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EPC Calls for Durbin Amendment Repeal and Better Security Standards: Support H.R. 5465, H.R. 5983 and H.R. 2205 to Protect Consumers
WASHINGTON (September 30, 2016) – Five years since the implementation of the ill-conceived Durbin Amendment, customers are still not seeing savings at the register and small businesses continue to feel the impacts of this legislation. Ahead of the October 1st anniversary of Durbin Amendment implementation, the Electronic Payments Coalition calls on legislators to continue their support of repeal by backing H.R. 5465 and section 335 of H.R. 5983. The Durbin Amendment continues to be nothing more than a merchant markup allowing big box retailers to pocket more than $36 billion to date—impairing small mom and pop stores and hurting customers in the process. “The numbers don’t lie: the Durbin Amendment has been a complete failure for everyone except the big-box stores, who have padded their bottom lines to the tune of six to eight billion dollars each year,” said Molly Wilkinson, executive director of the Electronic Payments Coalition. “Once consumers … Continue reading
Statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) on the markup of Chairman Jeb Hensarling’s (R-TX) Financial CHOICE Act: WASHINGTON, D.C. (September 13, 2016) – The Electronic Payments Coalition thanks Chairman Hensarling for leading efforts to repeal the Durbin Amendment as part of the Financial CHOICE Act. We applaud members of the House Financial Services Committee for acknowledging that the Durbin Amendment required repeal. The last six years confirm dire warnings from Democrats and Republicans alike that the Durbin Amendment hurts many of the same consumers the law was intended to help. Studies from Federal Reserve Banks in Boston and Richmond, as well as research by George Mason University Professor Todd Zywicki and Phoenix Marketing International, prove that Merchants failed to pass the savings from reduced interchange fees along to their customers and instead pocketed an additional $6 to $8 billion a year on the backs … Continue reading
WASHINGTON, D.C. (September 12, 2016) – Today, the Electronic Payments Coalition (EPC) sent a letter in support of the Financial CHOICE Act’s repeal of the Durbin Amendment to Chairman Jeb Hensarling, in advance of the House Financial Services Committee meeting to debate H.R. 5983–the Financial CHOICE Act. EPC salutes Chairman Hensarling’s forward-thinking leadership to repeal the failed Durbin Amendment as part of a reform package that aims to, in the words of Chairman Hensarling, “help grow the economy for all Americans, not just those at the top.” “Over the last six years, the Durbin Amendment has severely impacted customers, especially lower income and younger consumers by hitting them twice—first, at the cash register by not getting promised discounts, and then by reducing their access to financial services. The amendment’s artificial price controls led to a $36 billion handout for large retailers, which they have used to pad their bottom lines … Continue reading
WASHINGTON – The Electronic Payments Coalition (EPC), representing more than 12,000 credit unions and community banks, trade associations, payment card networks and banks, submitted comments supporting the repeal of the Durbin Amendment in the Financial CHOICE Act. Commending Chairman Hensarling for his leadership in addressing the overly burdensome and unfair price controls introduced by the Durbin Amendment, the EPC stated that the Durbin Amendment failed to deliver on its key promise, which was savings for consumers. “The Durbin Amendment has adversely impacted low-income consumers because it resulted in raised banking costs and made debit a less desirable option…and negatively impacted small and community banks even though they were told they would not be harmed. Evidence of the Durbin Amendment’s failure is clear, and because of its negative impact on consumers, particularly low- and moderate-income consumers, and community banks and credit unions, it deserves to be repealed,” writes EPC Executive Director … Continue reading
Statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) on the release of Chairman Jeb Hensarling’s Financial CHOICE Act draft legislation : “The Electronic Payments Coalition supports the hard work of Chairman Hensarling and his push to repeal the Durbin Amendment as part of the Financial CHOICE Act. The Durbin Amendment’s misguided and harmful price controls created one winner—big box retailers—and many losers by hurting customers, small businesses, credit unions, and banks of all sizes. It is time to free the electronic payments marketplace from these price-fixing shackles imposed by big box retailer special interests. We thank Chairman Hensarling for his leadership and commitment to end this failed policy.” To learn more about the harmful effects of the Durbin Amendment, read the letter EPC members sent to Chairmen Hensarling and Neugebauer and the letter from 51 state bankers associations in support of repeal. ### About the Electronic … Continue reading
