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Debit and credit cards make it far more convenient to buy the things you need or love. Debit interchange convenience fees – the small charges retailers pay for the flexibility of accepting cards – make these transactions possible, secure, and reliable. The Durbin amendment changed the way this once reasonable cost of business is calculated. Prices at big-box retailers should have been lowered for customers thanks to this change, it’s what retailers promised after all, but that hasn’t happened. Big-box retailers have now pocketed $42 billion that was meant to go to you. This is what we call the Merchant Markup. Meanwhile, community banks, credit unions, and consumers are carrying the burden and being forced to eliminate debit card rewards and free checking accounts. The Durbin amendment puts red tape and price controls on these purchases and must be immediately and completely repealed to restore the free market. Check out our video here.
US banks are stepping up efforts to win one of Washington’s fiercest lobbying battles with a push to end limits on debit card fees that they claim have failed to help consumers and handed retailers a $42bn windfall. The American Bankers Association is hoping to capitalise on Donald Trump’s vow to “do a number” on the Dodd-Frank act as it fights limits on swipe card charges included in post-crisis reforms. Continue Reading at Financial Times
“Consumers are on the verge of getting a great windfall…” Using retailers’ own words, EPC launched a compelling video focusing on the “broken promises” that retail industry lobbyists made when they pushed for the Durbin Amendment. Now, six years later, “Is the consumer the one that just got screwed?” Watch the video to find out.
NAFCU President and CEO Dan Berger urged NAFCU members to reach out their lawmakers and push them to support the repeal of the Durbin debit interchange amendment in a message Thursday. The 2017 “Financial CHOICE Act,” which could be introduced in the coming weeks, is expected to include a provision to repeal the amendment, which was included as a late addition to the 2010 Dodd-Frank Act. Continue Reading
Several new op-eds spotlight the negative impact of Durbin amendment price controls on community banks and the financial services industry at large. Continue Reading
As CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation gets underway, CUNA and state leagues are taking to publications across the country to highlight the number of ways credit unions are fighting to better serve consumers. League efforts in Massachusetts, New Jersey and Ohio have led to recent articles on how credit unions can better serve consumers through regulatory relief. Continue Reading
BANKS CLAIM WIN ON DURBIN — From a financial services lobbyist: “The debit-card networks and issuing banks scored an under-the-radar win Tuesday when the House Financial Services Committee passed a Dodd-Frank replacement that included a repeal of Durbin. The anti-Durbin crowd, led by the Electronic Payments Coalition, worked hard for months to make sure Durbin was included in the bill — and stayed there, despite pressure from the retailers to strip it. “That included member meetings, calls in the district, newspaper and online ads, etc. The merchants applied similar (perhaps greater … ) pressure on members to offer an amendment to remove the Durbin repeal.” Continue Reading
The Electronic Payments Coalition also showered praise on Hensarling’s bill. Both ABA and the Electronic Payments Coalition have advocated for eliminating Dodd-Frank’s limitations on credit card swipe fees, a provision commonly referred to as the “Durbin Amendment” after its lead advocate, Sen. Dick Durbin (D-Ill.). The Financial CHOICE Act would repeal the Durbin Amendment, which led EPC Executive Director Molly Wilkinson to call the legislation “the right thing to do for consumers and small community banks and credit unions.” She made the remarks Monday in a letter to Hensarling. Continue Reading