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Consumers’ Views of Durbin Amendment on 7th Anniversary Underscore Need to Repeal
More than half of voters feel they have not received a discount from retailers since the Durbin amendment went into effect seven years ago, despite retailers’ promises otherwise, according to new Morning Consult data. As such, a plurality of voters believes the amendment should be repealed if savings aren’t being passed along, consistent with consumers’ views in 2017. “Year after year, retailers continue to harm consumers by failing to pass along promised savings—to the tune of six to eight billion dollars each year—while obstructing data security legislation establishing standards for all parts of the industry.,” said Jeff Tassey, chairman of the board of the Electronic Payments Coalition (EPC). “As we hit another unfortunate milestone with the Durbin amendment, it’s time retailers put their customers over profits in all areas of payments.” The Durbin amendment, passed as part of the Dodd-Frank Act, placed price controls on interchange for debit card transactions. … Continue reading
CEI: No More Free Checking for the Poor
The Durbin Amendment strikes again. Today brings further evidence that the little-known amendment to the Dodd-Frank Act of 2010 by Sen. Richard Durbin (D-IL), which imposed price controls on debit card fees, has stripped access to financial services for the less affluent. Continue Reading
Op-Ed: Retailers Want to Turn Page on Durbin to Escape Accountability for Its Failures
As I read a recent op-ed regarding debit interchange price controls and a possible expansion to credit, I nearly spit out my coffee astonished by retailers’ misrepresentation of the state of play on the issue. In the desperate hope of turning the page, they are calling for Congress and this administration to double down on an anti-free market policy that has hurt low-income consumers, small businesses and small financial institutions — all while enriching retail behemoths. But to splash cold water on the delusions of big retailers, it’s not going to happen. As the old saying goes, “fool me once shame on you, fool me twice shame on me.” In 2010, corporate retailers persuaded Sen. Richard Durbin (D-Ill.) to add an amendment to the Dodd-Frank Act, at the last moment with little scrutiny and debate. The provision, known today as the Durbin Amendment, capped interchange fees with the promise that it would lead … Continue reading
EPC Statement on Chairman Hensarling Not Seeking Re-Election
The following statement can be attributed to Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC), in response to House Financial Services Committee (HFSC) Chairman Hensarling’s announcement that he will not seek re-election in 2018. “EPC congratulates Chairman Hensarling on a long, successful career in Congress, and thanks him for his service to our country. In his more than fourteen years as congressman, including more than four years as Chairman of the House Financial Services Committee, he has repeatedly stood up for consumers and the free market. As Chairman, he continuously demonstrated his principled commitment to ending the Durbin amendment’s harmful price controls, leading his committee to vote twice in favor of repealing the provision and speaking out on its negative consequences. It is important that members of Congress stand up for what is right, especially given the mounting evidence that shows the Durbin amendment is a failure. Chairman Hensarling … Continue reading
Op-Ed: Fed finds (again!) that Durbin Amendment hurts consumers
The Federal Reserve Board of Governors recently released a report called “The Impact of Price Controls in Two-sided Markets: Evidence from US Debit Card Interchange Fee Regulation.” That dense title is one that few consumers—or even policy wonks—will put on their August reading lists. They should. It proves, yet again, that lawmakers like House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Reps. Blaine Luetkemeyer (R-Mo.), and Ted Budd (R-N.C.) and others were right: the Durbin amendment, shoved into the 2010 Dodd-Frank bill at the last minute by politicians doing the bidding of merchants like Walmart, is the reason that American consumers are paying more to bank. Continue Reading
EPC Cheers Hensarling, Luetkemeyer and Budd for Support of Durbin Amendment Repeal
WASHINGTON—(June 8, 2017)—The Electronic Payments Coalition (EPC) applauds House Financial Services Committee (HFSC) Chairman Jeb Hensarling and Reps. Blaine Luetkemeyer (R-MO) and Ted Budd (R-NC) for speaking out today on the House floor in defense of the consumers, small businesses, credit unions, and community banks harmed by the Durbin amendment. Although repeal of the Durbin amendment was removed from the CHOICE Act, these leaders stressed the importance of ending this failed policy. “As Chairman Hensarling, Reps. Luetkemeyer and Budd stated, price controls have no place in government policy, as they go against free market principles and always end up hurting consumers,” said Molly Wilkinson, executive director of EPC. “For six years too long, the Durbin price controls have allowed big box retailers to pocket $42 billion at the expense of consumers, small businesses, community banks, and credit unions. We appreciate their leadership in the fight to end this merchant markup … Continue reading
Heritage’s Norbert Michel: Congress Should Repeal the Durbin Amendment Because It Is a Price Control
Business owners expect conservative members of Congress to protect them from the federal government. They particularly rely on conservatives for protection against government price controls. No self-respecting business owner wants the federal government telling him what price he can charge. Business owners – not federal bureaucrats – best understand what prices they need to charge to earn a living and to make their investments worthwhile. Continue Reading
CEI Criticizes House for Capitulation on Durbin Amendment Price Controls
CEI financial policy expert Iain Murray criticized the House for stripping out repeal of the Durbin amendment yesterday from the Financial CHOICE Act. The House Republicans’ capitulation on Durbin repeal is a slap in the face for lower-income Americans. All the evidence suggests the cap on debit card interchange fees resulted in a windfall for retailers who failed to pass on savings to consumers. In fact, many of those consumers were hit by higher bank fees as banks sought to replace the lost income stream from processing debit card transactions. The result has been a net loss of around $25 billion a year for American consumers, most of it born by low-income households. The House had a chance to right this wrong, and they blew it. Continue Reading
NTU Disappointed Durbin Amendment Repeal Pulled From CHOICE
NTU’s Executive Vice President, Brandon Arnold, responded to the repeal of the Durbin amendment: National Taxpayers Union is extremely disappointed by the decision to remove language from the Financial CHOICE Act that would have repealed price controls on debit card swipe fees. While its supporters claim that the Durbin Amendment is a pro-consumer measure, it has instead been little more than a government-imposed windfall for the retail industry. Continue Reading
EPC Continues to Fight for Repeal of Price Controls
The Electronic Payments Coalition (EPC) promised to keep fighting for repeal of the Durbin amendment today and will continue to work with Congress to stop this failed policy. “The House Financial Services Committee voted twice in back-to-back congresses to repeal the Durbin Amendment because members know this is a crony handout that has generated unearned billions for the Big Box retailers and heartburn for their customers,” said Molly Wilkinson, executive director of the EPC. “The Durbin price controls hurt consumers, community banks and credit unions and even small merchants. This is a bad policy, and we, the Electronic Payments Coalition, are committed to repealing it.” Since the policy took effect in 2011, the special-interest Durbin amendment has allowed merchants to collect more than $42 billion they promised to pass along to their customers. In that time, merchants have raised prices while banks and credit unions have lost revenue used to … Continue reading