Durbin Call for Action, Says Debit Card System Is 'Price-Fixing'

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As April 21st draws nearer, debit card payment stakeholders go on the offense in what can seem to be a free for all. Case in point is Senator Durbin’s shrill defense of his statute, calling the industry to task for what he calls “price fixing” by the card networks. In the meantime, no news on any compromise bill coming out of Congress.

“A bipartisan group of senators is seeking a hurry-up vote on an amendment that would delay the fee changes for two years, an effort that has frustrated Durbin. His amendment won 64 votes last year. “We knew at the time it was controversial, but I didn’t anticipate the political response we’ve received this year. I’ve never seen such an all out effort by credit card companies …” Durbin said this afternoon. “You would think there was a billion dollars a month at stake on this issue,” Durbin continued. “And you would be right. In fact, it’s $1.3 billion.” He was referring to the total of monthly costs retailers pay for fees just on debit cards.”

Meanwhile, the Federal Reserve Board –through Chairman Bernanke– is appearing to signal that they are prepared to put more teeth in to their rules with regards to making sure that smaller financial institutions are protected. His recent statements also seem to indicate that the FRB is anticipating issuing their rules on April 21st.

Read entire article here: http://www.stltoday.com/news/local/govt-and-politics/political-fix/3d1ec91e-5661-11e0-88f1-00127992bc8b.html

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