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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
The Global Economics Group issued a press release announcing a new study examining the impact of the Durbin amendment on consumers. The study finds that consumers will lose more than $22 billion as a result of interchange caps. Dr. David Evans, lead author of the study will be discussing his findings at an upcoming conference on the Durbin amendment in Washington D.C. on November 6.
The official press release of the coalition of trade associations that filed a friend-of-the-court brief. The coalition includes: Credit Union National Association; Independent Community Bankers of America; National Association of Federal Credit Unions; National Bankers Association; Midsize Bank Coalition of America; Consumer Bankers Association; The Clearing House Association; American Bankers Association; and The Financial Services Roundtable.
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
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.