The CATO Institute: The Dangerous Experiment of the Durbin Amendment (PDF)
The Durbin Amendment’s regulation of debit interchange represents a radical effort to extend price regulation to areas in which it has never been attempted before. That effort was undertaken in response to strong factional industry pressures, but without any serious examination of how payment systems operate.
WSJ: The Dick Durbin Bank Fees "Citing the negative impact of the Durbin amendment and other regulations on customer profitability, Texas-based IBC bank recently announced its decision to close 55 supermarket-based branches, eliminating 500 jobs, rather than increasing banking fees. Other banks will inevitably follow suit."
Mr. Zywicki is professor of law at George Mason University and a senior scholar of the Mercatus Center.
Big Government: Durbin’s Amendment: Handout to Retailers Is Why Banks Are Charging You More "The overall point is that whether the banks overcharge now or just make up the losses in these new fees, the Durbin amendment is a big hit for the consumer at a time where they are squeezed enough."
What the Durbin Amendment Means for You "Those who cannot qualify for, or want to avoid, credit cards will be forced to pay more for checking accounts or resort to high-fee prepaid debit cards. Even assuming that merchants pass on all of the savings from lower debit interchange fees onto their customers, those who rely on checking accounts will have difficulty recouping their losses. The effect will be strongest for those who struggle to make minimum balance requirements on their checking accounts. While the effect on consumers as a whole is uncertain, it is likely that the poor will bear the brunt of the Durbin Amendment’s ill effects."
Durbin Amendment impact will devastate small businesses
The Durbin Amendment’s regulation of debit interchange represents a radical effort to extend price regulation to areas in which it has never been attempted before. That effort was undertaken in response to strong factional industry pressures, but without any serious examination of how payment systems operate.
WSJ: The Dick Durbin Bank Fees "Citing the negative impact of the Durbin amendment and other regulations on customer profitability, Texas-based IBC bank recently announced its decision to close 55 supermarket-based branches, eliminating 500 jobs, rather than increasing banking fees. Other banks will inevitably follow suit."
Mr. Zywicki is professor of law at George Mason University and a senior scholar of the Mercatus Center.
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| Thanks, Dick |
What the Durbin Amendment Means for You "Those who cannot qualify for, or want to avoid, credit cards will be forced to pay more for checking accounts or resort to high-fee prepaid debit cards. Even assuming that merchants pass on all of the savings from lower debit interchange fees onto their customers, those who rely on checking accounts will have difficulty recouping their losses. The effect will be strongest for those who struggle to make minimum balance requirements on their checking accounts. While the effect on consumers as a whole is uncertain, it is likely that the poor will bear the brunt of the Durbin Amendment’s ill effects."
Durbin Amendment impact will devastate small businesses
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