Senate Fails to Protect Consumers, Community Banks and Credit Unions from Effects of Durbin Debit Card Price Caps

On June 8, by a vote of 54-45, the U.S. Senate failed to pass a compromise version of the Debit Interchange Fee Study Act as an amendment of the Economic Development Revitalization Act (S. 782). The legislation would have required a study into the unintended consequences that will result from debit interchange price caps mandated by the Durbin Amendment to the Wall Street Reform and Consumer Protection Act (Dodd-Frank).

"It is stunning that the Senate chose to ignore every major banking regulator who warned that this rule could harm community banks and credit unions – and possibly even result in bank failures at a time when our country can least afford it," said Trish Wexler, spokesperson for the Electronic Payments Coalition. "Giant retailers may have protected their $12 billion windfall at the expense of small businesses and debit cardholders across America. But we will not give up the effort to protect debit card holders from the effects of this ill-conceived legislation."

• Read EPC’s full statement »
• Read NAFCU’s full statement »
• Read CUNA’s full statement »
• Read ABA’s full statement »