the past three years, seven separate studies have illustrated these unintended consequences.
In an effort to make up for lost revenue due to the Durbin amendment, banks have had to eliminate free checking accounts and debit card reward programs for customers. According to several surveys, only 39 percent of banks offer a checking account with no minimum balance requirement and no monthly checking fee, down from 45 percent in 2011. Additionally, consumers have yet to see any savings resulting from the $8 billion a year windfall seen by merchants as a result of the Durbin amendment. All of the below studies below illustrate the consequences consumers have felt as a result of the Durbin amendment.