Durbin Impact Feud Continues Unabated
Retail associations are celebrating what they are calling a year since their legislative victory in the battle over the Durbin amendment by asserting that none of amendment opponents' dire predictions have come true.
The Merchant Payments Coalition, an association of retail trade associations formed to force lower debit interchange, pegged the year countdown to the defeat of the Tester amendment, the last major push to delay the implementation of the amendment's interchange cap.
But the Electronic Payments Coalition, an industry group made up of the major card brands along with card issues, including credit unions, attacked the merchants’ assertions.
“The Durbin amendment was an epic failure,” said the EPC in a statement. “Congress meddled in a battle between two giant industries to pick winners and losers–a battle that ended with an $8 billion windfall to retailers and left consumers holding the bag. Giant retailers promised to lower prices if Congress put these unprecedented price controls on interchange fees. But have you seen lower prices at the register? Have you seen a discount for using your debit card? Retailers broke their promise and are instead pocketing the windfall–and going back for more.”