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Regulation Fuels 21% Surge in Checking Fees
Bloomberg | February 29, 2012“Fees have increased as regulations have curtailed some of banks’ related revenue sources, Javelin said. Rules requiring banks to get consumers’ consent for overdraft protection, and limiting what banks may charge merchants on debit transactions, have cost the industry about $12.2 billion annually, according to the study.”
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Customers Say Retailers Are Not Living Up to Durbin Amendment Promise
Consumerism Commentary | February 22, 2012“If you’ve been shopping throughout the past year, particularly since October 1, 2011 when the [Durbin amendment] regulation went into effect, you probably haven’t noticed prices decreasing. In fact, I would say prices overall, from my anecdotal experience, have continued to rise. Recent research confirms this suspicion, to the tune of a 1.7% increase across a list of common items.”
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Ipsos Survey: Only 7% Think Most Retailers Are Passing Along Savings from Lower Debit Card Fees to Consumers
Electronic Payments Coalition | February 20, 2012“We shouldn’t be surprised. Congress gave giant retailers a handout with no guarantee that the savings would be given back to consumers,”
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Dodd-Frank: Too big not to fail
The Economist | February 18, 2012“Consequently the payment industry may be in the early stages of a rule-driven and otherwise unlooked-for transformation with no rationale in efficiency or safety.”
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Banks roll out new fees after debit fees fail to fly
Orlando Sentinel | February 18, 2012“Congress has to understand that, whenever you pass legislation such as the Durbin Amendment, all of us as consumers are going to pay for it,” said Alex Sanchez, chief executive officer of the Florida Bankers Association. “The more regulations you pass on the banks, the more those costs are passed on to the people on Main Street.”
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How New Hampshire’s Proposed Swipe-Fee Cap Could Hurt Consumers
US News & World Report | February 9, 2012“Instead, it’s likely to drive business away from state-chartered banks. Facing lower revenues, state banks will be forced to increase their prices: eliminating free or rewards checking, raising credit card interest rates, or charging higher fees.”
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Credit Card Fees Causing Merchants to Limit Minimums
Enterprise.com | February 8, 2012“Credit cards are a way to increase sales, give your business a competitive edge, capture impulse buyers and improve your cash flow, said Jeff Byrd of Sage Payment Solutions. New federal debit card swipe fee rules will fall hardest on the small stores that line Park Rapids’ Main Street.”
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Personal Finance: 610,000 Ditched Banks in Fee-Asco
Sacramento Bee | February 5, 2012“Bank watchers say consumers can expect more new fees – including the gradual loss of “free” checking – as big banks try to recoup billions in revenue they’ve lost due to congressional reform efforts, such as the recent Durbin Amendment that halved the “swipe fees” that banks charge retailers who accept debit cards.”
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Debit Fees Gone, but What’s Next?
Charlotte Observer | February 5, 2012“Combined, Bank of America Corp. and Wells Fargo & Co. reported losing nearly $800 million in swipe-fee revenue in the fourth quarter. Regional banks felt a deep impact as well. Banks were on pace to lose the $6 billion that had been predicted. So with debit-card fees off the table, how will they make it up? Fees have gone up across the board in the industry,” said analyst Dick Bove of Rochdale Securities. “That’s the only way they can get their money back.”
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Dodd-Frank’s Consequences
SF Gate | February 2, 2012“Financial institution compliance with the bill’s numerous provisions will cost both time and money. A recent Economist piece cites the example of the Durbin Amendment’s requirement of a drop in debit card fees which has cost banks $7 billion.”
