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Federal Reserve Announces They Will Not Revise Durbin Amendment Fee Caps
Debit Card Issuer Survey Also Finds Decline in Revenue for Small Financial Institutions Washington, DC – Today, the Board of Governors of the Federal Reserve System announced that it is not proposing any revisions to the debit interchange fee cap provided by Regulation II (the “Durbin amendment” regulation), following the publication of its report on interchange fee revenue and debit issuer costs – the second in a series to be published every two years, pursuant to Section 920 of the Electronic Fund Transfer Act (EFTA). In this report, the Board also finds that interchange revenue has begun to decline for smaller credit unions and community banks that were supposed to have been “exempt” from these price controls. In the report, the Board writes, “In contrast, the average interchange fee per transaction received by exempt issuers declined 4 percent, from 45 cent to 43 cent after the interchange fee standard became … Continue reading
How Senator Durbin raised transaction fees
Senator Durbin would prefer Parkmobile to blame companies that issue debit cards. But, indeed, it was Dodd-Frank, the so-called Wall Street reform legislation, and Senator Durbin’s amendment to Dodd-Frank, which capped “swipe fees,” that caused debit card transaction fees on lower-priced items to rise.
Gas Retailers Gained a $1 Billion Subsidy from Durbin Amendment
New data released today finds that gas retailers are saving a $1 billion annually at the expense of consumers, thanks to the so-called “Durbin amendment,” a provision of the Dodd-Frank legislation which capped what retailers pay to accept debit cards beginning in October 2011.
Financial Industry Coalition Files Amicus Brief in Retailers’ Lawsuit Against Federal Reserve
“The merchants have claimed all along that imposing government price controls on interchange fees would directly benefit consumers, yet there is absolutely no evidence that they have lowered their prices,” said coalition spokeswoman Trish Wexler. “So while consumers have gotten nothing from the retailers, the merchants are back asking the courts to add even more to the $6 billion windfall they are now enjoying.”
Ipsos Survey: Only 7% Think Most Retailers Are Passing Along Savings from Lower Debit Card Fees to Consumers
“We shouldn’t be surprised. Congress gave giant retailers a handout with no guarantee that the savings would be given back to consumers,”
New Research Shows Retailers Pocketing Savings from Durbin Amendment
“Merchants’ empty promises to pass savings on debit card purchases are coming to light.”
Electronic Payments Coalition Announces Support of House Bill to Repeal Harmful Durbin Amendment
“The Durbin amendment was forced into law despite repeated warnings from consumer advocates, regulators, and economists on the dire consequences that await consumers.”
Electronic Payments Coalition Announces Support of Senate Bill to Delay and Study Federal Reserve Debit Card Rule
“The Durbin amendment was rushed through with literally no consideration as to the impact on consumers, community banks and credit unions, or our fragile economic recovery,”
Fed Debit Card Rule Will Harm Credit Unions, Community Banks
“Today’s hearing confirmed what community banks, credit unions and their customers have been saying for months: the Federal Reserve debit card interchange rule will hurt small financial institutions and their customers.”
Every Major National Bank and Credit Union Trade Association Joins to Urge Fundamental Revision of Federal Reserve’s Debit Card Rule
“The full policy ramifications – who’s paying for what, who’s going to pay more and who’s going to pay less under this – is something that maybe wasn’t dealt with as thoroughly as it might have been,” said Sheila Bair.
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