WASHINGTON, D.C. – Members of the Electronic Payments Coalition (EPC)—the American Bankers Association (ABA), Consumer Bankers Association (CBA), Credit Union National Association (CUNA), Financial Services Roundtable (FSR), Independent Community Bankers of America (ICBA), National Association of Federal Credit Unions (NAFCU)—today sent a joint letter to House Financial Services Chairman Hensarling (R-TX) and Representative Randy Neugebauer (R-TX) in support of their efforts to repeal the Durbin Amendment. The letter highlights the negative impact the amendment has had on consumers and financial institutions nearly five years after the legislation went into effect. Rep. Neugebauer’s bill, H.R. 5465, comes one week after Chairman Hensarling included repeal of the Durbin Amendment’s in his June 7th speech unveiling the Financial CHOICE Act. “The bottom line is this amendment introduced price-fixing to a formerly functional and competitive marketplace and failed to keep the dubious promises made to sell it—ultimately hurting customers,” the groups write. Despite promises … Continue reading
Statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) praising Chairman Jeb Hensarling (R-TX) for his leadership on The Financial CHOICE Act: “The Electronic Payments Coalition applauds Chairman Hensarling’s vision and hard work on The Financial CHOICE Act which provides commonsense reforms that promote economic growth for all Americans. Of critical importance to the coalition is repealing the harmful federal price controls of the Durbin Amendment and we look forward to working with the Chairman on ending this failed policy.” Read EPC’s press release.
EPC To Fed Chair: Durbin Amendment Rewards Retailers $36 Billion in Additional Profits, But Provides No Relief to Consumers
Electronic Payments Coalition Executive Director Molly Wilkinson today wrote Fed Chair Janet Yellen to express concerns regarding the detrimental effect the Durbin amendment is having on consumers. In the letter, which was submitted pursuant to the regulatory review being conducted under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), Wilkinson details how the Durbin amendment never fulfilled its promise of lowering costs to consumers at checkout, but has instead allowed retailers to pocket approximately an additional $36 billion in profit. Citing a recent August 2015 Federal Reserve Bank of Richmond study, Wilkinson notes that few merchants are found to reduce prices or debit restrictions as debit costs decrease. In another survey 92% of the nearly 2000 consumers questioned reported that prices rose or stayed the same over the previous year. “…[this] study confirms what common sense and economic theory tell us – that is, retailers never had any … Continue reading
October 1, 2015 marks the fourth anniversary of the Durbin amendment’s implementation, but consumers aren’t celebrating. Once again, a new survey shows at least 92 percent of shoppers in each of the 15 categories measured reported that prices have increased or remained the same over the past year. This survey provides additional evidence that despite retailer promises that they would lower prices after realizing savings from the amendment – savings that now total over $32 billion – consumers generally have not seen savings.
On the Third Anniversary of the Durbin Amendment, 94% of Consumers Not Seeing the Savings Retailers Promised Them
WASHINGTON, DC – October 1, 2014, marks the third anniversary of the implementation of the Durbin amendment, a piece of legislation that was masked as reform, but was nothing more than an $8 billion annual windfall for retailers. While retailers promised they would pass along savings to consumers – savings that now amount to over $24 billion for retailers – a new survey shows that 94% of consumers have seen prices that have increased or remained the same over the past three years. This survey, conducted in September 2014 by Phoenix Marketing International and sponsored by the Electronic Payments Coalition, asked 3,400 consumers about price changes they have observed at a variety of retailers. The research shows that 94% of consumers have seen prices increase or remain the same in the 16 individual point-of-sale categories measured in the survey, and a majority of consumers have seen prices increase at pharmacies, … Continue reading