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The Electronic Payments Coalition submitted comments to the House Financial Services Committee on the Financial CHOICE Act, supporting the inclusion of the Durbin Amendment’s repeal.
Professor Todd Zywicki’s letter to the House Financial Services Committee offers support for repealing the Durbin Amendment, as included in the Financial CHOICE Act.
Millions of Americans are hitting the road this weekend for vacation. While traveling, many of us will stop at gas stations and convenience stores to stretch our legs, grab a bite, and fill our tanks—putting us at risk for skimming fraud. Recent data shows that nonbank ATMs, especially those at convenience stores, are being targeted by thieves using skimmers to pull debit card data. Gas pumps, which do not have to be EMV compliant until October 2017, are also susceptible to skimming. Police around the country are warning consumers about gas pump skimmers. So as you’re hitting the road for your summer vacation, be sure to ask “Got chip?” when you pull out your credit or debit card and dip instead of swiping. Below are helpful tips to protect your information.
The undersigned state bankers associations, representing banks of all sizes from across the country, wrote to express their support for H.R. 5465, a bill that would repeal the so-called “Durbin Amendment” and eliminate the government-imposed price controls on debit card interchange, which has greatly harmed consumers and the banks that serve them. See the full text below.
Despite Retailer Claims, Durbin Amendment Has Harmed Community Banks, Credit Unions and Small Businesses
On June 14, 2016, EPC’s members American Bankers Association (ABA), Consumer Bankers Association (CBA), Credit Union National Association (CUNA), Financial Services Roundtable (FSR), Independent Community Bankers of America (ICBA), and National Association of Federal Credit Unions (NAFCU) sent a letter to Chairmen Hensarling and Neugebauer in support of their efforts to repeal the Durbin Amendment.
SETTING THE RECORD STRAIGHT: New Analysis Demonstrates the Durbin Amendment Has Not Led to Consumer Savings or Employment Gains, Contrary to Retailer Claims
The Electronic Payments Coalition (EPC) released a new analysis today that directly dispels inaccurate claims in a report frequently cited by merchant and retailer groups on the effects of the Durbin Amendment. Retailer claims that the Durbin Amendment has benefited consumers and supported employment gains are based on a flawed study that relies on faulty assumptions. Independent data from the Federal Reserve verifies that merchants are the sole beneficiaries of interchange price caps, at the expense of both consumers and the financial industry. “Merchant groups have been touting a study they funded in 2013 by economist Robert J. Shapiro to back up their positions on interchange regulation,” said Molly Wilkinson, executive director of EPC. “The study is fundamentally flawed and presents an inaccurate picture of the true impact of the Durbin Amendment. This is a failed policy that only benefits the special interests that pushed for it—big box retailers.” The … Continue reading
The Durbin Amendment, a.k.a. “merchant markup,” allows big box retailers to pocket $8 billion dollars a year from customers’ purchases. That’s $32 billion since Congress passed this law and retail groups are looking to increase their merchant markup even more. Additionally, big box retailers are not held to any federal standards to protect their customers, yet 90% of consumers agree they should be held to similar standards as banks and financial institutions when it comes to keeping customer data secure and private. The Data Security Act of 2015 would help protect consumers but retailers are fighting the bill to increase their bottom line. It’s time to put consumers first.