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After Four Years, Durbin Amendment Still Failing Consumers

| American Banker

This week marks the fourth anniversary of the “Durbin amendment,” a defective law directing the Federal Reserve to impose price-controls on debit interchange fees.

Slipped into the Dodd-Frank financial reform bill at the eleventh hour, the amendment has resulted in billions of dollars in revenue for merchants and not even a Slurpee of savings for consumers.

Big-box retailers like Target, Walgreens, Home Depot, and Walmart promised Congress they would pass their savings — about $8 billion annually — to consumers in the form of lower prices. From the beginning, critics of the law, including consumer groups, predicted that retailers would pocket these savings instead.

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