Heritage Foundation: Repealing the Durbin Amendment: A Vote for the Rule of Law
Section 1075 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, known as the Durbin Amendment, requires the Federal Reserve Board of Governors to cap the debit card interchange fees that large banks charge.[1] These fees, charged to merchants every time consumers swipe their debit cards, have long been a source of controversy. Since the 1980s, as the volume of card transactions increased, retailers have complained that the fees are too high because large banks and card network companies collude to fix prices.[2] Retailers are currently engaged in an antitrust class action lawsuit over credit card interchange fees, and it is likely a similar suit would have been filed over debit card interchange fees had the Durbin Amendment not been enacted.[3]