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EPC issued a statement in response to some retail trade associations’ objections to the proposed interchange settlement. Trish Wexler provided a written statement arguing that “It is clear that for some retail lobbying groups, nothing is ever enough. “
New data 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. According to the U.S. Energy Information Administration, nearly 134 billion gallons of gas were sold in 2011, with approximately 48 billion gallons purchased using debit – the type of payment impacted by the Durbin amendment, which reduced interchange rates by about 70 percent for this category.
According to an Ipsos Public Affairs survey, only seven percent of respondents believe most retailers are passing their savings on to consumers now that the government has lowered the amount retailers pay to accept debit cards.
This press release from the ICBA discusses the potentially damaging effects of the Durbin amendment on community banks and consumers.
On the eve of implementation, Fed Chairman Bernanke and FDIC Chairman Bair expressed concern that debit card rule exemption for small financial institutions wouldn’t work.
Representative Frank argues that the Durbin amendment should be postponed in order to further investigate the effects of altering interchange rules.
This EPC release contains several comments from regulators and congressmen who predict the unintended, harmful consequences of the Durbin amendment.
In a House Subcommittee on Financial Institutions and Consumer Credit hearing, Federal Reserve Chairman Ben Bernanke confirmed fears about the exemption for small financial institutions, stating that it may not be effective in the marketplace. FDIC Chairman Sheila Bair concurred.
Written statement of the Electronic Payments Coalition submitted to the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit on “Understanding the Federal Reserve’s Proposed Rule on Interchange Fees: Implications and Consequences of the Durbin Amendment.”
Every major national bank and credit union trade association joined together to urge fundamental revisions of the Federal Reserve’s debit card ruling.