For more than four years price-fixed interchange fees have enabled retailers to enjoy an extra $36 billion in revenue under the Durbin Amendment—at the expense of customers. Despite assurances that this income would be passed on to debit customers in the form of lower prices, retailers have taken advantage of this defective policy to pad their bottom lines leaving customers with broken promises and empty wallets.
Thankfully, House Financial Services Chairman Jeb Hensarling and Congressman Randy Neugebauer are addressing the Durbin Amendment which is allowing retailers to exploit the electronic payments system. Since 2011, the legislation has only harmed customers and placed undue stress on financial institutions and their ability to offer low-cost products.